3 Precious Metals Stocks Ready to Soar in 2024

Published on: Mar 7, 2024
Author: Caroline Kong

As the price of gold has set new record highs, gold stocks have gradually been brought to the attention of more investors. In addition to the Fed’s interest rate cut expectations which is the major bullish factor, the precious metal will be supported by numerous factors such as central bank purchases, the risk of recession, geopolitical crises and the possibility that inflation may be more persistent than expected. And at the same time, gold stocks overall are trading at a significant discount.

With the price of gold expected to remain elevated for an extended period of time, the time may be just right to invest in gold stocks now, especially the following best precious metals stocks that offer significant value.

Barrick Gold (GOLD)

Barrick Gold (NYSE:GOLD), which not only produces gold but also has large-scale copper businesses, is one of the best gold stocks to buy with a market cap of more than $27 billion.

Publicly available information shows that Barrick owns 16 operating mines in 13 countries, and as of December last year, the company had proven and probable gold reserves of up to 77 million ounces.

Analysts expect Barrick’s revenues to reach $12.24bn for the current financial year, up 7.4% from $11.4bn last year. And revenues for 2025 are expected to reach $13.32 billion, up nearly 9 per cent from projected revenues for 2024.

As for valuation, Barrick’s stock on the New York Stock Exchange trades at a price-to-earnings ratio of 20.75 times, a significant drop from the second quarter of last year. Finally, analysts unanimously gave Barrick stock a “strong buy” rating and an average price target of $20.32. The stock last closed at $15.71.

Newmont (NEM)

As one of the world’s top gold producers, Newmont (NYSE:NEM) stock has been a major disappointment for investors this year. As gold prices continue to hit new highs amidst bets of interest rate cuts, this gold stock looks like a great value.

Wall Street analysts are very bullish on the prospects for a recovery in Newmont stock this year, with the company expected to average $21.93 billion in revenue this year, which would be a 36.7% increase from the $16 billion it will generate in 2023. Additionally, by the end of 2025, sales are expected to reach $23.38 billion, which would be a 6.6% increase from the 2024 forecast.

On the valuation front, Newmont stock currently trades at a forward price-to-earnings ratio of less than 12x, which is slightly lower than the industry median of 12.35x. Analysts are forecasting an average price target of $44.07, which is 30% above Newmont’s latest closing price.

Wheaton Precious Metals (WPM)

Wheaton Precious Metals (NYSE:WPM) is a specialist in the field of metal royalties and streaming business, and is not directly involved in the mining business, but instead buys some or all of its physical metal products through agreements with mining companies at agreed discounted prices. This gives the company a level of predictability that is less common in gold mining companies.

The company, which is scheduled to report fourth-quarter results on 14 March, is expected to report average revenues of $1.1 billion for fiscal 2023, down 5.6% year-on-year. Earnings per share, however, are expected to come in at $1.15, up from last year’s $1.12 per share.

Analysts see 2024 as an extraordinary year for the company, with sales expected to reach $1.21 billion, a 20.6% increase over projected 2023 revenues, and earnings per share likely to climb as high as $1.45.

Wall Street analysts are generally bullish on the stock this year, with a “moderate buy” rating and an average price target of $53.94. Wheaton’s stock price on the New York Stock Exchange was last traded at $43.84.

If you’re interested in investing in mining 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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