2 Precious Metals Stocks Set To Shine in 2024

Published on: January 31, 2024
Author: Caroline Kong

There are a number of reasons to own precious metals stocks in 2024, including rising gold prices and falling interest rates. One particular thing worth pointing out, however, is that while the U.S. economy is still thriving on the surface or in the numbers. However, corporate layoffs are accelerating, and consumer spending appears to heavily depend on credit cards, meaning a recession or hard landing could be on the way.

Precious metal stocks are solid value investment options, and if the economy and stock market perform well this year, there’s nothing wrong with owning a small portion of them in your portfolio. However, in the event of a stock market-like crash, there is no substitute for precious metal stocks.

Barrick Gold (GOLD)

Barrick Gold Barrick Gold (NYSE:GOLD) is one of the top investment options among large-cap precious metals stocks. The mining company has already previewed its fourth-quarter financials to investors, announcing not only that gold production will increase in the fourth quarter, but that the production figure could be the highest of the year. Unfortunately, over the past month ending 30 January 2024, Barrick shares fell 13%, and most of the decline came after Barrick’s announcement. Luckily, Barrick stock eventually found support near $15.25, which is 37% upside from Wall Street analysts’ consensus price target of $21.63.

If that happens, this could turn out to be a buying opportunity for Barrick Gold Corp. before it reports earnings in February. Of the 23 analysts tracking the stock, 16 currently have a “strong buy” or “buy” rating on the stock.

Barrick stock is currently trading at a forward price-to-earnings ratio of 19.82 times, which exceeds the median expected price-to-earnings ratio of about 13.9 times over the next five years and is well above the mining industry average of 7.8 times. But even so, investors are paying a willing premium for this gold stock.

Endeavour Silver (EXK)

Endeavour Silver (NYSE:EXK) is a small-cap precious metals stock with a current market cap of $338.8 million. Investors with an aversion to volatility may be concerned about this silver stock’s 1.6x beta. However, with some risk tolerance and enough capital, Endeavour Silver is actually quite attractive.

Firstly because of the stock price. With revenues and earnings holding steady in 2023, the stock’s share price is down 54% over the past 12 months. That’s not because of the company’s fundamentals or negative news, but because of the overall downturn in small-cap mining stocks over the past year. Second, the company expects its Terronera coal mine to begin mining in the fourth quarter of 2024, when the company’s revenues will grow significantly.

In January, four out of five Wall Street analysts tracking the stock gave Endeavour Silver a “strong buy” rating, with a consensus price target of 179.5% above the stock’s 30 January 2024 closing price.

If you’re interested in investing precious metals stocks, you might want to keep an eye on this company: Silver Storm Mining Ltd. (TSXV:SVRS). Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Golden Tag recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.

Disclaimer: Investing involves risk, and individuals should conduct thorough research and seek professional advice before making financial decisions. NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.

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