Five gold stocks to watch as Fed mulls stimulus tapering

Highlights

  • The net income of Newmont Corporation (NYSE: NEM) was US$661 million in Q2, FY21.
  • Freeport-McMoRan, Inc’s (NYSE: FCX) net income was US$1.08 billion in Q2, FY21.
  • The FCX stock surged 30.03% YTD.

Investors are closely following the gold stocks as central banks start withdrawing stimulus support. Although precious metal prices do not typically see sharp ups and downs, stocks could be impacted by market sentiments driven by economic trends like inflation.

While the European Central Bank has slowed down its asset-buying programs, the Fed is likely to follow suit later this year, drawing investors' attention to the yellow metal.

Here we explore the performance of five gold stocks in the market.

Newmont Corporation (NYSE: NEM)

Newmont is based in Dever, Colorado, and is one of the world’s leading gold mining companies. It has operations in various countries, including Australia, Peru, and Ghana.

The stock traded at US$57.29 at 11:45 am ET on Sep 14, up 0.44 percent from its previous closing price. The NEM stock value fell by 9.68 percent YTD. Newmont has a market cap of US$45.97 billion, a P/E Ratio of 16.11, and a forward P/E one year of 16.07. Its EPS is US$3.57.

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The 52-week highest and lowest stock prices were US$75.31 and US$54.18, respectively. Its trading volume was 4,647,332 on September 13.

The company’s revenue jumped 30 percent YoY to US$3.06 billion in Q2, FY21. Its net income was US$661 million against US$347 million in Q2, FY20.

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Barrick Gold Corporation (NYSE: GOLD)

Barrick is a mining company headquartered in Toronto, Canada, and produces gold and copper. The company operates globally.

The stock was priced at US$19.665 at 12:07 pm ET on Sep 14, up 1.00 percent from its previous close. The GOLD stock slipped 20.92 percent YTD. The market cap is US$35.06 billion, the P/E ratio is 13.88, and the forward P/E one year is 15.58. Its EPS is US$1.42.

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The highest and lowest stock prices for the last 52 weeks were US$30.54 and US$18.64, respectively. Its share volume was 15,877,270 on September 13.

The company's revenue was US$2.89 billion in Q2, FY21, a decrease of 5 percent from its year-ago quarter. Its net earnings came in at US$411 million, or US$0.23 per share, compared to US$357 million, or US$0.20 per share in Q2, FY20.

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Freeport-McMoRan, Inc. (NYSE: FCX)

It is a mining company that has interests in commodities like gold, copper, and molybdenum. It is based in Phoenix, Arizona.

The stock traded at US$35.18 at 12:18 pm ET on Sep 14, down 0.31 percent from its previous close. The FCX stock value surged 30.03 percent YTD. It has a market cap of US$51.54 billion, a P/E ratio of 18.38, and a forward P/E one year of 11.92. Its EPS is US$1.91.

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The 52-week highest and lowest stock prices were US$46.10 and US$14.67, respectively. Its trading volume was 13,867,370 on September 13.

The revenue was US$5.74 billion in Q2, FY21, compared to US$3.05 billion in the year-ago quarter. Its net income attributable to common stock was US$1.08 billion, or US$0.73 per diluted share, compared to US$53 million, or US$0.03 per diluted share in Q2, FY20.

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Agnico Eagle Mines (NYSE: AEM)

It is a Toronto, Canada-based mining company and produces gold. It operates in North America.

The stock was priced at US$56.55 at 12:28 pm ET on Sep 14, up 1.86 percent from its previous closing price. The AEM stock plunged 26.15 percent YTD. Its market cap is US$13.72 billion, the P/E ratio is 18.28, and the forward P/E one year is 19.90. Its EPS is US$3.08.

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The highest and lowest stock prices for the last 52 weeks were US$89.23 and US$54.66, respectively. Its share volume was 1,357,490 on September 13.

The company's revenue from mining operations was US$966.32 million in Q2, FY21, compared to US$557.17 million in the year-ago quarter. Its net income was US$189.56 million, or US$0.77 per diluted share, compared to US$105.30 million, or US$0.43 per diluted share in Q2, FY20.

Source: pixabay

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Franco-Nevada Corporation (NYSE: FNV)

It is a Toronto-based mining company that has an interest in gold. It has operations in Latin America, the US, Africa, Canada, Australia.

The stock traded at US$143.06 at 12:38 pm ET on Sep 14, up 1.92 percent from its last closing price. Its stock value increased by 6.53 percent YTD.

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It has a market cap of US$27.30 billion, a P/E Ratio of 40.25, and a forward P/E one year of 39.76. Its EPS is US$3.55.

The 52-week highest and lowest stock prices were US$163.79 and US$105.62, respectively. Its trading volume was 739,314 on September 13.

The revenue was US$347.1 million in Q2, FY21, compared to US$195.4 million in the same quarter of the previous year. Its net income came in at US$175.3 million, or US$0.92 per diluted share, compared to US$94.4 million, or US$0.50 per diluted share in Q2, FY20.

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Bottomline

Gold futures increased by 0.89 percent to US$1810.35 at 11:18 am ET on Tuesday. Analysts expect gold stocks to grow despite various market trends. Moreover, the central bank's stimulus tapering could shift the investors' focus more on the commodity, they say. However, investors must carefully evaluate the companies before investing in stocks.

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