As market fears continue to rise, investors are turning to gold stocks for protection. Although historically criticized as just a commodity with no passive income, gold offers intrinsic value and carries physical mass that cannot disappear arbitrarily. Furthermore, mining enterprises offer convenience over carrying around bullion bricks. Here are seven gold stocks to buy amid heightened market fears:
- Wheaton Precious Metals (WPM) is a Canadian multinational firm that produces over 26 million ounces and sells over 29 million ounces of silver mined by other companies as a by-product of their main operations. Wheaton’s operational predictability and net margin rank in the top half of the industry, and it has a forward yield of 1.32%.
- Royal Gold (RGLD) specializes in the streaming business model and commands a royalty business. Royal Gold’s three-year revenue growth rate outpaces 63.35% of the competition, and it has a forward yield of 1.2%.
- Franco-Nevada (FNV) is another Canada-based gold royalty and streaming firm that benefits from predictability in its business. Franco-Nevada’s three-year revenue growth rate and EBITDA growth rate outpace 82.76% and 78.1% of the industry, respectively. Unfortunately, the forward yield here is only 0.95%.
- Newmont (NEM) owns the distinction of being the world’s largest gold-mining corporation. Newmont’s forward yield is 3.32%, which ranks above the materials sector’s average yield of 2.82%.
- Barrick Gold (GOLD) produces gold and copper and offers flexibility among gold stocks to buy. Barrick’s operating margin outpaces 85% of the competition, and it has a forward yield of 2.21%.
- Centerra Gold (CGAU) owns and operates the Mount Milligan copper-gold mine in British Columbia, Canada, and the Öksüt gold mine in Turkey. Centerra enjoys a solid balance sheet, and the market prices CGAU at a trailing book multiple of 0.77.
- Sibanye Stillwater (SBSW) is based in resource-rich South Africa and commands the greatest upside potential among gold stocks to buy here. However, it’s also one of the riskiest enterprises that you can engage in, meaning investors should take necessary precautions. Sibanye’s three-year revenue growth rate and net margin beat out 79.19% and 76% of the industry, respectively, and it has a consensus moderate buy rating from Wall Street analysts with over 48% upside potential.
Happy Trading,
The Team