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Welcome to Episode #416 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to look at gold. Gold is making new all-time highs in 2024, including this week. Gold is up 32% in the last year, beating the S&P 500.
Investors can buy the physical gold in jewelry, coins, gold bars and even through an ETF. The SPDR Gold ETF (GLD - Free Report) owns the physical gold.
Launched on Nov 18, 2004, it is the oldest physical gold ETF. Since inception, the GLD has returned 8.74% annualized. The SPDR Gold ETF has an expense ratio of 0.4%.
There is also now a cheaper gold ETF, the SPDR Gold MiniShares ETF (GLDM) that has an expense ratio of just 0.1%.
But what if you want to own the gold miners, and not only the physical gold?
Screening for Gold Miners
The easiest way to find gold mining stocks is to screen using the Zacks Industry. Zacks has an industry for Mining with a sub industry of Gold.
There are currently 37 companies in the Gold Mining industry on Zacks.com. Only two are Zacks Rank #1 (Strong Buys) and four are Zacks Rank #2 (Buys).
Tracey pulled out two big cap miners and one that is in streaming and royalties.
Newmont Corp. is a big cap miner with operations in North America, Central and South America, Australia, and Africa. Newmont has a plan to divest of its non-core assets and recently announced it was selling assets in Australia for $475 million. It expects to make $2 billion from all of the planned non-core asset sales.
Shares of Newmont are up 39% over the last year and are hitting new 52-week highs. Earnings are expected to soar 75% in 2024 on higher gold prices. Newmont trades at 18.7x forward earnings.
Newmont is also shareholder friendly. It is paying a $1 per share base dividend and has a $1 billion share buyback plan.
Should a big gold miner like Newmont be on your short list?
Barrick Gold is a large cap global gold miner with growing exposure to copper. The company is shareholder friendly and has a performance dividend, currently yielding 1.9% and a $1 billion share buyback program.
Shares of Barrick Gold have jumped 28% in the last year. Earnings are expected to rise 45% this year. Barrick Gold is still attractively priced with a forward P/E of 16.9.
Should a gold and copper miner like Barrick Gold be on your short list?
Royal Gold is not a miner but is a streaming and royalty company. With a market cap of $9.3 billion, it markets itself as providing exposure to gold without the risks of owning a miner. Royal Gold’s portfolio has a 76% gold focus with silver and copper making up most of the remainder. It’s largest exposure is to Canada, with 35% and the United States, at 20%.
Shares of Royal Gold are up 29% in the last year and are at 52-week highs. Earnings are expected to rise 29% in 2024. It trades at a premium valuation, however, of 29x.
Royal Gold also pays a dividend, currently yielding 1.1%.
Should you consider a gold streaming company like Royal Gold?
What else do you need to know about gold stocks?
Tune into this week’s video podcast to find out.
[In full disclosure, Zacks Value Investor portfolio owns NEM.]
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3 Gold Stocks to Buy Right Now
Welcome to Episode #416 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to look at gold. Gold is making new all-time highs in 2024, including this week. Gold is up 32% in the last year, beating the S&P 500.
Investors can buy the physical gold in jewelry, coins, gold bars and even through an ETF. The SPDR Gold ETF (GLD - Free Report) owns the physical gold.
Launched on Nov 18, 2004, it is the oldest physical gold ETF. Since inception, the GLD has returned 8.74% annualized. The SPDR Gold ETF has an expense ratio of 0.4%.
There is also now a cheaper gold ETF, the SPDR Gold MiniShares ETF (GLDM) that has an expense ratio of just 0.1%.
But what if you want to own the gold miners, and not only the physical gold?
Screening for Gold Miners
The easiest way to find gold mining stocks is to screen using the Zacks Industry. Zacks has an industry for Mining with a sub industry of Gold.
There are currently 37 companies in the Gold Mining industry on Zacks.com. Only two are Zacks Rank #1 (Strong Buys) and four are Zacks Rank #2 (Buys).
Tracey pulled out two big cap miners and one that is in streaming and royalties.
3 Gold Stocks to Buy Now
1. Newmont Corp. (NEM - Free Report)
Newmont Corp. is a big cap miner with operations in North America, Central and South America, Australia, and Africa. Newmont has a plan to divest of its non-core assets and recently announced it was selling assets in Australia for $475 million. It expects to make $2 billion from all of the planned non-core asset sales.
Shares of Newmont are up 39% over the last year and are hitting new 52-week highs. Earnings are expected to soar 75% in 2024 on higher gold prices. Newmont trades at 18.7x forward earnings.
Newmont is also shareholder friendly. It is paying a $1 per share base dividend and has a $1 billion share buyback plan.
Should a big gold miner like Newmont be on your short list?
2. Barrick Gold Corp. (GOLD - Free Report)
Barrick Gold is a large cap global gold miner with growing exposure to copper. The company is shareholder friendly and has a performance dividend, currently yielding 1.9% and a $1 billion share buyback program.
Shares of Barrick Gold have jumped 28% in the last year. Earnings are expected to rise 45% this year. Barrick Gold is still attractively priced with a forward P/E of 16.9.
Should a gold and copper miner like Barrick Gold be on your short list?
3. Royal Gold Inc. (RGLD - Free Report)
Royal Gold is not a miner but is a streaming and royalty company. With a market cap of $9.3 billion, it markets itself as providing exposure to gold without the risks of owning a miner. Royal Gold’s portfolio has a 76% gold focus with silver and copper making up most of the remainder. It’s largest exposure is to Canada, with 35% and the United States, at 20%.
Shares of Royal Gold are up 29% in the last year and are at 52-week highs. Earnings are expected to rise 29% in 2024. It trades at a premium valuation, however, of 29x.
Royal Gold also pays a dividend, currently yielding 1.1%.
Should you consider a gold streaming company like Royal Gold?
What else do you need to know about gold stocks?
Tune into this week’s video podcast to find out.
[In full disclosure, Zacks Value Investor portfolio owns NEM.]