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The Zacks Analyst Blog Highlights: AngloGold Ashanti, Kinross Gold, Barrick Gold and Kirkland Lake Gold

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For Immediate Release

Chicago, IL – August 14, 2019 – 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: AngloGold Ashanti Limited (AU - Free Report) , Kinross Gold Corporation (KGC - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Kirkland Lake Gold Ltd. (KL - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Edgy Markets Add to Gold’s Lure: 4 Stocks to Buy

Following a volatile last week, some investors might expect markets to see some smooth sailing this week. However, concerns surrounding global economic growth haven’t ebbed as the U.S.-China trade tussle continues. What’s more, protests in Hong Kong along with a crash in the Argentine peso drove investors to safe-haven assets like gold.

Spot gold prices in its last trading session ended 0.96% higher to close at $1511.2 per ounce. Needless to say, gold price has scaled to a six-year high of late. Given the upside potential of gold, investing in stocks that have significant exposure to this metal seems prudent.

Sino-U.S. Trade War Lingers

Markets have been plagued by U.S.-China trade tensions. Trump has said that a near-term deal with China on tariffs is unlikely anytime soon. He also said that he may cancelthe upcoming September meeting of Sino-American trade negotiators.

The United States might impose 10% tariffs on $300 billion of Chinese products starting Sep 1. The President aims to extract trade concessions from China on a wide range of issues, including intellectual property theft and currency manipulation.

Meanwhile, China let its currency value decline in order to make some Chinese goods cheaper and negate the effects of U.S. tariffs. China also retaliated by suspending purchases of American farm crops. And with the trade deal showing no signs of progress, the global economy is sure to get affected. In fact, financial behemoth The Goldman Sachs Group, Inc. (GS) has warned that the U.S.-China trade war is raising the chances of a near-term recession.

Hong Kong Unrest

Let’s admit that the Chinese government is now more concerned about Hong Kong than it is about trade. The Hong Kong international airport, known to be one of the busiest cargo airports, was shut down due to heavy protests. In fact, almost 5,000 protestors flooded the airport, leading to the cancellation of many flights.

Protestors are opposing a proposal that would allow extradition to mainland China, something that would threaten their judicial protection. Protestors also want Hong Kong leader Carrie Lam to officially withdraw the extradition bill. China, in the meanwhile, said that Hong Kong is now at a “critical juncture.”

What’s more threatening is that China may bring in the People’s Liberation Army to suppress the crowd. And with pro-democratic democracy protests in Hong Kong showing no signs of tapering off, the unrest has affected bourses worldwide, including the three main U.S. equity indexes.

Argentine Stock Market Tanks

Argentina, by the way, added to the tensions. The Argentine stock market recently slumped more than 30% after market-friendlyPresident Mauricio Macri lost the Presidential primaries by a much wider margin than expected.

While Macri and his running mate Miguel Angel Pichetto garnered 32.1% of the votes, their opposition center-left Alberto Fernandez, whose running mate is populist ex-leader Cristina Fernandez de Kirchner, received 47.7%.

Argentina’s peso shed almost 25% compared to the U.S. dollar. The election results also dragged Argentina’s euro-denominated bond down by nearly 9 cents, per data reported by Reuters. The yield, which has an inverse relation to the price, went up almost 3%.

Market Mayhem a Boon for Gold

With Trump not ready to strike any deal with China, and the turmoil in Hong Kong and Argentina adding to trade tensions, the appeal for gold as a safe-haven asset has increased. And as the bullion metal glitters,gold mining stocks have a fair chance to gain. We have, thus, selected four stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

AngloGold Ashanti Limited operates as a gold mining company. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 10.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 111.3% compared with the Mining - Gold industry’s estimated rally of 11.2%.

Kinross Gold Corporation engages in the acquisition, exploration and development of gold properties in the United States. The stock currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has climbed 100% in the past 60 days. The company’s expected earnings growth rate for the current year is 140%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Gold Corporation explores and develops mineral properties. The company primarily explores gold, copper, and silver deposits.The stock currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has advanced 17.9% in the past 60 days. The company’s expected earnings growth rate for the current year is 31.4%

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties.The stock currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 7.2% in the past 60 days. The company’s expected earnings growth rate for the current year is 63.2%.

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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