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Buy 5 Gold Stocks for Near-Term Gains on Rising Geopolitical Conflicts
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Key Takeaways
Gold prices near $3,400 per ounce amid geopolitical tensions are lifting gold mining stocks like FNV and KGC.
FNV expects 39.6% earnings growth in 2025, with estimates rising 3.7% over the last 30 days.
KGC earnings forecast is up 63.2% for the year, driven by expansions at Tasiast and new project momentum.
Gold prices have been witnessing a northward journey in recent months, benefiting the stocks associated with yellow metal mining. Heightened geopolitical conflicts in the Middle-East between Israel and Iran and more than three years of war between Russia and Ukraine are the latest catalysts for both spot and future gold prices.
On May 5, the spot gold price touched $3,415.57/ounce and is currently hovering around $3,400/ounce. Consequently, stock prices of several gold miners have jumped year to date. On June 16, President Donald Trump called for the immediate evacuation of Tehran, boosting the demand for the yellow metal, which is also known as a safe-haven investment.
At this stage, it should be fruitful to invest in gold mining stocks with a favorable Zacks Rank. Five such stocks are: Franco-Nevada Corp. (FNV - Free Report) , Newmont Corp. (NEM - Free Report) , Kinross Gold Corp. (KGC - Free Report) , AngloGold Ashanti plc (AU - Free Report) and Harmony Gold Mining Co. Ltd. (HMY - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Positive Catalysts for Gold
The northward journey of the yellow metal is likely to continue as the World Gold Council said that the gold mining industry is suffering from a scarcity of yellow metal deposits. On the demand side, several central banks of emerging economies are continuously buying the yellow metal. Central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low interest rate is beneficial for non-income-bearing bullions like gold.
Moreover, the use of gold in energy, healthcare and technology is rising. Therefore, an eventual demand-supply imbalance is likely to drive gold prices. Market participants are optimistic about the gold mining industry’s prospects. Giant investment bankers like Goldman Sachs and JP Morgan have forecasted that gold prices could climb to $4,000/ounce by 2026, suggesting continued bullish momentum.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Franco-Nevada Corp.
Zacks Rank #1 Franco-Nevada is well-poised to deliver strong earnings growth aided by increased contributions from its streaming agreements. Contribution from buyouts and a healthy portfolio of royalty and streaming agreements will aid the growth of FNV. Even though the company has been facing lower output due to the production halt in Cobre Panama, it is likely to be offset by FNV’s continued focus on cost management.
FNV has a debt-free balance sheet and uses its free cash flow to expand the portfolio and pay out dividends. Gold prices have been on an uptrend in 2025, aided by geopolitical reasons, and the potential for monetary policy easing. This rise in gold price will also boost the results of FNV in the coming quarters.
Franco-Nevada has an expected revenue and earnings growth rate of 32.2% and 39.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 30 days.
Newmont Corp.
Zacks Rank #2 Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. Moreover, NEM remains focused on improving operational efficiency and returning value to its shareholders.
Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North.
Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the last 30 days.
Kinross Gold Corp.
Zacks Rank #2 Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. These projects are expected to boost production and cash flow and deliver significant value. KGC is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production.
KGC’s Manh Choh project at Fort Knox is expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario also offers a promising long-term opportunity with substantial gold resources. Higher gold prices should also boost KGC’s profitability and drive cash flow generation.
Kinross Gold has an expected revenue and earnings growth rate of 15.3% and 63.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.7% over the last 30 days.
AngloGold Ashanti plc
Zacks Rank #1 AngloGold Ashanti operates as a gold mining company in Africa, Australia, and the Americas. AU primarily explores for gold, as well as produces silver and sulphuric acid as by-products. AU’s flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
AngloGold Ashanti has an expected revenue and earnings growth rate of 51.1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 41.1% over the last 30 days.
Harmony Gold Mining Co. Ltd.
Zacks Rank #1 Harmony Gold Mining is advancing several key development projects, including the Wafi-Golpu copper-gold deposit in Papua New Guinea and the Eva Copper project in Australia, which are expected to enhance production and expand its international footprint significantly.
The Golpu project is believed to be a game-changer for HMY. The acquisition of Eva Copper aligns with HMY’s goal of transitioning into a low-cost gold and copper producer. HMY is also making progress in reducing its debt levels and improving cash flow.
Harmony Gold Mining has an expected revenue and earnings growth rate of 1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22.2% over the last 30 days.
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Buy 5 Gold Stocks for Near-Term Gains on Rising Geopolitical Conflicts
Key Takeaways
Gold prices have been witnessing a northward journey in recent months, benefiting the stocks associated with yellow metal mining. Heightened geopolitical conflicts in the Middle-East between Israel and Iran and more than three years of war between Russia and Ukraine are the latest catalysts for both spot and future gold prices.
On May 5, the spot gold price touched $3,415.57/ounce and is currently hovering around $3,400/ounce. Consequently, stock prices of several gold miners have jumped year to date. On June 16, President Donald Trump called for the immediate evacuation of Tehran, boosting the demand for the yellow metal, which is also known as a safe-haven investment.
At this stage, it should be fruitful to invest in gold mining stocks with a favorable Zacks Rank. Five such stocks are: Franco-Nevada Corp. (FNV - Free Report) , Newmont Corp. (NEM - Free Report) , Kinross Gold Corp. (KGC - Free Report) , AngloGold Ashanti plc (AU - Free Report) and Harmony Gold Mining Co. Ltd. (HMY - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Positive Catalysts for Gold
The northward journey of the yellow metal is likely to continue as the World Gold Council said that the gold mining industry is suffering from a scarcity of yellow metal deposits. On the demand side, several central banks of emerging economies are continuously buying the yellow metal. Central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low interest rate is beneficial for non-income-bearing bullions like gold.
Moreover, the use of gold in energy, healthcare and technology is rising. Therefore, an eventual demand-supply imbalance is likely to drive gold prices. Market participants are optimistic about the gold mining industry’s prospects. Giant investment bankers like Goldman Sachs and JP Morgan have forecasted that gold prices could climb to $4,000/ounce by 2026, suggesting continued bullish momentum.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Franco-Nevada Corp.
Zacks Rank #1 Franco-Nevada is well-poised to deliver strong earnings growth aided by increased contributions from its streaming agreements. Contribution from buyouts and a healthy portfolio of royalty and streaming agreements will aid the growth of FNV. Even though the company has been facing lower output due to the production halt in Cobre Panama, it is likely to be offset by FNV’s continued focus on cost management.
FNV has a debt-free balance sheet and uses its free cash flow to expand the portfolio and pay out dividends. Gold prices have been on an uptrend in 2025, aided by geopolitical reasons, and the potential for monetary policy easing. This rise in gold price will also boost the results of FNV in the coming quarters.
Franco-Nevada has an expected revenue and earnings growth rate of 32.2% and 39.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 30 days.
Newmont Corp.
Zacks Rank #2 Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. Moreover, NEM remains focused on improving operational efficiency and returning value to its shareholders.
Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North.
Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the last 30 days.
Kinross Gold Corp.
Zacks Rank #2 Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. These projects are expected to boost production and cash flow and deliver significant value. KGC is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production.
KGC’s Manh Choh project at Fort Knox is expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario also offers a promising long-term opportunity with substantial gold resources. Higher gold prices should also boost KGC’s profitability and drive cash flow generation.
Kinross Gold has an expected revenue and earnings growth rate of 15.3% and 63.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.7% over the last 30 days.
AngloGold Ashanti plc
Zacks Rank #1 AngloGold Ashanti operates as a gold mining company in Africa, Australia, and the Americas. AU primarily explores for gold, as well as produces silver and sulphuric acid as by-products. AU’s flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
AngloGold Ashanti has an expected revenue and earnings growth rate of 51.1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 41.1% over the last 30 days.
Harmony Gold Mining Co. Ltd.
Zacks Rank #1 Harmony Gold Mining is advancing several key development projects, including the Wafi-Golpu copper-gold deposit in Papua New Guinea and the Eva Copper project in Australia, which are expected to enhance production and expand its international footprint significantly.
The Golpu project is believed to be a game-changer for HMY. The acquisition of Eva Copper aligns with HMY’s goal of transitioning into a low-cost gold and copper producer. HMY is also making progress in reducing its debt levels and improving cash flow.
Harmony Gold Mining has an expected revenue and earnings growth rate of 1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22.2% over the last 30 days.