Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the precious metal by buying stocks of companies engaged in exploration and mining. Some of the major players in the gold industry include mining companies Franco Nevada Corp. (FNV), Wheaton Precious Metals Corp. (WPM), and Newcrest Mining Ltd. (NCM). Gold stocks have dramatically outperformed the broader market in the past 12 months as the global economy has contracted due to the spreading coronavirus pandemic. As represented by the VanEck Vectors Gold Miners ETF (GDX), gold has posted a total return of 61.1% compared to the S&P 500's total return of 8.9% over the past 12 months. These market performance numbers and the statistics in the tables below are as of July 28.
Here are the top 3 gold stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Gold Stocks
These are the gold stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Gold Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Caledonia Mining Corp. PLC (CMCL)||26.95||0.3||7.4|
|Barrick Gold Corp. (ABX.TO)||CA$39.98||CA$71.1||12.5|
|Kinross Gold Corp. (KGC)||8.71||11.0||14.1|
- Caledonia Mining Corp. PLC: Mineral exploration and development company Caledonia is based in South Africa. The company focuses on gold mines in Zimbabwe. In the first half of 2020, Caledonia's year-over-year (YOY) gold production increased roughly 12.5%.
- Barrick Gold Corp.: Barrick Gold is a Canada-based mining company principally engaged in the production and sale of gold and copper. The company has operating mines and development projects in the U.S., Canada, South America, Australia, and Africa. Barrick on July 16 said that the company is on track to achieve its guidance for 2020 in spite of lockdowns related to the COVID-19 pandemic.
- Kinross Gold Corp.: Kinross Gold is a Canada-based gold mining company engaged in the exploration, development, and production of gold with properties in Canada, the U.S., Russia, Brazil, Ecuador, Chile, Ghana, and Mauritania.
Fastest Growing Gold Stocks
These are the gold stocks with the YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Gold Stocks|
|Market Cap ($B)||EPS Growth (%)|
|Alacer Gold Corp. (ASR.TO)||CA$10.63||CA$3.1||1,510|
|Newmont Corp. (NEM)||69.04||55.4||537.5|
|SSR Mining Inc. (SSRM.TO)||CA$32.79||CA$4.0||283.4|
- Alacer Gold Corp.: Alacer Gold is a producer engaged in the mining, development, and exploration of mineral deposits in Turkey. In July, Alacer shareholders voted to approve a merger with SSR Mining Inc. (SSRM.TO). Alacer received key regulatory approval from the Supreme Court of Yukon in Canada's Yukon Territory on July 17.
- Newmont Corp.: Newmont acquires and develops mineral properties. The company produces primarily gold, but also silver, copper, zinc, and lead.
- SSR Mining Inc.: SSR Mining is a Canada-based company engaged in the exploration and development of gold and silver mines. It has operations throughout the Americas, with its three largest properties located in Nevada; Saskatchewan, Canada; and Argentina. As mentioned, SSR Mining agreed to merge with Alacer Gold Corp.
Gold Stocks with the Most Momentum
These are the gold stocks that had the highest total return over the last 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
DRDGold Ltd. (DRD)
|Tudor Gold Corp. (TUD.V)||CA$3.04||CA$0.5||415.3|
|Caledonia Mining Corp. PLC (CMCL)||26.95||0.3||343.9|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||61.1|
- DRDGold Ltd.: DRDGold is a South Africa-based gold mining company. The company owns and operates underground mines and surface-retreatment operations in South Africa.
- Tudor Gold Corp.: Canadian mining company Tudor Gold focuses on the exploration and development of precious metals. The company targets mining operations in the area of British Columbia known as the Golden Triangle. On June 15, Tudor Gold announced the completion of the purchase of the remaining 40% interest in the Electrum Claims, a set of properties and mineral rights in British Columbia, from American Creek Resources, Ltd. Tudor now owns 100% of Electrum. The purchase price was CA$250,000 as well as 1.4 million shares of Tudor stock.
- Caledonia Mining Corp. PLC: See company description above.
YCharts. "Financial Data," Accessed July 28, 2020.
Caledonia Mining Corp. PLC. "Caledonia Mining Corporation Plc Q2 2020 Production." Accessed July 28, 2020.
Barrick Gold Corp. "Solid Q2 Performance Means Barrick is On Track to Achieve Full-Year Production Targets." Accessed July 28, 2020.
Alacer Gold Corp. "Alacer Gold Obtains Final Order Approving Plan of Arrangement With SSR Mining," Page 1. Accessed July 28, 2020.
Tudor Gold Corp. "TUDOR GOLD COMPLETES PURCHASE OF REMAINING INTEREST IN ELECTRUM CLAIMS." Accessed July 28, 2020.