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 Kirkland Lake Gold Ltd. (KL).
Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have dramatically outperformed the broader market as gold prices have risen. Gold stocks have provided investors with a total return of 40.2% compared to the S&P 500's total return of 23.9% over the past 12 months. These market performance numbers and the statistics in the tables below are as of August 26.
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|
|Jaguar Mining Inc. (JAG.TO)||CA$0.78||CA$0.6||9.4|
|Alacer Gold Corp. (ASR.TO)||CA$8.22||CA$2.4||11.2|
|Barrick Gold Corp. (ABX.TO)||CA$37.85||CA$67.3||11.4|
- Jaguar Mining Inc.: Jaguar is a Canada-based mining company that explores, develops, and operates gold mineral properties in Brazil. The company reported revenue growth of 77.8% for Q2 2020, which ended June 30, 2020. Jaguar posted $19.2 million in net income in Q2, a dramatic swing from a $2.1 million loss in the same quarter a year earlier.
- Alacer Gold Corp.: Alacer Gold is a gold producer engaged in the mining, development, and exploration of mineral deposits in Turkey. The company announced in mid-July that its proposed at-market merger of equals with SSR Mining Inc. (SSRM.TO) was approved by the Supreme Court of Yukon, a Canadian territory.
- Barrick Gold Corp.: Barrick Gold is a Canada-based mining company principally engaged in the production and sale of gold and copper. The company has operating mines and development projects in the U.S., Canada, South America, Australia, and Africa.
Fastest Growing Gold Stocks
These are the gold stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Gold Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Sandstorm Gold Ltd. (SSL.TO)||CA$11.41||CA$2.2||314.4|
|Agnico Eagle Mines Ltd. (AEM.TO)||CA$103.53||CA$25.0||271.2|
|Eldorado Gold Corp. (ELD.TO)||CA$14.15||CA$2.5||236.7|
- Sandstorm Gold Ltd.: Sandstorm is a Canada-based metals company that owns the rights to purchase gold and other metals from either mining companies or advanced stage development projects. The company reported net income growth of 193.2% despite a revenue decline of 12.9% for Q2 2020, which ended June 30, 2020. Net income received a boost from gains on the revaluation of the company's investments as well as lower cost of sales. Sandstorm withdrew its production guidance for 2020 due to the uncertain outlook stemming from the COVID-19 pandemic.
- Agnico Eagle Mines Ltd.: Agnico Eagle is a Canada-based gold exploration and production company. The company has operations and exploration activities throughout Canada, Europe, Latin America, and the U.S.
- Eldorado Gold Corp.: Eldorado is a Canada-based gold mining company. The company has operations throughout the world, including Brazil, China, Turkey, and Greece. Eldorado reported a 273.8% rise in net earnings on revenue growth of 47.3% for Q2 2020, which ended June 30, 2020.
Gold Stocks with the Most Momentum
These are the gold stocks that had the highest total return over the last 12 months.
|Gold Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Tudor Gold Corp. (TUD.V)||CA$2.78||CA$450.0||302.9%|
|Mako Mining Corp. (MKO.V)||CA$0.48||CA$310.6||265.4%|
|Rupert Resources Ltd. (RUP.V)||CA$3.05||CA$499.9||258.8%|
|VanEck Vectors Gold Miners ETF (GDX)||N/A||N/A||40.2|
- Tudor Gold Corp.: Tudor is a Canada-based mining company focused on the exploration and development of precious metals. The company targets mining operations in the area of British Columbia known as the Golden Triangle.
- Mako Mining Corp.: Mako is a Canada-based gold mining and natural resource company. The company's operations are focused on gold exploration in Nicaragua.
- Rupert Resources Ltd.: Rupert is a Canada-based gold mining company focused on the exploration and production of precious and base metals. The company reported a net loss of CA$1.1 million for Q1 of its 2020 fiscal year (FY), which ended May 31, 2020. It was slightly better than the net loss of CA$1.3 million posted in the same three-month period a year ago.
YCharts. "Financial Data." Accessed Aug. 26, 2020.
Jaguar Mining Inc. "JAGUAR MINING REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS." Accessed Aug. 26, 2020.
Alacer Gold Corp. "ALACER GOLD OBTAINS FINAL ORDER APPROVING PLAN OF ARRANGEMENT WITH SSR MINING." Accessed Aug. 26, 2020.
Sandstorm Gold Ltd. "Second Quarter Report 2020," page 18. Accessed Aug. 26, 2020.
Sandstorm Gold Ltd. "SANDSTORM GOLD ROYALTIES ANNOUNCES 2020 SECOND QUARTER RESULTS." Accessed Aug. 26, 2020.
Eldorado Gold Corp. "Eldorado Gold Reports Q2 2020 Financial and Operational Results." Accessed Aug. 26, 2020.
Rupert Resources Ltd. "CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MAY 31, 2020," page 2. Accessed Aug. 26, 2020.