Commodities & Metals
5 Gold Stocks Trading Under $10 With Huge Upside Potential
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While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
We screened our 24/7 Wall St. research database looking for gold stocks likely to survive the current troubles that could very well offer investors some huge returns over the next year or so. With gold still trading near record highs, and all the reasons to own them still in place, these could be great ideas for aggressive investors.
While all five stocks are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This is a small-cap gold stock for aggressive investors looking for sector exposure. B2Gold Corp. (NYSE: BTG) is a global, growth-oriented mid-tier gold producer whose primary assets include gold mines located in Nicaragua (La Libertad and El Limon), the Philippines (Masbate) and Namibia (Otjikoto) and Mali (Fekola).
B2Gold recently announced positive drill results from the Mamba zone, which is located within the Anaconda area approximately 20 kilometers from the Fekola Mine, as well as positive infill drill results from the Fekola mineral resource area and step out results north of the Fekola resource.
The BofA Securities team has its price target set at $6.40, and the Wall Street consensus target is just $3.50. B2Gold stock has traded mostly between $6 and $7 over the past month.
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties, principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
Kinross Gold is also involved in the extraction and processing of gold-containing ores, reclamation of gold-mining properties and the production and sale of silver. As of December 31, 2019, its proven and probable mineral reserves included approximately 24.3 million ounces of gold and 55.7 million ounces of silver.
The BofA team attributed the recent earnings beat in part to a lower tax rate. While the company has kept its 2020 guidance withdrawn, it is on track to meet its prior GEO output and cost guidance for the year. Kinross has reduced its net debt by $160 million on a quarter-over-quarter basis, largely due to impressive free-cash-flow generation. In addition, the company sees higher output over the rest of the year.
BofA Securities recently lifted the $8.90 price target to $11.25. The posted consensus target is $10.35, and Kinross Gold stock tried to breach the $9 level again on Friday.
This is another small-cap gold-mining stock for aggressive investors looking for exposure to the sector. Iamgold Corp. (NYSE: IAG) explores for, develops and operates gold-mining properties in North and South America and West Africa. It owns interests in the Rosebel mine located in Suriname, the Essakane mine in Burkina Faso, the Westwood mine in Quebec and the Sadiola mine in Mali.
Its exploration and development projects include the Boto gold project in Senegal; the Diakha-Siribaya gold project in Mali; the Pitangui project in Brazil; the Côté gold project in Ontario; the Nelligan and Monster Lake projects in Quebec; the Rouyn-Yorbeau project in Quebec; the Loma Larga, a gold, silver and copper project in southern Ecuador; and the Eastern Borosi project in Northeast Nicaragua.
The $9 TD Securities price target compares with a $7.65 consensus target. Iamgold stock has been trading above $4.00 recently.
This micro-cap play could be a big winner as some feel it is a potential takeover target. New Gold, Inc. (NYSE: NGD) is an intermediate gold-mining company, engages in the development and operation of mineral properties. It primarily explores for gold, silver, and copper deposits.
The company’s operating properties include the Rainy River project located in Ontario, Canada; the New Afton project located near Kamloops, British Columbia, Canada; and the Cerro San Pedro mine located in the state of San Luis Potosí, Mexico.
New Gold also holds interests in the Blackwater project located to the Southwest of Prince George, British Columbia, Canada. The company was founded in 1980 and is headquartered in Toronto, Canada.
The Canaccord Genuity price objective is $2.25, but the consensus target price is much higher at $4.01. New Gold stock has climbed from near $0.50 to above $1.50 in the past six months.
This is another smaller market cap contender for investors looking to add a higher share count. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company has targeted 0.89 million ounces on a gold equivalent basis in 2020. Yamana is focused on growing profitably through the careful management of cost.
The company engages in operating mines, development stage projects and exploration and mineral properties, chiefly in Canada, Brazil, Chile and Argentina. The company primarily sells precious metals, including gold, silver and copper. Its principal mining properties comprise the Chapada and Jacobina mines in Brazil, the Canadian Malartic mine in Canada, and the Cerro Moro mine in Argentina and the El Peñón and Minera Florida mines in Chile.
Credit Suisse has set its price target at $7.25. The consensus target is just $3.86, but Yamana Gold stock was trading just above $6 on Friday.
These are five stocks for very aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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