Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the precious metal by buying stocks of companies engaged in exploration and mining. Some of the major players in the gold industry include mining companies Franco Nevada Corp. (FNV), Wheaton Precious Metals Corp. (WPM), and Newcrest Mining Ltd. (NCM). Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have outperformed the broader market, providing investors with a total return of 32.7% compared to the S&P 500’s total return of 5.7% over the past 12 months.1 These market performance numbers and the statistics in the tables below are as of June 25.
Here are the top 3 gold stocks with the best value, the fastest earnings growth, and the most momentum:
- Barrick Gold Corp.: Barrick Gold is a Canada-based mining company principally engaged in the production and sale of gold and copper. The company has operating mines and development projects in the U.S., Canada, South America, Australia, and Africa.
- Kinross Gold Corp.: Kinross Gold is a Canada-based gold mining company engaged in the exploration, development, and production of gold with properties in Canada, the U.S., Russia, Brazil, Ecuador, Chile, Ghana, and Mauritania. The company reported increases of 11.9% in metal sales and 66.9% in operating earnings in Q1 2020, which ended March 31, 2020. Kinross noted that all of its mines remained in operation and were not materially impacted by COVID-19 during the quarter. However, the company said that the global impact of a prolonged crisis could present future challenges for the company.2
- Alacer Gold Corp.: Alacer Gold is a gold producer engaged in the mining, development, and exploration of mineral deposits in Turkey. Shareholders must vote by July 8 on whether to approve the company’s proposed merger with SSR Mining Inc.