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Buy 5 Gold Miner Stocks as Yellow Metal Price Regains Some Lost Ground
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Key Takeaways
Gold prices recovered after a sharp drop, supported by geopolitical conflicts and a weak U.S. dollar.
AU, GFI, NGD, DRD and GROY are benefiting with gold prices rising nearly 15% year to date.
Central bank buying, supply constraints and rising industrial demand are boosting optimism for gold miners.
On Feb. 3, the price of spot gold recovered some lost ground after closing above $5,000/Oz. The price of the yellow metal declined sharply after hitting a record-high of nearly $5,600/Oz on Jan. 29. Heightened geopolitical conflicts and a declining U.S. dollar supported recovery. A weak U.S. dollar has increased demand for dollar-denominated bullion like gold.
Meanwhile, gold prices are witnessing a solid northward journey this year, benefiting stocks associated with the yellow metal mining. Year to date, gold price has risen nearly 15%. At this stage, it should be prudent to invest in gold mining stocks with a favorable Zacks Rank.
There were several reasons behind the surging gold prices. The central banks of many emerging economies have been buying the yellow metal. Central banks are bolstering their gold reserves following rising global debt levels, President Donald Trump’s trade and tariff-related uncertainties and lingering geopolitical risks.
Central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low market interest rate is beneficial for non-income-bearing bullions like gold.
Gold is gaining ground on a supply-demand imbalance. The World Gold Council said that the gold mining industry is suffering from a scarcity of deposits of the yellow metal. As gold miners have already explored prospective areas, new mines are very hard to identify. Gold mining is a lengthy process by nature. Moreover, slow-moving government clearances create hurdles for miners.
On the other hand, 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.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
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 the fully 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 22.5% and 52.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.9% over the last 30 days.
Gold Fields Ltd.
Zacks Rank #1 Gold Fields operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. GFI also explores for copper and silver deposits. GFI has an expected revenue and earnings growth rate of more than 100% each, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 9.2% over the last 30 days.
New Gold Inc.
Zacks Rank #1 New Gold is an intermediate gold mining company that engages in the development and operation of mineral properties in Canada. NGD primarily explores for gold, silver, and copper deposits. NGD has an expected revenue and earnings growth rate of 10.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 15.5% over the last 30 days.
DRDGOLD Ltd.
Zacks Rank #2 DRDGOLD is a medium-sized, unhedged gold producer with investments in South Africa and Australasia. Incontrovertibly bullish about its product, DRD recently concluded extensive refocusing of its gold interests. DRD sells gold and silver bullion. DRD is involved in provision care and maintenance services and the operation of a training center.
DRDGOLD has an expected revenue and earnings growth rate of 67.8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days.
Gold Royalty Corp.
Zacks Rank #2 Gold Royalty is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. GROY has an expected revenue and earnings growth rate of more than 100% each, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12.5% over the last seven days.
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Buy 5 Gold Miner Stocks as Yellow Metal Price Regains Some Lost Ground
Key Takeaways
On Feb. 3, the price of spot gold recovered some lost ground after closing above $5,000/Oz. The price of the yellow metal declined sharply after hitting a record-high of nearly $5,600/Oz on Jan. 29. Heightened geopolitical conflicts and a declining U.S. dollar supported recovery. A weak U.S. dollar has increased demand for dollar-denominated bullion like gold.
Meanwhile, gold prices are witnessing a solid northward journey this year, benefiting stocks associated with the yellow metal mining. Year to date, gold price has risen nearly 15%. At this stage, it should be prudent to invest in gold mining stocks with a favorable Zacks Rank.
Five such stocks are: AngloGold Ashanti plc (AU - Free Report) , Gold Fields Ltd. (GFI - Free Report) , New Gold Inc. (NGD - Free Report) , DRDGOLD Ltd. (DRD - Free Report) and Gold Royalty Corp. (GROY - 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.
Other Positives
There were several reasons behind the surging gold prices. The central banks of many emerging economies have been buying the yellow metal. Central banks are bolstering their gold reserves following rising global debt levels, President Donald Trump’s trade and tariff-related uncertainties and lingering geopolitical risks.
Central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low market interest rate is beneficial for non-income-bearing bullions like gold.
Gold is gaining ground on a supply-demand imbalance. The World Gold Council said that the gold mining industry is suffering from a scarcity of deposits of the yellow metal. As gold miners have already explored prospective areas, new mines are very hard to identify. Gold mining is a lengthy process by nature. Moreover, slow-moving government clearances create hurdles for miners.
On the other hand, 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.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
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 the fully 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 22.5% and 52.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.9% over the last 30 days.
Gold Fields Ltd.
Zacks Rank #1 Gold Fields operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. GFI also explores for copper and silver deposits. GFI has an expected revenue and earnings growth rate of more than 100% each, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 9.2% over the last 30 days.
New Gold Inc.
Zacks Rank #1 New Gold is an intermediate gold mining company that engages in the development and operation of mineral properties in Canada. NGD primarily explores for gold, silver, and copper deposits. NGD has an expected revenue and earnings growth rate of 10.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 15.5% over the last 30 days.
DRDGOLD Ltd.
Zacks Rank #2 DRDGOLD is a medium-sized, unhedged gold producer with investments in South Africa and Australasia. Incontrovertibly bullish about its product, DRD recently concluded extensive refocusing of its gold interests. DRD sells gold and silver bullion. DRD is involved in provision care and maintenance services and the operation of a training center.
DRDGOLD has an expected revenue and earnings growth rate of 67.8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days.
Gold Royalty Corp.
Zacks Rank #2 Gold Royalty is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. GROY has an expected revenue and earnings growth rate of more than 100% each, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12.5% over the last seven days.