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Gold Rally Continues: 3 Top Ranked Mining Stocks to Buy Now
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The bull market in gold is well underway, yet surprisingly few investors seem to be paying attention. If anything, there are more doubters out there today, with traders predicting a sharp reversal. However, those closely watching the market know that gold prices have been on a steady climb over the past two years. In fact, over this period, gold has outperformed the S&P 500, delivering a return of nearly 60%.
With considerable geopolitical uncertainty and central banks around the world adding to their gold reserves, the metal’s appeal as a hedge against uncertainty remains strong. For investors looking to capitalize on this rally, mining stocks are an attractive option, particularly those with a Zacks Rank #1 (Strong Buy) rating. Below, we highlight three top-ranked mining stocks, Idaho Strategic Resources ((IDR - Free Report) ), Barrick Gold ((GOLD - Free Report) ) and Iamgold ((IAG - Free Report) ), which are well-positioned to benefit from the continued rise in gold prices.
Image Source: TradingView
Idaho Strategic Resources: Momentum and Earnings Growth
Idaho Strategic Resources is a small-cap mining company that has been on a tear, with its stock price up an impressive 135% year-to-date. Even more compelling is the recent earnings revision trend—over the last two months, fiscal year 2024 earnings estimates have surged by 167%. This shows that analysts have dramatically increased their expectations for the company's future profitability, reflecting optimism about its growth prospects.
The company has also shown exceptional long-term performance, with its stock price increasing by 550% in the last five years. Despite this impressive run, Idaho Strategic Resources still trades at an attractive valuation. It is currently trading at 20.7x one-year forward earnings, which is below its five-year median of 27x, suggesting potential value for investors. This multiple is also just slightly above the industry average of 18.4x, making IDR an appealing blend of growth and reasonable valuation.
Image Source: Zacks Investment Research
Barrick Gold: A Leading Player with Strong Fundamentals
Barrick Gold is one of the most well-known names in the mining industry, offering investors exposure to gold through a well-established and globally diversified company. With a Zacks Rank #1 (Strong Buy), Barrick has consistently demonstrated solid financial performance, making it a top choice for investors seeking stability alongside the growth potential of rising gold prices.
Earnings estimates have shot higher in the last two months, with FY24 estimates rising by 8.6% and FY25 by 11.1%. Earnings at Barrick Gold are forecast to grow at an impressive 33% annually over the next three to five years, while the company remains fairly valued. At 16.1x forward earnings it has a PEG ratio of just 0.5.
In addition to its earnings growth forecasts, Barrick’s financial health is solid, with strong cash flow generation and approximately $4 billion in cash reserves. The company has returned about $700 million to shareholders through dividends and launched a $1 billion share repurchase program. Barrick's efforts to reduce debt have also been effective, with the debt-to-capital ratio improving to below the industry average.
Image Source: Zacks Investment Research
Iamgold: Huge Potential
Iamgold is a mid-tier gold mining company with operations in North America, South America, and West Africa, known for its diverse production portfolio and focus on sustainable mining practices. The company is currently developing its flagship Côté Gold project in Ontario, which is set to become one of the largest gold mines in North America and significantly enhance its production capabilities.
Iamgold has been experiencing a strong upward trend in earnings revisions, highlighting growing confidence from analysts about its future performance. Over the past two months, FY24 earnings estimates have been revised upwards by 45.5%, and FY25 by 24.1%. Sales growth forecasts are equally impressive, with FY24 expected to grow by 56.7% and FY25 by 20.5%. Despite these bullish projections, IAG is trading at a one-year forward earnings multiple of just 10.9x, significantly below the industry average of 18.4x and well under its five-year median of 16.4x, suggesting it offers attractive value at current levels.
A key differentiator for Iamgold is its ongoing focus on the development of its flagship Côté Gold project in Ontario, Canada. Expected to be one of the largest gold mines in North America, Côté Gold has the potential to significantly boost IAG’s production capacity, targeting commercial production by early 2025.
Image Source: Zacks Investment Research
Should Investors Buy Gold Mining Stocks?
The ongoing gold rally shows no signs of slowing, and mining stocks like Idaho Strategic Resources, Barrick Gold, and Iamgold offer investors distinct opportunities to capitalize on this trend. Gold usually provides an uncorrelated source of returns, often moving independently from traditional assets like stocks and bonds, which helps diversify a portfolio.
Additionally, as a hedge against economic uncertainty, currency devaluation, and geopolitical risks, gold remains a valuable asset during periods of market volatility and inflation—making these mining stocks a compelling play for investors.
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Gold Rally Continues: 3 Top Ranked Mining Stocks to Buy Now
The bull market in gold is well underway, yet surprisingly few investors seem to be paying attention. If anything, there are more doubters out there today, with traders predicting a sharp reversal. However, those closely watching the market know that gold prices have been on a steady climb over the past two years. In fact, over this period, gold has outperformed the S&P 500, delivering a return of nearly 60%.
With considerable geopolitical uncertainty and central banks around the world adding to their gold reserves, the metal’s appeal as a hedge against uncertainty remains strong. For investors looking to capitalize on this rally, mining stocks are an attractive option, particularly those with a Zacks Rank #1 (Strong Buy) rating. Below, we highlight three top-ranked mining stocks, Idaho Strategic Resources ((IDR - Free Report) ), Barrick Gold ((GOLD - Free Report) ) and Iamgold ((IAG - Free Report) ), which are well-positioned to benefit from the continued rise in gold prices.
Image Source: TradingView
Idaho Strategic Resources: Momentum and Earnings Growth
Idaho Strategic Resources is a small-cap mining company that has been on a tear, with its stock price up an impressive 135% year-to-date. Even more compelling is the recent earnings revision trend—over the last two months, fiscal year 2024 earnings estimates have surged by 167%. This shows that analysts have dramatically increased their expectations for the company's future profitability, reflecting optimism about its growth prospects.
The company has also shown exceptional long-term performance, with its stock price increasing by 550% in the last five years. Despite this impressive run, Idaho Strategic Resources still trades at an attractive valuation. It is currently trading at 20.7x one-year forward earnings, which is below its five-year median of 27x, suggesting potential value for investors. This multiple is also just slightly above the industry average of 18.4x, making IDR an appealing blend of growth and reasonable valuation.
Image Source: Zacks Investment Research
Barrick Gold: A Leading Player with Strong Fundamentals
Barrick Gold is one of the most well-known names in the mining industry, offering investors exposure to gold through a well-established and globally diversified company. With a Zacks Rank #1 (Strong Buy), Barrick has consistently demonstrated solid financial performance, making it a top choice for investors seeking stability alongside the growth potential of rising gold prices.
Earnings estimates have shot higher in the last two months, with FY24 estimates rising by 8.6% and FY25 by 11.1%. Earnings at Barrick Gold are forecast to grow at an impressive 33% annually over the next three to five years, while the company remains fairly valued. At 16.1x forward earnings it has a PEG ratio of just 0.5.
In addition to its earnings growth forecasts, Barrick’s financial health is solid, with strong cash flow generation and approximately $4 billion in cash reserves. The company has returned about $700 million to shareholders through dividends and launched a $1 billion share repurchase program. Barrick's efforts to reduce debt have also been effective, with the debt-to-capital ratio improving to below the industry average.
Image Source: Zacks Investment Research
Iamgold: Huge Potential
Iamgold is a mid-tier gold mining company with operations in North America, South America, and West Africa, known for its diverse production portfolio and focus on sustainable mining practices. The company is currently developing its flagship Côté Gold project in Ontario, which is set to become one of the largest gold mines in North America and significantly enhance its production capabilities.
Iamgold has been experiencing a strong upward trend in earnings revisions, highlighting growing confidence from analysts about its future performance. Over the past two months, FY24 earnings estimates have been revised upwards by 45.5%, and FY25 by 24.1%. Sales growth forecasts are equally impressive, with FY24 expected to grow by 56.7% and FY25 by 20.5%. Despite these bullish projections, IAG is trading at a one-year forward earnings multiple of just 10.9x, significantly below the industry average of 18.4x and well under its five-year median of 16.4x, suggesting it offers attractive value at current levels.
A key differentiator for Iamgold is its ongoing focus on the development of its flagship Côté Gold project in Ontario, Canada. Expected to be one of the largest gold mines in North America, Côté Gold has the potential to significantly boost IAG’s production capacity, targeting commercial production by early 2025.
Image Source: Zacks Investment Research
Should Investors Buy Gold Mining Stocks?
The ongoing gold rally shows no signs of slowing, and mining stocks like Idaho Strategic Resources, Barrick Gold, and Iamgold offer investors distinct opportunities to capitalize on this trend. Gold usually provides an uncorrelated source of returns, often moving independently from traditional assets like stocks and bonds, which helps diversify a portfolio.
Additionally, as a hedge against economic uncertainty, currency devaluation, and geopolitical risks, gold remains a valuable asset during periods of market volatility and inflation—making these mining stocks a compelling play for investors.