36.02 +0.24 (0.67%)
Pre-Market: 5:01AM EDT
|Bid||36.00 x 2200|
|Ask||36.06 x 1000|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||22.52%|
|Beta (3Y Monthly)||0.10|
|Expense Ratio (net)||0.54%|
Wall Street suffered its worst daily drop since late August and was off to the worst start to a quarter in about a decade with two consecutive days of decline.
In the last 12 months, Kinross Gold Corporation (NYSE:KGC) stock has surged by more than 80%. The upside in KGC stock has been backed by strong fundamental developments. Comparatively, the VanEck Vectors Junior Gold Miners ETF (NYSEArca:GDXJ) is up 52% in the same period. Even after the sharp rally, I believe that the uptrend has just started for KGC.Source: Shutterstock At this point, I am recommending investors accumulate positions in Kinross Gold with an initial investment horizon of 12-24 months.My recommendation on KGC stock is predicated on both industry and company specific factors that back my bullish view. Kinross stock, at a 6.34% weighting, is the largest of 67 holdings in the GDXJ mining stocks portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bullish on GoldIt is important to understand that movement in gold mining stocks is closely linked to trend in gold prices. It is therefore important to discuss the likely trend for the precious metal before talking about company specific factors.Gold is currently trading at $1,536 and is higher by 20% for year-to-date 2019. The break-out in gold prices has come after nearly five years of sideways-to-lower movement. I believe this was a consolidation zone for gold. Levels of $1,200 to $1,300 an ounce can be considered as a region of strong technical support.I am of the opinion that gold will sustain at higher levels and can potentially break all-time highs in the next 12-24 months.The most important reason for this view is global economic weakness. For August 2019, the manufacturing sector in the United States contracted for the first time in three years. China has also reported lowest GDP growth in almost three decades. Concerns of weak growth and potential recession loom at large even for Europe. Amidst these economic concerns and the ongoing trade war, the precious metal is likely to outperform. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Consider the following three factors:The U.S. is already pursuing expansionary monetary policy and as money supply increases, the dollar is likely to trend lower. This is positive for gold.With economic concerns, there is increasing risk-off trade and investors seek to go overweight on Treasuries and gold. The precious metal is likely to see higher investment demand.Central banks of Russia and China have been aggressively buying gold to diversify reserves. With weak economic growth, expansionary monetary policies and geo-political tensions, demand for gold from central banks will sustain.In sum, the global economic scenario is perfect for gold to trend higher after prolonged consolidation. Kinross Gold stock will move in-sync with gold prices. EBITDA Margin Expansion and Cash Flow GrowthFor the second quarter of 2019, KGC reported average realized gold price of $1,307 an ounce. For the same period, the all-in-sustaining-cost (AISC) was $918 an ounce. This translated into an adjusted operating cash flow of $287.7 million for the quarter.With gold already at $1,530 an ounce, the realized price will significantly increase in the coming quarters with the AISC remaining largely the same. The positive implication is EBITDA margin expansion and growth in operating cash flows.If gold sustains above $1,500 an ounce (very likely), annualized operating cash flow can be in the region of $1.5 to $1.8 billion. As Kinross Gold Corporation generates positive free cash flows, the stock is likely to trend higher.From the perspective of AISC, Kinross has agreed to acquire Chulbatkan, a development project. The asset has an indicated resource of approximately 3.9 million ounces of gold. Importantly, the company expects AISC for the project at $550 an ounce.Therefore, as the project commences production in the coming years, the company-wide AISC will decline and EBITDA margin expand.As a matter of fact, Kinross has a relatively attractive AISC for American and Russian assets. The AISC for West Africa is higher. I expect inorganic growth to be focused on assets in Russia and the U.S. Strong Fundamentals for Aggressive GrowthAs gold trends higher, it makes more sense to ramp-up production for higher realized gold price. KGC has the advantage of a strong balance sheet to pursue organic and inorganic growth. * 7 Best Tech Stocks to Buy Right Now As of June 2019, the company had total liquidity buffer of $1.9 billion. With likely expansion in free cash flow in the coming quarters, I expect the liquidity to swell and net debt to decline.In addition, I expect stock re-rating if gold continues to trade above $1,500 an ounce. This re-rating expectation is based on potential dividends as free cash flow swells. Final Words on KGC StockKinross Gold Corporation stock has surged in 2019 with gold trending higher, event in the 17.1% gain for the largest physical gold exchange-traded fund, SPDR Gold Trust (NYSEArca:GLD). The company is also on track to meet 2019 guidance on production and that has kept the KGC stock momentum bullish.The key trigger for sustained stock upside is EBITDA margin expansion and cash flow growth in the coming quarters. In addition, I expect relatively aggressive investments to prop-up production growth in 2020 and 2021.The factors discussed make KGC stock an attractive buy even after the sharp rally. A 5% to 10% correction on profit booking is entirely likely and I see that as an opportunity to accumulate the stock.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Kinross Gold Corporation Stock Seems Ready for a Long-Term Uptrend appeared first on InvestorPlace.
Gold’s short-term direction is down, according to contrarian analysis. This forecast has nothing to do with Thursday’s big drop in bullion’s price. Consider the average recommended gold (GC00)(GCU19) exposure level among several dozen short-term gold timers I monitor on a daily basis (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI).
When global markets are wracked with turmoil, investors often turn to that old standby: Gold, or a gold ETF. Like VanEck Vectors Junior Gold Miner ETF.
Trade has played foul on Wall Street throughout August, sending the broad indices into a tailspin, thus compelling investors to flock to gold as a great store of value and hedge against market turmoil.
Precious metals miner sector-related ETFs rallied on Monday as investors turned to safe-haven plays like gold and silver to stick out the sudden volatility triggered by trade war fears. Among the best ...
Gold miner stocks and sector-related ETFs surged late Thursday as investors turned to the precious metal in the wake of President Donald Trump’s sudden threats of additional tariffs on Chinese goods. The ...
Bulls continued to rage higher in July powered by hopes of easing money policies and positivity surrounding the trade deal. We have highlighted five such ETFs that have accumulated handsome gains in July .
The VanEck Vectors Gold Miners ETF (NYSEArca: GDXJ) and VanEck Gold Miners ETF (NYSEArca: GDX), two of the dominant names among gold miners exchange traded funds, are up an average of about 22% year-to-date. ...
The VanEck Vectors Gold Miners ETF (GDXJ) and VanEck Gold Miners ETF (GDX) , two of the dominant names among gold miners exchange traded funds, are up an average of 12.7% this month, but some market observers believe more upside could be in the cards for these funds if US/China trade talks progress. Gold has also found greater support from safe-haven demand and a more dovish outlook from major global central banks, notably the Federal Reserve’s shift toward potential interest rate cuts to combat slowing growth. “Metal prices and mining equities have been at the mercy of trade headlines all year, and business fundamentals have a taken a back seat,” reports Mining.com.
Gold miner stocks and sector-related exchange traded funds led the charge on Tuesday as gold strengthened on growing global trade tensions and concerns over economic growth. Among the best-performing non-leveraged ETFs of Tuesday, the VanEck Vectors Gold Miners ETF (GDXJ) rose 4.1% and VanEck Gold Miners ETF (GDX) gained 3.0%. Meanwhile, Comex gold futures were 1.4% higher to $1,408.4 per ounce on Tuesday.
Gold finally has its shine back. Yes, some folks may have abandoned gold in favor of digital gold -- bitcoin has surged several hundred percent recently. But the world's favorite precious metal is sparkling again too. Recently, the price of gold topped $1,400/oz, marking its highest level in more than five years. Gold's move has come with surprising speed as well, it's up nearly 10% over the past month.Not surprisingly, with gold surging, investors are starting to come back to a long dormant group of companies: mining stocks. Now, to be fair, most of these gold stocks are rightly ignored. As the famous adage goes, a gold mine is a hole in the ground with a liar at the top. That's true of far too many small prospecting companies.Incredibly, over the past 10 years, even with the price of gold up overall, mining stocks have gotten wrecked. The main sector ETF, VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) has lost nearly half its value over the past decade. Meanwhile, the more speculative smaller gold companies fund, VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) has lost a catastrophic 67% of its value. Again, that's during a time when the price of gold went up on net, and stocks in general soared.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 F-Rated Stocks to Sell for Summer That means that it is most important to stick to quality operations when picking your gold stocks. Unlike many sectors, mediocrity generally isn't enough to drive positive performance in gold, even if the overall conditions are relatively decent. With all that in mind, what should you buy and what should avoid as gold stocks take off again? Barrick Gold (GOLD)Source: (C)iStock.com/TomasSereda One good rule for buying into an unloved sector is to buy one of the industry leaders, as long as it has a decent balance sheet. Newmont (NYSE:NEM) has been in a terrible funk since it made its questionable purchase of Goldcorp. Newmont stock has barely moved since the gold stock rally got going. That leaves Barrick Gold (NYSE:GOLD) as the next best option. With its $30 billion market cap and operations spanning many countries, Barrick is one of the world's leading diversified miners.In fact, by at least one metric, Barrick is the world's powerhouse gold mining firm. It has five of the world's ten Tier 1 mines -- defined as a mine that produces 500,000 ounces or more per year, has 10+ years of reserves left, and operates at or below the median global cost of mining. This huge number of long-life world class assets ensures the Barrick is here to stay. Regardless of where the price of gold goes, Barrick will be mining lots of gold -- profitably -- for many years to come.The company has a lot to offer investors in 2019 specifically, as well. In its first quarter, for example, Barrick showed nice leverage to the price of gold despite it having lower-cost mining operations. For the quarter, Barrick managed to boost cash from operations 27% while doubling earnings as gold production rose 8%. That's some solid results. At $16/share, GOLD stock is still well short of the $22 level it hit in 2016 on the last wave of gold stocks momentum. If gold can keep its momentum, GOLD stock should be able to revisit $22 in a hurry. Gold Stocks To Buy: Franco-Nevada (FNV)Source: Shutterstock Buying industry leaders is a good way to catch a sector as it comes out of a long slumber. However, thinking back to how poorly mining stocks in general have performed, there's another important thing to consider. That's the different between gold streaming stocks and gold mining stocks. The gold streamers act as a sort of specialty finance shop, lending money to the mining companies, and getting a cut of ensuing gold production at a (usually) fixed price.The gold streamers take on significant risks including gold price variation, delays in production, and bankruptcy of the counterparty mining firm. In return, however, the gold streamers tend to earn fat returns. Over the past decade, while mining stocks as a group lost half their value or more, streamers prospered. For example, Franco-Nevada (NYSE:FNV) quadrupled, and rival streamer Royal Gold (NASDAQ:RGLD) soared 150% over the past 10 year period while mining stocks plummeted. * 7 Stocks to Buy for the Same Price as Beyond Meat Franco-Nevada specifically, over the years, has built a huge pool of streaming assets across gold and other things. Last year, it sold nearly 350,000 ounces of gold, along with nearly 100,000 gold equivalent ounces of other metals including silver and platinum. For the year, it produced $139 million in net income off of $653 million in revenue, generating a robust profit margin. It also pays a modest dividend to shareholders -- a rarity in the gold stocks industry -- to reward its owners. Gold Stocks To Buy: Sandstorm Gold (SAND)Source: Shutterstock While Barrick Gold and Franco-Nevada will offer big upside if and when gold stocks rally more, the list wouldn't be complete without at least one potential home run pick. Enter Sandstorm Gold (NYSEAMERICAN:SAND). While the ticker may be SAND, Sandstorm is much more precious than that.The company is attractive because it is a small streaming company with several big deals in the pipeline. At the moment, it has streams on 22 operating assets, which, at a gold price of just $1,300/oz throw off more than $60 million a year in cash flow. By 2022, as new contracted assets come into play, Sandstorm's cash flow is projected to double to around $130 million per year -- again using that conservative $1,300/oz gold price number.Now, consider that Sandstorm's market cap is just $1 billion. That's something like just 7x cash flow once its new mine streams come online. Now factor it significantly higher gold prices and things get even more exciting. SAND stock is already up 50% since its November low. It could run a lot more than that if and when the gold stocks rally kicks it into next gear.At the time of this writing, Ian Bezek owned SAND and FNV stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks Compare Brokers The post 3 Gold Mining Stocks Help You Dig Up Profits appeared first on InvestorPlace.
In the world of physically backed gold ETFs, the SPDR Gold Shares (GLD) is the world's largest. As is often the case when gold declines, shares of gold miners overshoot the commodity's decline. The VanEck Vectors Gold Miners ETF (GDX), the largest gold miners ETF, is down 20.9% this year.
The VanEck Vectors Gold Miners ETF (GDXJ) , one of the largest gold miners exchange traded funds, is up more than 8% month-to-date, but some market observers believe there is plenty of value left in the resurgent gold miners group. The VanEck Gold Miners ETF (GDX) , the largest gold miners ETF, is up more than 12% this month. GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies.
There are 11 sectors represented in the S&P 500 with weights ranging from 2.81% at the bottom to 21.45% at the top. Guess which group resides at the bottom? Materials.That is not the only point underscoring the materials sector's diminutive status. The Materials Select Sector SPDR ETF (NYSEARCA:XLB), the largest materials exchange-traded fund, holds just 28 stocks and the Dow Jones Industrial Average is home to just one materials stock -- Dow Inc. (NYSE:DOW).XLB "seeks to provide precise exposure to companies in the chemical, construction material, containers and packaging, metals and mining, and paper and forest products industries," according to State Street.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSize aside, there are plenty of opportunities to be had with materials ETFs and investors may want to consider getting in while the getting is good because the sector is on fire in the first half of June."In fact, the materials group, the sector that tends to be the most sensitive to global economic growth expectations, is on track for its best monthly gain since October of 2015, when it soared 13.45%, according to Dow Jones Market Data," reports MarketWatch. * 7 Top-Rated Biotech Stocks to Invest In Today For investors looking to embrace a small sector with big potential, here are some materials ETFs to consider. VanEck Vectors Junior Gold Miners ETF (GDXJ)Source: Shutterstock Expense Ratio: 0.53%, or $53 annually per $10,000 investedThe VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) is one of the largest gold miners funds, meaning it is also a materials ETF and a volatile one at that. GDXJ has a three-year standard deviation of 30.50%, roughly triple the comparable metric on the S&P 500. Indeed, this materials ETF is not for the faint of heart and it has a tendency to overshoot gold's price action in either direction.Fortunately, the current climate sets up well for gold, as highlighted by GDXJ's month-to-date gain of nearly 9%."If you look at the GDXJ [VanEck Vectors Junior Gold Miners ETF] and go back to 2010, the adjusted return in Canadian dollars is down about 85%. Then if you look deeper … at the really junior juniors, which aren't even in these ETFs, it's even more so. We have an industry where you've lost 80% to 90% of the value -- plus," said Jonathan Goodman, executive chairman of Dundee Corp., in an interview with Kitco News.Another catalyst could boost this materials ETF in the second half of the 2019: the Federal Reserve. If the Fed lowers interest rates, gold almost certainly rallies in response, likely sending GDXJ and miners ETFs higher along the way. Invesco MSCI Global Timber ETF (CUT)Source: Shutterstock Expense Ratio: 0.55%Among materials ETFs, timber funds -- all two of them -- often go overlooked. The Invesco MSCI Global Timber ETF (NYSEARCA:CUT), which tracks the MSCI ACWI IMI Timber Select Capped Index, gives investors nuanced materials exposure with a decent yield.CUT's underlying index "measures the performance of securities engaged in the ownership and management of forests, timberlands and production of products using timber as raw materials," according to Invesco.CUT holds 77 stocks, giving it a significantly larger roster than many traditional materials ETFs and some of that size is attributable to the fund being a global materials ETF. Eleven countries are represented in this materials ETF with the U.S. commanding a weight of 42%. Of the other 10 countries found in this materials ETF, eight are developed markets. * The 10 Best Index Funds to Buy and Hold Nearly 56% of CUT's components are classified as value stocks and the materials ETF reflects that value proposition with a price-to-earnings ratio of just 12.82x, a healthy discount relative to broader domestic equity benchmarks. SPDR S&P Mining & Materials ETF (XME)Source: Shutterstock Expense Ratio: 0.35%The SPDR S&P Mining & Materials ETF (NYSEARCA:XME) is an equal-weight materials ETF with diverse exposure to miners of several industrial and precious metals.XME's underlying index provides exposure to "the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel," according to State Street.In other words, XME is exactly the type of fund that can be stung by tariffs. That is exactly what has happened to this materials ETF. XME is down 11.41% in the second quarter and resides more than 31% below its 52-week high, putting the fund deeply into a bear market.XME is also volatile as far as materials ETFs are concerned. Over the past three years, XME's annualized volatility is 26.20% compared to 15.60% for the aforementioned XLB. Problem is, XME often does not justify that increased volatility because it can trail traditional materials ETFs by wide margins.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Materials ETFs to Help Build Your Portfolio appeared first on InvestorPlace.
Another day, another tweet. President Trump's latest salvo, aimed at Mexico this time, is sending the stock market down but boosting gold prices.