Gold Approaches Record High: 3 Mining Stocks to Buy Now

Core Viewpoint - The price of gold is nearing its all-time high, attracting investor interest and highlighting its role as a valuable hedge in diversified portfolios [1] Group 1: Gold Market Performance - Gold has shown strong year-to-date returns, outperforming both equities and US treasuries, with impressive returns since the start of 2022 [2] - Barrick Gold, Agnico Eagle Mines, and Eldorado Gold are highlighted as top-ranked gold mining stocks with bullish prospects for investors [2] Group 2: Advantages of Gold Mining Stocks - Gold mining stocks provide exposure to gold while also offering income through dividends, addressing concerns from investing purists about commodities lacking earnings [3] - A balanced investment strategy may include direct investment in gold and a mix of mining stocks [3] Group 3: Barrick Gold - Barrick Gold reported a 25% year-over-year increase in net earnings and forecasts earnings growth above 30% annually over the next three to five years [5] - The stock is trading at a forward earnings multiple of 16.6x, below the market average and its 10-year median of 20.7x, indicating a potentially attractive valuation [5] - Barrick Gold has a PEG ratio of 0.5 and offers a 2.1% dividend yield [7] Group 4: Agnico Eagle Mines - Agnico Eagle Mines has a Zacks Rank 2 (Buy) rating, with projected EPS growth of 28.2% annually over the next three to five years [8] - The stock is trading at a forward earnings multiple of 21.3x, below its 10-year median of 43x, suggesting a discount based on growth estimates [9] - Agnico Eagle Mines pays a 2.3% dividend to shareholders [11] Group 5: Eldorado Gold - Eldorado Gold has a Zacks Rank 1 (Strong Buy) rating, with significant upward revisions in earnings estimates for the next quarter and upcoming years [12] - The stock is trading at a forward earnings multiple of 13.1x, well below the market average and its 10-year median of 31.4x, making it the cheapest among its peers [15] Group 6: Investment Strategy - A long-term portfolio allocation of 5%-15% to gold is recommended to achieve diversification and hedging benefits without sacrificing returns from traditional stocks [16] - Focusing on high-quality gold mining stocks allows investors to benefit from rising gold prices and business growth [16]