Gold has long been considered a reliable hedge against inflation and a safe haven for investors during uncertain times. With the recent economic turmoil and global uncertainty, many investors are turning to gold as a means of protecting their wealth. As a result, gold stocks are becoming increasingly attractive to investors looking to capitalize on the precious metal. Today, the price of gold is around $1940 per troy ounce, just a stone’s throw away from its all-time high of $2,074.88, seen in August 2020.
This recent move in precious metals may have more to run. Thus, investors appear to want exposure to gold in its various forms. We have identified three stocks that are currently attractive and well-positioned to benefit from the current market environment. These companies have shown strong growth potential and are poised to capitalize on the increasing demand for gold.
Newmont Corporation (NEM)
As a leading gold producer with operations in multiple countries around the world, Newmont has a strong portfolio of assets and a proven track record of success. NEM is up 16% over the past month and will likely sustain solid momentum if the commodities price continues to rise. Gold miners often see increases far in excess of gold. That means that in bull market runs like this for precious metals, investors gain more upside.
Newmont has an investment grade balance sheet and ended 2022, with a total liquidity buffer of $6.7 billion. Last year, the company delivered free cash flow of $1.1 billion. The stock trades at an attractive forward price-earnings ratio of 22.8 and offers a dividend yield of 3.3% with apparent headroom for healthy dividend growth in 2023. With a focus on operational excellence and sustainability, Newmont is well-positioned to continue generating strong returns for its investors.
Sandstorm Gold Ltd (SAND)
SAND is a gold royalty company that provides upfront financing to gold mining companies in exchange for a percentage of the future production of gold. The company’s unique business model provides investors with exposure to gold prices without the risks and costs associated with traditional mining operations.
Recent financial results have been impressive, with strong revenue growth and improved margins. Additionally, the company’s balance sheet is solid, with a healthy cash position and no long-term debt.
Technically, SAND is showing bullish signals on the charts, with a 19% gain over the past month. The Relative Strength Index (RSI) is also in bullish territory, indicating that the stock has momentum on its side.
Barrick Gold Corporation (GOLD)
As one of the largest gold mining companies in the world Barrick has a diverse portfolio of mines located in some of the world’s top gold-producing regions, which helps to mitigate risks associated with any particular location. With a robust portfolio of assets and a track record of successful acquisitions. The company has a strong balance sheet and is focused on delivering value to its shareholders through operational excellence and strategic growth initiatives.Barrick Gold Corp is up 21% over the past month and may have room to run. Analysts give the stock a Buy rating and an average price target is $21.74,which represents a 16% upside. Considering the current market environment and the positive signals surrounding GOLD, it seems like a conservative estimate.
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