|Bid||34.28 x 4000|
|Ask||34.29 x 1800|
|Day's Range||33.77 - 34.35|
|52 Week Range||25.91 - 35.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.18|
|Expense Ratio (net)||0.54%|
Gold's recovery started months before the stock market's, and two gold mining ETFs are rallying toward 52-week highs and above buy points.
The yellow metal has been on fire, with gold hitting multi-month highs and threatening to run to new 52-week highs should its recent momentum continue. As such, gold stocks have been on the move as well, pushing higher as its underlying product gains in value. * The 10 Best Cheap Stocks to Buy Right Now To no surprise then, the SPDR Gold ETF (NYSEARCA:GLD) continues to climb as well, a trade we outlined the other day as part of our daily Top Stock Trades note. Should it hold up over support, the GLD can certainly press higher and threaten to make a much larger breakout. Let's look at three of the best gold stocks that could climb as a result.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Gold Mining ETFs Click to EnlargeThe most direct way to play gold is through physical bullion. Meaning that investors can head to their local coin and metals dealer or an online site that sells gold coins, bars and bullion. That's the most obvious and direct way of investing in the metal, but there are added costs to account for. Storing the metal, shipping it and paying a premium are all considerations before making a decision.Then there's the futures market, which is a direct way to purchase the metal. However, short of playing these contracts as a trade, they will eventually expire. It will force the investor to continually "roll" their investment into another futures contract or exercise the contract and take delivery of physical gold.So that leaves gold stocks ETFs as one alternative. Investors can consider the GLD ETF, which we highlighted above as one option. Of the gold ETFs, it's certainly the most popular. While there are drawbacks to owning gold ETFs vs. physical bullion (just as there are drawbacks to owning the latter instead of the former), gold ETFs are certainly the easiest to buy and sell. It's just like buying and selling a stock and it makes for a simple way to diversify.Another option? Owning gold miner ETFs. The largest and most well-known are the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) and the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). Gold miners perform much like gold, but generally have larger moves in the both directions. So if you believe gold is set to rally, it's quite likely that the GDX and GDXJ will outperform. If you believe gold is set to fall, these two will likely like underperform the underlying metal. Barrick Gold (GOLD) Click to EnlargeGetting into company-specific gold stocks, one consideration is certainly Barrick Gold (NYSE:GOLD). The miner commands a market cap of $24.1 billion after it merged with Randgold at the beginning of the year. Aside from the synergies created by the deal and the benefits of larger scale, GOLD has one big benefit investors miss when investing directly in gold or the GLD: yield.One big complaint about investing in gold is that it's a hard asset. It does not generate income, report profits or have a business that becomes more valuable over time. Instead, it simply relies on investor demand and inflation to boost its value. With Barrick though, investors can collect a 2% dividend yield from their investment. That's no 7% like you get from AT&T (NYSE:T), but it is a nice chunk of income. * 7 Healthy Dividend Stocks to Buy for Extra Stability Analysts predict that revenue will rise 16% this year, fueling a 29% increase in earnings to 45 cents per share. I don't like to put much (if any) credence into outlooks two years out because commodity prices can fluctuate so much in that span, but analysts are calling for a further 9% bump in earnings despite relatively flat revenue growth in fiscal 2020. Kirkland Lake Gold (KL) Click to EnlargeA much smaller name worth considering is Kirkland Lake Gold (NYSE:KL). Standing with a market cap of "just" $7 billion, KL is less one-third the size of GOLD. However, that doesn't mean we should ignore this business.On Thursday, shares are bursting higher, climbing over 7% and hitting new 52-week highs after management raised its 2019 production outlook. More production amid rising gold prices means more revenue and more profit. Assuming that's the case, the estimates for fiscal 2019 will likely need to come up.KL still needs to report its fourth-quarter earnings results for fiscal 2018. Full-year 2018 estimates call for earnings of $1.23 per share on sales of $880.5 million. In Q3, management said it expects a strong finish to the year. If it can top those estimates and provide strong guidance, the stock could have more upside. Specifically, estimates call for earnings of $1.59 in fiscal 2019 on revenue of $1 billion, representing growth of 29% and 13.6%, respectively.With more than $250 million in cash and no debt, Kirkland is attractive in regards to the balance sheet but it pays a paltry dividend yield of just 0.35%. One other note: KL stock has been ripping, so waiting for a pullback may be wise for investors. Another note? KL will report earnings on February 22nd.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post 3 Gold Stocks Percolating Right Now appeared first on InvestorPlace.
Digging into Gold Miners' Performances ahead of Their Q4 Results(Continued from Prior Part)Valuation for capital-intensive industriesThe EV-to-EBITDA (enterprise value-to-EBITDA) multiple is a good measure of valuation for capital-intensive
Weakness in global markets and another round of trade worries reignited the safety trade with exchange traded funds tracking gold prices and the gold miners space rallying on Friday. Among the best performing ...
Digging into Gold Miners' Performances ahead of Their Q4 Results(Continued from Prior Part)Analysts’ estimates for FCFInvestors are typically interested in gold mining companies’ (GDX) (GDXJ) ability to generate FCF (free cash flow) because it
Digging into Gold Miners' Performances ahead of Their Q4 Results(Continued from Prior Part)Market sentiment Let’s look at Wall Street analysts’ recent ratings and recommendations for gold miners ahead of their fourth-quarter earnings results.
Do These Factors Point to a Strong Start for Gold in 2019?(Continued from Prior Part)Gold-backed ETFsAccording to the World Gold Council, holdings in gold-backed ETFs and similar products rose by 69 tons in 2018, equivalent to $3.4 billion worth of
Which Gold Stocks Are Looking Attractive in 2019?(Continued from Prior Part)AngloGold Ashanti’s rerating potentialSouth African miners (GDXJ) have traditionally traded at discounts to their global counterparts (GDX), primarily due to South
Which Gold Stocks Are Looking Attractive in 2019?(Continued from Prior Part)AEM has the highest multiple Among intermediate gold miners (GDX), Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Agnico Eagle MinesWhereas several gold (GLD) mining companies are likely to see M&As (mergers and acquisitions), Agnico Eagle Mines (AEM) may not be
Newmont and Goldcorp Merger to Create World’s Leading Gold Miner ## Newmont-Goldcorp merger Today, Newmont Mining (NEM) and Goldcorp (GG) announced that they have entered an agreement in which NEM will acquire all of the outstanding shares of Goldcorp in a stock-for-stock transaction valued at $10 billion. Newmont will acquire each share of Goldcorp in exchange for 0.3280 NEM shares, which represents a premium of 17% based on the companies’ 20-day volume weighted average stock prices. ## Sector-leading gold combination Newmont Goldcorp’s reserves will be among the largest in the gold sector (GDX) (GDXJ). Moreover, the combined entity is targeting $1.0 billion–$1.5 billion in divestitures over the next two years to optimize gold (GLD) production at a sustainable rate. As per the press release, “In addition to providing shareholders the largest gold Reserves per share, Newmont Goldcorp will offer the highest annual dividend among senior gold producers.” ## Following Barrick-Randgold merger This transaction comes on the heels of the merger of Barrick Gold (GOLD) with Randgold Resources, which was completed on January 2, 2019. On September 24, Barrick Gold agreed to acquire Randgold Resources in a share-for-share deal. The merger created a sector-leading gold company, which owns five of the industry’s top ten Tier 1 gold assets. The combined entity has a market cap of ~$23.75 billion. It will also have the largest gold reserves among its senior gold peers (GDX) (NUGT). You can read Is Barrick Worth a Look after Its Merger with Randgold? for more details about the merger.
Despite a wild ride in the stock market late last year, VanEck is holding steady as one of the top 10 ETF providers in the U.S.
Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,275 per ounce in 2019 and $1,300 in 2020.
MORRIS: That’s interesting. Well, now let’s move on to the companies. I’ve heard you say a number of times that you think the industry is in great shape, they’ve contained their cost. The companies are in great shape. Can you tell us a little bit more about your view of the companies’ position right now financially?
Is Gold Positioned for a Bullish Turn as We Enter 2019? FOSTER: We’re at the point in the cycle I think investors should think of some defensive measures. MORRIS: One other thing I wanted to talk to you about today, is that there’s been some recent merger activity, and I remember hearing that you’d actually looked at the recent developments as pretty positive overall, for the industry, and could be another positive catalyst for gold miners.
Can you think right now if some of the current geopolitical events in the world, and something that in your mind might trigger a resumption of a new bull market for gold out of this space, and off this space?
Which Gold Miners Have Shown Upside Potential since Q3? Among the senior gold miners under our review (GDX) (GDXJ), analysts are most optimistic about Goldcorp (GG). A year ago, only 40% of analysts had “buy” ratings on the stock.
Which Gold Miners Have Shown Upside Potential since Q3? As precious metals prices started weakening, investors shifted their focus from high-leverage miners (GDX) (GDXJ) to low-leverage miners with sound growth plans, leading miners to trim their balance sheets. Newmont Mining’s (NEM) net debt at the end of the third quarter was ~$1.1 billion compared to $1.9 billion at the end of 2016.
Kinross Gold’s (KGC) liquidity position at the end of the third quarter was reflected its strategic investments. The company had cash and cash equivalents of $500 million in the third quarter compared to $918.7 million at the end of the second quarter. This liquidity position is significant given that the company doesn’t have any debt maturity until 2021.
Kinross Gold (KGC) produced 586,260 gold equivalent ounces in the third quarter, a 10% fall YoY (year-over-year). Kinross’s quarterly production was its lowest in years in the quarter. Most of the above-listed factors were also responsible for the company’s 9% YoY fall in production in the first nine months of the year.
Newmont Mining (NEM) saw its debt rise at the peak of the cycle due to expensive acquisitions, which have now been brought under control. Its net debt at the end of the third quarter was ~$1.1 billion compared to $1.9 billion at the end of 2016. Newmont’s net debt-to-adjusted EBITDA multiple was 0.4x at the end of the third quarter compared to 0.7x at the end of the second quarter of 2017 and 1.3x at the end of 2015.