Analysts aren’t the only ones who are suddenly so bullish, either. A recent Gallup poll shows that you and I love gold too. According to the survey, 26% of Americans felt that gold was the best long-term investment—nearly doubling the 15% who believed so in 2022—while individual stocks or equities were chosen as the essential holding by only 18% of those polled. This is the first instance since 2013 that Americans’ sentiment for individual equities has been lower than that regarding gold. Both were placed second behind real estate. What’s exciting about this is that there are at least a handful of ways to invest in gold, whether it be through ETFs, gold royalty firms, mining companies, or owning physical gold bullion. It’s fascinating to me that many nations still keep gold in vaults to prepare for hard times while also protecting its value as a tangible asset.
Moving on, I’ve found three gold stocks with something unique to offer. With hints of a recession on the way, now is the time for those looking to invest. Let’s have a look:
Sandstorm Gold Ltd (SAND)
Sandstorm Gold Ltd. (SAND) purchases gold and other precious metals through contracts and royalties. Nolan Watson and David I. Awram founded SAND on March 23rd, 2007, headquartered in Vancouver, Canada. SAND’s stock has risen 12.6% in the past three months, compared to a 2% rise in the S&P 500. With a $1.6 billion market cap and a 0.71 beta score, SAND has a P/E ratio of 17x, a P/B ratio of 1.21x, and a PEG ratio of 1.9x. At its most recent earnings call, analysts forecasted SAND’s EPS to be $0.03, while it reported $0.09, surprising by a 200% margin. SAND shows healthy YOY growth in revenue (+24.36%), net income (+71.41%), and net profit margin (+37.93%), while it has a 3-5 year forecasted EPS growth of 56.9%. SAND has a dividend yield of 1.03% and a $0.07 annual payout, with a 78.28% payout ratio. With a 10-day average volume of 2.27 million shares, SAND has a median price target of $8.33, with a high of $9.28 and a low of $6.50, allowing room for a more than 73% potential price jump from its current position. Analysts, collectively, have awarded SAND 10 buy ratings.
McEwen Mining Inc (MUX)
McEwen Mining, Inc. (MUX) is a company that produces and explores precious and base metals. MUX operates through the following regional segments: Canada, the U.S., Mexico, and Los Azules. MUX was founded on July 24th, 1979, in Toronto, Canada, and is headquartered there to this day. With a positive SMA and its stock being up by 34.98% YTD, MUX has a market cap of $385.5 million and an enterprise value of $411 million, showing TTM asset growth of 53% and TTM revenue of $119 million at $2.51 per share. MUX has a P/S ratio of 2.5x, a P/B ratio of 1.18x, and a low D/E of 16.46%. MUX most recently surpassed analysts’ revenue projections for Q1 2023 by 15.71% and shows YOY revenue growth of 36.06%. With a 10-day average trading volume of 386,750 shares, MUX has an analyst-assigned median price target of $11.25, with a high of $18.50 and a low of $10.75. The momentum for MUX is remarkable; even its low-end price of $10.75 would be a 36% price increase, while its high point offers a 134% price jump. MUX is what I would very much consider an under-the-radar stock. MUX has four analyst buy ratings.
Gold Royalty Corp (GROY)
Gold Royalty Corp. (GROY) is a precious metals-focused royalty firm that gives mining companies financing alternatives. GROY focuses on purchasing royalties at different stages of a given mine’s life cycle to develop a portfolio that provides investors with attractive returns. GROY’s portfolio includes return royalties varying from 0.5% to 2% on 17 separate gold properties. GROY was founded in 2020 and is based in Vancouver, Canada. GROY’s CEO David Garofalo recently said with optimism, “Gold Royalty is beginning to see the benefits of key assets commencing and ramping up production.” GROY has a market cap of roughly $301 million, a solid 0.96 beta, a P/B ratio of 0.58x, and a TTM revenue of $3.9 million; meanwhile, the stock is down by 10.30% YTD. GROY shows YOY growth in revenue (+43.40%), EPS (+34.61%), net income (+54.93%), and net profit margin (+68.68%). Its most recent quarterly earnings report boasted a collective holding of 406,000 ounces of gold. GROY has a dividend yield of 1.91% and a quarterly payout of $0.01 ($0.04/yr) per share. With a 10-day average volume of 442,970 shares, GROY has a median price target of $4.50, with a high of $8.75 and a low of $4. Here’s why I like GROY as much as I do: That median target would put into effect a 115% price increase, while its high mark would hike its price by 318%. Even the lowest end of GROY’s range offers a price upside of over 91% from where it currently sits. GROY has three buy ratings and two hold ratings.
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