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Things are looking dicey.
Geopolitical tensions are rising, and the stock market feels like its in free-fall. Considering that, safe have gold miner stocks should be a no-brainer on your buy list right now.
Gold miner stocks have been beaten up this year, but don’t expect these stocks to stay down for long. Analysts expect each of the following stocks to rise at least 55% over the next year.
Here’s what you need to know about these three stocks.
Iamgold (NYSE: IAG)
When the precious metals and commodities sector took a dive in 2013, many companies folded. But not Iamgold Corp (NYSE: IAG). Instead, the company rolled up its sleeves and went to work.
All unnecessary expenses were slashed. Cash flow turned positive as Capex fell sharply. These moves saw IAG return to profitability in 2016, and then the company had a very good 2017.
The stock is currently down -47% year-to-date. The stock had a positive run from mid-March through May, but when gold took a turn in August, IAG stock sunk right along with it. But don’t expect the stock to stay down for long, especially considering the current conditions.
The average analyst price target for IAG is $6.67, indicating possible upside of 117% over the next twelve months.
Agnico Eagle Mines (NYSE: AEM)
This top-ten miner has done something that few of its rivals can claim to have done: it has outperformed the price of gold consistently for years.
In the last two decades, Agnico’s (NYSE: AEM) stock price has risen at a compound annual rate of 12.5% compared to just 8.2% for the price of gold. AEM outperforms gold by taking a different approach from other miners.
Unlike its peers who focus on issuing huge amounts of new shares to buy companies that have operating mines that will boost overall production immediately, Agnico is focused on purchasing mines that are in earlier stages of development. Because of this, the company isn’t forced to pay a premium for a mine’s current production which helps to ensure it can keep its overall acquisition costs low.
Agnico also boasts pretty solid fundamentals, with its operating and net margins above average compared to other gold stocks. In the past four years, the company has also demonstrated revenue growth.
The stock is down nearly -25% so far this year, though the stock will likely climb as the gold market improves.
Analysts’ average twelve-month price target for AEM is $54.45, suggesting possible upside of 56%.
Kinross Gold (NYSE: KGC)
This company was one of the top performing gold mining stocks in 2017, but Kinross Gold (NYSE: KGC) is down substantially so far this year, and is currently down nearly -37% year-to-date. Though this bearishness seems overly exaggerated.
With a market cap of more than $3 billion, Kinross is one of the largest gold stocks on the market.
Its portfolio includes assets in Brazil, Chile, Ghana, Mauritania, Russia, and the U.S. And in addition to the company’s asset diversification, it also offers relative financial stability and has been chipping away at its long-term debt. Kinross has also been ridding itself of excess fat and returned to profitability last year.
Analysts’ average price target for KGC is $4.25, indicating possible upside of 55.68% over the next year.