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Gold prices are expected to rise sustainably in 2024 as geopolitical tensions rise and a potential rate cut by the Federal Reserve looms. Against this backdrop, high-quality gold stocks Alamos Gold (AGI), Barrick Gold (GOLD), and Harmony Gold Mining Company (HMY) are solid buys to boost portfolio performance now. There is a possibility. read….
Gold prices recently hit record highs as recent Federal Reserve bets on interest rate cuts and geopolitical tensions fueled the market. Therefore, investors can improve the performance of their portfolio by investing in gold stocks that are fundamentally strong. Alamos Gold Inc.A.G.I.), Barrick Gold Corporation (Money), Harmony Gold Mining Company Limited (HMY) now.
Recently reached gold prices record breaking high price, currently trading above $2,100 per ounce. This surge is likely being driven by the Federal Reserve’s potential interest rate cuts and central banks’ continued purchases of record amounts of bullion.
Aakash Doshi, head of North American commodities at Citi, expects gold prices could rise. Up to $2,300 per ounce That will likely happen in the second half of 2024, especially given that interest rate cuts are expected around that time.
The gold-rich jewelery sector is driven by high demand during festivals and weddings in countries such as China and India, indicating growth prospects for the gold market. In the United States, the adoption of gold wedding rings influenced by Western European culture is driving demand and driving market growth. As a result, the global gold mining market $260 billion by 2030is growing at a CAGR of approximately 3.5%.
Additionally, strong demand for tangible gold is driven by its appeal as a ‘safe haven’ asset, attracting investors seeking diversification when returns from other asset types are not as strong.
To that end, let’s take a look at the fundamentals of three stocks you should buy. Minor – Gold Industry, let’s start with the third option.
Stock #3: Alamos Gold Co., Ltd. (A.G.I.)
Headquartered in Toronto, Canada, AGI acquires, explores, develops and extracts precious metals in Canada and Mexico. The company primarily explores gold and silver deposits.
On February 28, AGI’s Board of Directors announced a quarterly dividend of $0.03 per common share, payable on March 28, 2024. The company has paid a dividend for 15 consecutive years and has returned $334 million to shareholders through dividends and stock buybacks. $39 million in 2023.
AGI pays an annual dividend of $0.10 per share. dividend yield The current stock price is 0.74%. The four-year average yield is 0.95%. Over the past three and five years, AGI’s dividends have grown at a CAGR of 10.1% and 38%, respectively.
AGI’s past 12 month CapEx/Sales of 34.10% is 347.9% higher than the industry average of 7.61%. EBIT and net profit margin for the trailing twelve months were 31.09% and 20.52%, which were 181.2% and 308% higher than the industry average of 11.06% and 5.03%, respectively.
AGI’s operating revenue and pretax income for the fourth quarter of the fiscal year ended December 31, 2023 were $254.6 million and $71.9 million, an increase of 9.8% and 16.7%, respectively, from the prior year period. Net income and earnings per share for the quarter were $47.1 million and $0.12, respectively, up 16% and 20% from the same period last year.
TheStreet expects AGI’s revenue and EPS to be $272 million and $0.13 for the fiscal first quarter ending March 2024, up 8.2% and 16% year over year, respectively. . The company has surpassed consensus EPS estimates in each of his four subsequent quarters and exceeded consensus revenue estimates in three of his subsequent four quarters. This is great.
Shares have increased 23.9% over the past year, closing at $13.62. It has risen 16% over the past nine months.
The solid foundation of AGI is power rating. The stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
This stock has a B grade for sentiment and quality.within Minor – Gold It ranks 11th out of 43 stocks in the industry.
To see additional POWR ratings for AGI’s Growth, Value, Momentum, and Stability, visit click here.
Stock #2: Barrick Gold Corporation (Money)
Headquartered in Toronto, Canada, GOLD explores, develops, produces and markets gold and copper properties in Canada and internationally. The company also explores and sells silver and energy materials.
On March 15, GOLD paid a dividend of $0.10 per share to shareholders for the fourth quarter of 2023. The company pays him an annual dividend of $0.40 per share, giving him a dividend yield of 2.55% at the current stock price. The average yield over four years is 2.79%. GOLD’s dividends have grown at a CAGR of 6.6% and 16.1% over the past three years and five years, respectively.
GOLD’s trailing twelve month CapEx/Sales was 27.08%, which was 255.7% higher than the industry average of 7.61%. EBIT and net profit margin for the trailing twelve months were 21.66% and 11.16%, which were 95.9% and 121.9% higher than the industry average of 11.06% and 5.03%, respectively.
For the fourth quarter of its fiscal year ended December 31, 2023, GOLD’s revenue increased 6.9% sequentially to $3.06 billion, with free cash flow of $136 million.
Adjusted net income and adjusted net income per share for the quarter were $466 million and $0.27, respectively, an increase of 11.5% and 12.5% from the prior quarter. As of December 31, 2023, GOLD’s total current liabilities were $2.36 billion, and as of December 31, 2022, they were $3.12 billion.
Street expects GOLD’s revenue and EPS to be $2.83 billion and $0.19 for the fiscal first quarter ending March 2024, up 7.1% and 35.5% year over year, respectively. . The company beat consensus EPS estimates in each of his four subsequent quarters.
The stock rose slightly during the day to close at $15.81. It has risen 7.2% in the past month.
GOLD’s solid outlook is reflected in its POWR rating. The stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
GOLD has a B growth and quality grade. It ranks 8th in the industry.
In addition to the above, we also evaluated stocks for value, momentum, stability, and sentiment. Get all GOLD ratings here.
Stock #1: Harmony Gold Mining Company Limited (HMY)
Headquartered in Randfontein, South Africa, HMY explores, extracts and processes gold. The company is exploring uranium, silver, copper and molybdenum deposits.
HMY’s Board of Directors has approved an interim cash dividend of 7.61 cents per common share for the six months ending December 31, 2023, to be paid to stockholders of record on April 15, 2024. The company pays him an annual dividend of $0.12 per share. The dividend yield based on the current stock price is 1.49%. The four-year average yield is 0.98%.
HMY expects total gold production for the six months to 31 December 2023 to be between 820,000 and 835,000 ounces, up approximately 12% compared to the six months to 31 December 2022. announced an increase of 14%.
HMY’s CapEx/Sales for the past 12 months was 13.69%, which was 79.8% higher than the industry average of 7.61%. His EBIT and net profit margin for the past 12 months were 21.29% and 15.50%, which are 92.6% and 208.2% higher than the industry average of 11.06% and 5.03%, respectively.
For the six months ended December 31, 2023, HMY’s revenue and gross profit were $1.68 billion and $462 million, respectively, increases of 25.2% and 165.5% year over year.
During the same period, net income attributable to owners of the parent and earnings per common share were $318 million and 51 cents, an increase of 197.2% and 200%, respectively, from the same period last year.
The company expects to produce between 1.38 million ounces and 1.48 million ounces of gold and gold equivalents in fiscal 2024 at an total sustaining cost (AISC) of less than R975,000/kg ($51,956.10/kg). .
Street expects HMY’s sales to increase 19.1% year-on-year to $3.14 billion in the fiscal year ending June 2024.
The stock price has increased 111.3% over the past year, closing at $7.88. It has risen 89.4% over the past nine months.
HMY’s POWR rating reflects its positive outlook. The stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
HMY has an A grade for growth and a B grade for value and quality. Ranked 5th in the industry.
click here Click here for additional POWR ratings for HMY (Momentum, Stability, Sentiment).
What’s next?
Steve Reitmeister, a 43-year investment veteran, shares his market outlook for 2024, his trading plans for the year ahead, and his top 11 stocks.
Stock market outlook for 2024 >
GOLD stock fell $0.08 (-0.51%) in pre-market trading on Friday. Year-to-date, GOLD has fallen -11.38%, while the benchmark S&P 500 index has risen 10.21% in the same period.
About the author: Neha Panjwani
Neha has had a deep interest in finance since her school days, a passion that led her to a career as an investment analyst after completing a bachelor’s degree in commerce. Neha is currently enrolled in the CFA program and is dedicated to further deepening her understanding of the fundamentals of investing. Neha’s main objective is to help individual investors identify the best investment opportunities by passionately evaluating the key aspects of financial products, primarily focusing on stocks and her ETFs. is. Her focus is on empowering individuals to make informed and strategic investment decisions in a dynamic financial world.
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