The allure of gold stocks to buy has always shimmered in the complex web of the stock market, especially during stormy economic climates. At this time, gold stocks find themselves at an intriguing juncture as investors look to navigate the choppy waters of historically high interest rates and economic frailties, effectively anchoring their portfolios with these tried and tested safe havens.
The global market’s growing restlessness has reignited the fear trade. As the winds of market volatility pick up, investors are sailing back to the safe havens of gold. With its robust intrinsic value and storied past as a bulwark against inflation and economic downturns, gold stocks to buy are emerging as the beacon for those seeking safe passage in these tumultuous times.
Newmont (NEM)
For those with a keen eye on gold stocks poised for a breakout rally in 2024, Newmont (NYSE:NEM) stands out as a sparkling prospect. Recognized as the world’s largest precious metals mining corporation, its portfolio extends beyond gold, encompassing copper, silver, zinc and lead. Despite its sideways trajectory over the past year and shedding more than 28% of its value year-to-date, NEM stock presents an enticing long-term proposition with a price-to-sales ratio of 2.5 times. Add to that a generous dividend yield of over 4%, and it’s clear why this blue-chip stock continues to turn heads.
Diving deeper, Newmont’s investment-grade balance sheet is a testament to its financial strength, offering tremendous flexibility for both organic and acquisition-driven growth. As of the second quarter, the company had a robust liquidity cushion of $6.2 billion. Moreover, its recent strategic move to acquire Newcrest Mining is set to amplify Newmont’s gold reserves, which already stand at an impressive 96 million ounces. With such assets in its arsenal, Newmont promises stable production well into the 2040s.
Wheaton Precious Metals (WPM)
Wheaton Precious Metals (NYSE:WPM) offers a refreshing twist in the burgeoning precious metals space. Unlike conventional mining entities, Wheaton operates as a gold streaming company. By providing upfront capital to miners, it secures a continuous stream of precious metals, which enables them to marginalize inherent operational risks effectively.
The company’s recent financial performance is a testament to its robust business model. The company outshone second-quarter earnings and revenue expectations, registering an earnings-per-share of 31 cents while raking in sales of $264.97 million. While it may have trailed the S&P 500 this year, a glance at its five-year trajectory reveals a stock that has more than doubled in value. Analysts seem optimistic, too, with a current consensus rating of Moderate Buy and a projected upside of 44.3% from its current price.
Furthermore, with three consecutive years of dividend growth and a payout ratio of 61%, WPM not only promises a stable dividend but also paints a promising picture of future growth.
Barrick Gold (GOLD)
Barrick Gold (NYSE:GOLD) is shining bright on the investment radar, and for good reason. Beyond its appealing valuation, GOLD stock tantalizes with a dividend yield of 2.81%, with a 5-year growth rate of 27%. But what truly sets Barrick Gold apart is its clear vision for production growth. Its ambitious guidance forecasts a 30% surge in production by the decade’s close. Pair this with a potential uptick in gold prices, and you set the stage for incredible value creation.
Diving into the numbers, Barrick’s financial health is strong, with an operating cash flow of $1.6 billion reported for the first half of 2023. Moreover, if gold prices hover around $2,200 or $2,300 an ounce, Barrick could potentially deliver an OCF surpassing $4 billion. Therefore, within this context, Barrick Gold stands out with its rock-solid fundamentals and an investment-grade balance sheet.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.