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The Zacks Analyst Blog Barrick Gold and Kinross Gold
Read MoreHide Full Article
For Immediate Releases
Chicago, IL – February 12, 2025 – Zacks.com announces the list of stocks and ETFs 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 like Barrick Gold Corp. (GOLD - Free Report) and Kinross Gold Corp. (KGC - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
2 Gold Mining Stocks That Could Explode Under Trump’s Tariffs
Despite ebbing recession fears and a resilient labor market, gold prices have gained traction due to President Trump’s tariffs on imported goods, giving a boost to gold mining stocks like Barrick Gold Corp. and Kinross Gold Corp.
Should you consider investing in these gold mining stocks? Let’s see –
Impact of Trump Tariffs 2.0 on Stocks
Trump recently imposed an additional 25% tariff on imports of base metals like aluminum and steel. Trump also announced plans to impose reciprocal tariffs and reshape trade relationships with several partners. Besides an additional 10% tariff on Chinese imports, the Trump administration planned but delayed a 25% tariff on products from Canada and Mexico.
Tariffs have always harmed stocks. In 2018 and 2019, the S&P 500 consistently declined 5% on days when the Trump administration announced tariffs, per The Goldman Sachs Group, Inc. (GS). For every 5% rise in U.S. tariffs, the S&P 500’s earnings per share are expected to decrease 1-2%, according to Goldman Sachs’ chief equity strategist David Kostin. Tariffs strengthen the dollar, adversely impacting S&P 500 companies as they earn some revenue abroad.
Tariffs are expected to increase price pressures, leading to higher interest rates and an increase in bond yields. Higher bond yields, in turn, make stocks look less alluring.
Gold Glitters, So Does Mining Stocks
Unlike stocks, tariffs bode well for gold prices. This is because, especially, the threat of reciprocal tariffs may escalate a trade war and disrupt global economic growth, increasing the demand for safe-haven assets like gold.
Gold prices, therefore, soared to a record high above $2,900 an ounce on Monday, driven by Trump’s tariffs. Gold prices surged 44% last year and trounced the S&P 500’s return of 22%, per Blackrock Investment Institute. After all, central banks globally acquired more than 1,000 tonnes of gold in 2024. It’s been the third successive year of no less than 1,000 tonnes of gold purchases by central banks globally, according to the World Gold Council.
Prominent banks like Goldman Sachs and Citigroup Inc. (C) raised the target price for gold to $3,000 an ounce by the end of the year. With the price of the yellow metal scaling upward, profit margins of gold mining stocks such as Barrick Gold and Kinross Goldare expected to improve, making them attractive investments.
Barrick Gold – Gaining From Major Exploration Programs
Barrick Gold is a major global gold mining company with operations in the United States. Barrick Gold’s tactical investments, including the Nevada joint venture with Newmont, solidify its position as a leading gold mining company with strong growth potential.
Barrick Gold’s expected earnings growth for the current year is 46.4%. The $1.23 Zacks Consensus Estimate for GOLD’s earnings per share (EPS) is up 32.3% from a year ago.
Brokers assume the GOLD stock will jump, raising the average short-term price target to $21.42 from the last closing price of $17.04 and setting the highest target at $27.86, an upside of 63.5%.
Kinross Gold – Gaining From Organic Development Projects
Kinross Gold explores gold mines and has major assets in the United States and Canada. Kinross Gold is advancing projects for a strong growth profile among top gold producers.
Kinross Gold’s expected earnings growth for the current year is 65.9%. The 73 cents Zacks Consensus Estimate for KGC’s EPS is up 102.8% from a year ago.
Brokers assume the KGC stock will jump, raising the average short-term price target to $12.54 from the last closing price of $11.87 and setting the highest target at $14.45, an upside of 21.7%.
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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 Barrick Gold and Kinross Gold
For Immediate Releases
Chicago, IL – February 12, 2025 – Zacks.com announces the list of stocks and ETFs 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 like Barrick Gold Corp. (GOLD - Free Report) and Kinross Gold Corp. (KGC - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
2 Gold Mining Stocks That Could Explode Under Trump’s Tariffs
Despite ebbing recession fears and a resilient labor market, gold prices have gained traction due to President Trump’s tariffs on imported goods, giving a boost to gold mining stocks like Barrick Gold Corp. and Kinross Gold Corp.
Should you consider investing in these gold mining stocks? Let’s see –
Impact of Trump Tariffs 2.0 on Stocks
Trump recently imposed an additional 25% tariff on imports of base metals like aluminum and steel. Trump also announced plans to impose reciprocal tariffs and reshape trade relationships with several partners. Besides an additional 10% tariff on Chinese imports, the Trump administration planned but delayed a 25% tariff on products from Canada and Mexico.
Tariffs have always harmed stocks. In 2018 and 2019, the S&P 500 consistently declined 5% on days when the Trump administration announced tariffs, per The Goldman Sachs Group, Inc. (GS). For every 5% rise in U.S. tariffs, the S&P 500’s earnings per share are expected to decrease 1-2%, according to Goldman Sachs’ chief equity strategist David Kostin. Tariffs strengthen the dollar, adversely impacting S&P 500 companies as they earn some revenue abroad.
Tariffs are expected to increase price pressures, leading to higher interest rates and an increase in bond yields. Higher bond yields, in turn, make stocks look less alluring.
Gold Glitters, So Does Mining Stocks
Unlike stocks, tariffs bode well for gold prices. This is because, especially, the threat of reciprocal tariffs may escalate a trade war and disrupt global economic growth, increasing the demand for safe-haven assets like gold.
Gold prices, therefore, soared to a record high above $2,900 an ounce on Monday, driven by Trump’s tariffs. Gold prices surged 44% last year and trounced the S&P 500’s return of 22%, per Blackrock Investment Institute. After all, central banks globally acquired more than 1,000 tonnes of gold in 2024. It’s been the third successive year of no less than 1,000 tonnes of gold purchases by central banks globally, according to the World Gold Council.
Prominent banks like Goldman Sachs and Citigroup Inc. (C) raised the target price for gold to $3,000 an ounce by the end of the year. With the price of the yellow metal scaling upward, profit margins of gold mining stocks such as Barrick Gold and Kinross Goldare expected to improve, making them attractive investments.
Barrick Gold – Gaining From Major Exploration Programs
Barrick Gold is a major global gold mining company with operations in the United States. Barrick Gold’s tactical investments, including the Nevada joint venture with Newmont, solidify its position as a leading gold mining company with strong growth potential.
Barrick Gold’s expected earnings growth for the current year is 46.4%. The $1.23 Zacks Consensus Estimate for GOLD’s earnings per share (EPS) is up 32.3% from a year ago.
Brokers assume the GOLD stock will jump, raising the average short-term price target to $21.42 from the last closing price of $17.04 and setting the highest target at $27.86, an upside of 63.5%.
Kinross Gold – Gaining From Organic Development Projects
Kinross Gold explores gold mines and has major assets in the United States and Canada. Kinross Gold is advancing projects for a strong growth profile among top gold producers.
Kinross Gold’s expected earnings growth for the current year is 65.9%. The 73 cents Zacks Consensus Estimate for KGC’s EPS is up 102.8% from a year ago.
Brokers assume the KGC stock will jump, raising the average short-term price target to $12.54 from the last closing price of $11.87 and setting the highest target at $14.45, an upside of 21.7%.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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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.