As spot gold prices surge to record highs, now could be the perfect time for investors to capitalize on the precious metal’s momentum by investing in top gold mining stocks.
Amid the recent economic uncertainties around inflationary pressure and fears of a recession, gold has seen its price soar, hitting a high of $2,587 as of press time. Over the past six months, the yellow metal has recorded gains of almost 20%, with the markets anticipating the next possible target at the $2,600 spot if bullish sentiments play out.
Spot gold one-day price chart. Source: TradingView
As gold reaches new highs, its price movement will likely impact related products such as stocks. Notably, the following two mining equities have rallied alongside the metal, presenting an ideal opportunity for investors seeking exposure to gold.
Newmont Corp. (NYSE: NEM)
Newmont (NYSE: NEM) ranks among the leading players in the gold mining scene. It has a diversified portfolio of operations in North America, South America, Australia, and Africa. The company offers stability courtesy of its consistent growth in recent years.
For instance, during Q2 2024, the mining firm’s revenue soared 64% year-over-year (YoY), hitting $4.4 billion. At the same time, net income surged 450% YoY, reaching $853 million.
The Denver-based firm could also see a jump in revenue, considering it plans to sell some of its non-core assets for a projected return of $2 billion.
Additionally, Newmont is particularly attractive for income-seeking investors since it is paying a $1 per share base dividend alongside a $1 billion share buyback plan.
Analysts have further offered a bullish outlook for the basic materials company. Specifically, on September 9, experts at Raymond James raised their FY2024 earnings per share (EPS) to $2.78, up from their initial projection of $2.73.
Regarding stock performance, NEM has surged in recent months in tandem with the soaring gold prices. Newmont’s stock closed at $53 in the latest trading session, gaining 1.5%. Over the course of 2024, NEM has delivered a 31% return, outperforming the broader market as gold prices continue to rise.
NEM year-to-date stock price chart. Source: Google Finance
Barrick Gold (NYSE: GOLD)
Barrick Gold (NYSE: GOLD), another mining titan, has, in recent years, increasingly focused on value creation and growth, which are reflected in the company’s returns.
Particularly, in Q2 2024, revenue surged 11% year-over-year to $3.16 billion while net income stood at $370 million, or 21% annual growth. What’s more, Zacks’s consensus for the company’s full-year estimates is $1.22 per share and revenue of $12.9 billion.
Investing in GOLD stock is seemingly enticing for dividend-seeking investors, considering that it yields 1.9% and has a $1 billion share buyback plan.
Barrick Gold also offers an impressive global reach, with production units in North America, Africa, and South America. This aspect guarantees continued production if there is a slowdown in one region.
On the other hand, the stock has recorded an impressive rally, aligning with the gains in the precious metal. As of press time, GOLD was trading at $20, with year-to-date gains of over 16%.
GOLD year-to-date stock price chart. Source: Google Finance
In conclusion, Newmont and Barrick Gold are ideal investment opportunities for those looking to capitalize on the current gold rally. The mining giants have recorded impressive revenue growth, generous dividends, and a bullish outlook from analysts, which position them well for further possible gains. However, investors should keep in mind the broader market trends and economic conditions that may influence the future performance of these stocks.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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