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Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the gold industry by buying stocks of companies engaged in the exploration and mining of the precious metal. Some of the biggest names in the gold industry include mining companies such as Newcrest Mining Ltd. (NCM), Wheaton Precious Metals Corp. (WPM), and Franco Nevada Corp. (FNV). Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have dramatically outperformed the broader market, providing investors with a total return of 32.6% compared to the S&P 500’s total return of 15.5% over the past 12 months. These market performance numbers and the statistics in the tables below are as of February 26.
Here are the top 3 gold stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Gold Stocks
These are the gold stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
- Gran Colombia Gold Corp.: Gran Colombia Gold is a Canada-based gold and silver exploration and development company with operations in Colombia. The company announced earlier this week that it had completed the spinoff of its Marmato Mining Assets through a reverse takeover transaction with Bluenose Gold Corp. (BN.H).
- Barrick Gold Corp.: Barrick Gold is a 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. Barrick Gold announced at the end of November 2019 that it had sold off its 50% interest in Kalgoorlie Consolidated Gold Mines located in Western Australia for a total cash consideration of $750 million.
- 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 announced last month that it had completed its acquisition of Chulbatkan, a high-quality development project in Russia, from N-Mining Ltd. for total fixed consideration of $283 million.
Fastest Growing Gold Stocks
These are the gold stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
- Newmont Corp.: Newmont acquires and develops mineral properties. The company produces primarily gold, but also silver, copper, zinc, and lead.
- Torex Gold Resources Inc.: Torex Gold Resources is a Canada-based gold mining company engaged in the exploration and development of gold properties. The company has operations in the Morelos Gold property located in southern Mexico.
- Semafo Inc.: Semafo is a Canada-based gold miner that operates two gold mines in the West African country of Burkina Faso.
Gold Stocks with the Most Momentum
These are the gold stocks that had the highest total return over the last 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Aura Minerals Inc. (ORA.TO)||CA$84.00||CA$365.7||304.0|
|Liberty Gold Corp. (LGD.TO)||CA$1.28||CA$303.4||232.5|
|K92 Mining Inc. (KNT.V)||CA$3.75||CA$797.5||223.3|
|S&P 500 (SPY)||N/A||N/A||15.5|
|VanEck Vectors Gold Miners ETF (GDX)
- Aura Minerals Inc.: Aura Minerals is a Canada-based mineral exploration and production company with operations in the Americas. The company focuses on the production of gold, copper, silver, and iron ore. Aura Minerals announced earlier this month that it has entered an agreement to purchase Z79 Gold (USA) Corp., a wholly-owned subsidiary of Para Resources Inc. Z79 has ownership interest in the Gold Road Mine located in Arizona.
- Liberty Gold Corp.: Liberty Gold is a Canada-based mining services company involved in the exploration, extraction, and production of gold, copper, silver, and other metals.
- K92 Mining Inc.: K92 Mining is a Canada-based mineral exploration and production firm focused on the Kainantu mine in Papua New Guinea.
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