Investing
5 Buy-Rated Gold Stocks Under $10 May Provide a Cheap Inflation and Portfolio Hedge
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While most of Wall Street focuses on large-cap 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 is difficult to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way not only to 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.
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Skeptics of low-priced shares should remember that at one point both Amazon and Apple traded in the single digits. One stock we featured over the years, Zynga, recently was purchased by Take-Two Interactive.
We screened our 24/7 Wall St. research database looking for smaller cap gold-mining and royalty companies trading under $10 that could offer an inexpensive way to buy some portfolio insurance and a hedge in these very volatile and inflation-infused times. Five stocks hit our screens, and all are rated Buy at major 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.
B2Gold
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).
Last week, B2Gold reported adjusted earnings per share for the first quarter of 2022 that exceeded the consensus forecast, though the bottom line was down 33% year over year. Revenues of $366 million also exceeded expectations. A 5% increase in the average realized gold prices paved the way but was partly offset by a 4% decline in gold ounces sold.
B2Gold stock investors receive a 4.17% dividend. BofA Securities has a price target of $5.85, and the consensus target is $5.87. The shares last traded on Friday at $3.98.
Eldorado Gold
This stock was crushed recently and is offering an excellent entry point. Eldorado Gold Corp. (NYSE: EGO) engages in the exploration, discovery, acquisition, financing, development, production, sale and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil and Romania. The company primarily produces gold, as well as silver, lead and zinc.
The company holds a 100% interest in the Kisladag and Efemcukuru gold mines located in western Turkey, 100% interest in Lamaque gold mines located in Canada and 80.5% interest in Certej development projects located in Romania.
CIBC has an Outperform rating and an $18 price target. The consensus target is posted at $13.94. Eldorado Gold stock last traded at $8.09 on Friday.
24/7 Wall St.Kinross Gold
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.
The company recently announced a definitive agreement with Asante Gold to sell its Chirano gold mine in Ghana for $225 million in total. Top analysts felt that the $225 million was below the intrinsic value of $263 million or more, but many felt that the Chirano mine was a highly likely candidate for a sale, given the small net asset value, and it had a relatively short mine life expectancy.
Shareholders receive a 2.92% dividend. BofA Securities has a $7.65 price target on Kinross Gold stock. The consensus target is up at $9.75, but on Friday the shares closed trading at $4.16.
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Sandstorm Gold
This stock also took a big hit recently and is offering a great spot for investors who are more conservative to buy shares. Sandstorm Gold Ltd. (NYSE: SAND) operates as a gold royalty company. It focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines.
Sandstorm Gold offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine’s production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties.
It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Côte D’Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji and Australia.
Investors receive a 1.05% dividend. The $14.75 H.C. Wainwright target price is well above the $10.05 consensus target and a share price of $6.21 was last seen on Friday.
Yamana
This is a smaller market cap gold-mining stock for investors looking to add a higher share count and some inflation protection. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company is focused on growing profitably through the careful management of costs.
Yamana 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.
Investors receive a 2.46% dividend. BofA Securities has set a $6.25 price target, but the consensus target on Yamana Gold stock is up at $7.22. The shares closed trading at $4.91 on Friday.
These are five gold stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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