The gold mining market has performed extremely well YTD, posting gains of 36.1%, well above the S&P 500's 16.4%. The industry currently sits at No. 12 out of 256 in our Zacks Industry Rank system. With that being said, here are 5 highly-ranked gold stocks that are also currently trading for less than $10 a share.
It is important to note before we dive in that stocks under $10 often show more volatility than higher priced stocks.
B2Gold Corp BTG - Market Cap: $3.39 billion, Last Close: $3.28
B2Gold is a Canadian gold-mining company based in Vancouver. The company currently has five mines open throughout the world, and another two projects in development. B2Gold has the largest market cap on this list, which makes it relatively less volatile.
B2Gold is currently trading with a forward P/E of 13.95, which is significantly below the gold mining market average of 25.57. This P/E difference suggests that BTG may currently be undervalued even at its price of $3.33.
BTG’s growth prospects also contribute to the stocks low P/E. In fiscal 2019, our Zacks Consensus Estimates call for earnings to surge 12.5% on the back of 5.67% top line growth. Looking further ahead, B2Gold’s bottom line is expected to surge 54% higher in fiscal 2020 on 8% revenue expansion. B2Gold stock has popped 13% YTD. B2Gold did hit a new 52-week high on August 1st, so investors will hope to continue to build upon that in the coming weeks. B2Gold is currently a Zacks Rank #1 (Strong Buy).
Harmony Gold Mining Company Ltd HMY - Market Cap: $1.17 billion, Last Close: $2.66
Based in South Africa, Harmony has multiple mining operations in both South Africa and Papua New Guinea. In March, Harmony added another mine to its operations when it acquired the Moab Khotsong mine from AngloGold Ashanti AU for $300 million. HMY stock has been on a hot streak over the past 3 months, gaining over 64%.
Harmony currently boasts a Zacks Rank #2 (Buy) as well as an overall “A” VGM (Value, Growth, Momentum) grade in our Style Scores system. Over the past 60 days, Harmony has seen its fiscal 2020 and fiscal 2021 (Harmony ends its fiscal year after June) EPS estimates increase significantly. Harmony is expected to see its earnings soar 223% in fiscal 2020 to reach $0.42 a share. This EPS growth is forecasted to be accompanied by a 35.95% revenue increase, bringing revenues just over $2 billion.
Eldorado Gold Corp EGO- Market Cap: $1.31 billion, Last Close: $8.16
Vancouver-based Eldorado Gold is a precious metal mining company with operations in North America, South America, and Europe. Eldorado currently operates 4 gold mines and 2 non-gold mines, with multiple other projects under development. Eldorado released its Q2 earnings yesterday, missing earnings expectations, causing the stock to fall 1.45%.
Last year, Eldorado had revenue of $458.95 million. In 2019, our Zacks Consensus Estimates call for revenue of $632.02 million and the company seems on-track to meet this, with revenue of $253.7 million through the first two quarters. This 37.71% revenue growth prediction is expected to help earnings soar year-over-year. Analysts expect annual EPS of $0.15, compared to a loss of $0.17 last year. The growth is not supposed to stop there either, revenue in fiscal 2020 is predicted to hit $826.74 million, another 30.81% increase. Meanwhile, Eldorado’s bottom line is forecasted to grow a further 412.22%, to reach $0.76. Analyst estimate revisions have trended in the right direction as of late, and Eldorado has the best growth prospects out of all the companies on this list. Even though EGO has already gained 183% YTD, it could continue to soar above the 52-week intraday high of $8.35 it hit on August 2nd. Eldorado currently holds a Zack Rank #2 (Buy).
Sandstorm Gold Ltd. SAND- Market Cap: $1.15 billion, Last Close: $6.21
Another Vancouver-based company, Sandstorm is not a mining company like the others on the list. Instead, Sandstorm provides financing for precious metal mining companies. Sandstorm provides cash upfront in exchange for a percentage of gold production from the mine. Sandstorm currently has 187 royalties with 21 cash-flowing assets.
Sandstorm currently holds a Zacks Rank #2 (Buy) and boasts an “A” grade for Growth in our Style Scores system. Sandstorm has huge growth prospects over the next couple fiscal years. In fiscal 2019, our Zacks Consensus Estimates predict top line growth of 26.08% to boost Sandstorm’s bottom line by 100%. Following up in fiscal 2020, analysts expect revenue to grow another 13.1% and EPS to grow an additional 66.66%. YTD, SAND is up 35.7%.
Asanko Gold Inc. AKG- Market Cap: $182.86 million, Last Close: $0.8197
Asanko Gold is a gold mining company that operates a joint venture mine in Ghana. Asanko has a 45% stake in the Asanko Gold Mine, while Gold Fields Ltd. GFI holds a 45% stake and the Government of Ghana holds the other 10%. The main reason that Asanko has such a small market cap is because it only operates the one mine. Currently, AKG trades at $0.8198, and has gained over 28% YTD and holds a Zack Rank #2 (Buy).
Revenue in fiscal 2019, according to our Zacks Consensus Estimates, is expected to be $298.9 million, an 84.60% increase from the year before. EPS in fiscal 2019 is expected to fall from a $0.01 gain to a loss of $0.04. But, looking further ahead, predicted EPS in fiscal 2020 is $0.09, on another 3.44% revenue increase.
Asanko is the cheapest stock on this list, currently trading under $1. Stocks under $1 tend to have extreme volatility compared to blue-chip stocks, and may be more volatile than some of the other stocks on this list. Although buying in at this price might seem attractive, investors should exercise caution.
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Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report
AngloGold Ashanti Limited (AU) : Free Stock Analysis Report
Asanko Gold Inc. (AKG) : Free Stock Analysis Report
Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
B2Gold Corp (BTG) : Free Stock Analysis Report
Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report
Gold Fields Limited (GFI) : Free Stock Analysis Report
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