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The Zacks Analyst Blog Highlights: Northern Dynasty Minerals, Vista Gold and Kirkland Lake Gold

Zacks Equity Research
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For Immediate Release

Chicago, IL – August 22, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Northern Dynasty Minerals, Ltd. NAK, Vista Gold Corporation VGZ and Kirkland Lake Gold Ltd. KL.

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Here are highlights from Tuesday’s Analyst Blog:

Falling Gold Prices Put These 3 Stocks in Focus

Gold prices have followed a downward trend since the beginning of this year, primarily due to lower demand. In the first two quarters, demand for gold bars, gold-backed exchange traded funds (ETFs) and gold jewelry was particularly low, leading to lowest global demand for gold in the first half of a year since 2009.

Spot gold price has been falling sharply since its last high of $1,354.95 per ounce on Jan 25. The decline can also be attributed to the strengthening dollar, thanks to the U.S.-China trade war and the recent U.S. sanctions on a number of nations.

However, December gold futures and spot gold were up 0.8% and 0.2%, respectively, on Aug 20. The sharp reversal of the yellow metal after a steep decline perhaps indicates investors’ perception that the metal has achieved its bottom level. Therefore, bargain-hunting investors could take a look at some gold stocks that have solid potential to rebound.

Before we handpick the stocks based on our proprietary methodology, let’s take a look at the broader picture of the gold market.

Demand and Supply Leading to Price Drop

According to a report by the World Gold Council, demand of 964 tons in the April-June quarter declined 4% from the year-ago period.

Gold supply in the same quarter rose by 3% to 1,120 tons from 1,086 tons year over year, further contributing to the price plunge.

Global Geopolitical Tensions Could Boost Gold Prices

Though high local prices in Europe, India and Turkey might keep demand for gold low in these regions, the ongoing geopolitical tensions with the United States should elevate demand in China and Iran.  

Moreover, with rising oil prices, demand for gold might get a boost, as managers of oil companies usually buy gold as a protective hedge when oil prices go up. Since the ongoing tensions in the Middle East could further increase crude oil prices, demand for gold is expected to rise.

Gold Stocks to Watch

Northern Dynasty Minerals, Ltd. owns the rights to completely buy the Pebble gold-copper-molybdenum porphyry deposit. Northern Dynasty has the largest deposits of gold and copper in North America. The company carries a Zacks Rank #2 (Buy).

Vista Gold Corporation is a gold project developer. The company holds a Zacks Rank #2 and has its principal asset in Northern Territory, Australia known as Mt Todd Gold Project.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kirkland Lake Gold Ltd. is headquartered in Toronto, Canada and explores and mines minerals. The company carries a Zacks Rank #3 (Hold) and focuses on gold assets primarily. Over the last 30 days, Kirkland Lake Gold has witnessed an upward revision of 2.8% in its Zacks Consensus Estimate for the current year.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Vista Gold Corporation (VGZ) : Free Stock Analysis Report
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