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The Zacks Analyst Blog Highlights Aris Mining, Equinox Gold, Idaho Strategic Resources and Triple Flag Precious Metals
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For Immediate Release
Chicago, IL – April 9, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Aris Mining Corp. (ARMN - Free Report) , Equinox Gold (EQX - Free Report) , Idaho Strategic Resources (IDR - Free Report) and Triple Flag Precious Metals Corp. (TFPM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
4 Stocks to Keep an Eye On as the Yellow Metal Glitters
Gold prices have been on a tear lately, hitting a slew of record highs in the past two months. Gold prices climbed more than 20% since October. The yellow metal increased 4% last week and notched a third successive weekly gain.
U.S. gold futures gained 1.7% to $2,347.30 per ounce in the last trading session despite a solid uptick in nonfarm payrolls in March. So, what's behind gold prices shattering record highs? China's move to unremittingly add gold holdings, the Federal Reserve's dovish stance, and sticky inflation are helping gold prices scale northward.
The People's Bank of China purchased gold for the 17th consecutive month in March and extended its precious metal buying spree. China's gold reserves soared to 72.74 million ounces last month.
China increased its gold reserves since the bullion metal is considered usually a safe-haven asset that provides financial security amid uncertainty in the global markets. After all, Chinese legislators have noticed how the Western governments confiscated Russia's reserves following their invasion of Ukraine.
What's more, trade conflicts with the United States and geopolitical upheavals around Taiwan would compel China to keep acquiring gold. China, at present, has the wherewithal to buy the yellow metal as the manufacturing side of its economy expanded in March for the first time in six months.
Several countries, along with China, are also buying gold to partly replace the dollar, a process better known as de-dollarization. This is because gold not only acts as a security but also increases investment value.
In the United States, most of the market participants are expecting the Fed to start trimming interest rates in the latter half of 2024. Traders are now pricing in a more than 50% chance that the central bank will cut interest rates in June. Fed Chair Jerome Powell also assured investors about interest rate cuts and wasn't taken aback by the current rise in the PCE index.
Needless to say, a lower interest rate environment makes fixed-income investments less enticing. Since these instruments can't provide higher yields, money will flow out of them, and flow into gold. On the other hand, a rise in the key inflation gauge for the time being acts as a boon for the yellow metal. This is because gold acts as a hedge against inflation.
Hence, as gold shimmers, gold mining stocks have a fair chance to gain. These stocks have been bearing an uptick in production expenses due to higher labor costs. But with gold prices rallying, the miners are well-poised to join in.
The iShares Gold Trust (IAU), by the way, has gained 12.6% so far this year. This calls for astute investors to keep a tab on gold mining stocks such as Aris Mining Corp., Equinox Gold, Idaho Strategic Resources and Triple Flag Precious Metals Corp.. These stocks have a Zacks Rank#3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Aris Mining is a gold producer primarily in the United States. The company's expected earnings growth rate for the current year is 65.8%. Its estimated earnings growth rate for next year is 87.3%.
Equinox Gold is involved in exploring and developing gold deposits. Its main projects include the Mesquite gold mine in California. The company's expected earnings growth rate for the current year is 71.4%. Its estimated earnings growth rate for next year is 350%.
Idaho Strategic Resources predominantly produces gold at the Golden Chest Mine. The company's expected earnings growth rate for the current and next quarter are 500% and 133.3%, respectively. Its estimated earnings growth rate for the current year is 200%.
Triple Flag Precious Metals is a gold-focused streaming and royalty company that provides financial solutions to the mining industry worldwide including the United States. The company's expected earnings growth rate for the current year is 21.2%. Its estimated earnings growth rate for next year is 32.5%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Aris Mining, Equinox Gold, Idaho Strategic Resources and Triple Flag Precious Metals
For Immediate Release
Chicago, IL – April 9, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Aris Mining Corp. (ARMN - Free Report) , Equinox Gold (EQX - Free Report) , Idaho Strategic Resources (IDR - Free Report) and Triple Flag Precious Metals Corp. (TFPM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
4 Stocks to Keep an Eye On as the Yellow Metal Glitters
Gold prices have been on a tear lately, hitting a slew of record highs in the past two months. Gold prices climbed more than 20% since October. The yellow metal increased 4% last week and notched a third successive weekly gain.
U.S. gold futures gained 1.7% to $2,347.30 per ounce in the last trading session despite a solid uptick in nonfarm payrolls in March. So, what's behind gold prices shattering record highs? China's move to unremittingly add gold holdings, the Federal Reserve's dovish stance, and sticky inflation are helping gold prices scale northward.
The People's Bank of China purchased gold for the 17th consecutive month in March and extended its precious metal buying spree. China's gold reserves soared to 72.74 million ounces last month.
China increased its gold reserves since the bullion metal is considered usually a safe-haven asset that provides financial security amid uncertainty in the global markets. After all, Chinese legislators have noticed how the Western governments confiscated Russia's reserves following their invasion of Ukraine.
What's more, trade conflicts with the United States and geopolitical upheavals around Taiwan would compel China to keep acquiring gold. China, at present, has the wherewithal to buy the yellow metal as the manufacturing side of its economy expanded in March for the first time in six months.
Several countries, along with China, are also buying gold to partly replace the dollar, a process better known as de-dollarization. This is because gold not only acts as a security but also increases investment value.
In the United States, most of the market participants are expecting the Fed to start trimming interest rates in the latter half of 2024. Traders are now pricing in a more than 50% chance that the central bank will cut interest rates in June. Fed Chair Jerome Powell also assured investors about interest rate cuts and wasn't taken aback by the current rise in the PCE index.
Needless to say, a lower interest rate environment makes fixed-income investments less enticing. Since these instruments can't provide higher yields, money will flow out of them, and flow into gold. On the other hand, a rise in the key inflation gauge for the time being acts as a boon for the yellow metal. This is because gold acts as a hedge against inflation.
Hence, as gold shimmers, gold mining stocks have a fair chance to gain. These stocks have been bearing an uptick in production expenses due to higher labor costs. But with gold prices rallying, the miners are well-poised to join in.
The iShares Gold Trust (IAU), by the way, has gained 12.6% so far this year. This calls for astute investors to keep a tab on gold mining stocks such as Aris Mining Corp., Equinox Gold, Idaho Strategic Resources and Triple Flag Precious Metals Corp.. These stocks have a Zacks Rank#3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Aris Mining is a gold producer primarily in the United States. The company's expected earnings growth rate for the current year is 65.8%. Its estimated earnings growth rate for next year is 87.3%.
Equinox Gold is involved in exploring and developing gold deposits. Its main projects include the Mesquite gold mine in California. The company's expected earnings growth rate for the current year is 71.4%. Its estimated earnings growth rate for next year is 350%.
Idaho Strategic Resources predominantly produces gold at the Golden Chest Mine. The company's expected earnings growth rate for the current and next quarter are 500% and 133.3%, respectively. Its estimated earnings growth rate for the current year is 200%.
Triple Flag Precious Metals is a gold-focused streaming and royalty company that provides financial solutions to the mining industry worldwide including the United States. The company's expected earnings growth rate for the current year is 21.2%. Its estimated earnings growth rate for next year is 32.5%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.