Gold Jumps 26% YTD: Add These 5 Mining Stocks to Your Portfolio
Gold has gained around 26% year to date and is currently trading near $3,030 per ounce, supported by geopolitical risks and a weaker U.S dollar. Reports of a potential strike by Israel on Iranian nuclear sites and a possible retaliation from Iran have raised concerns that the Middle East conflict could escalate. U.S President Trump’s indication that he might not mediate the Russia and Ukraine ceasefire talks added to the uncertainty. The U.S. dollar remains under pressure after the Fed’s cautious economic outlook and Moody’s downgrade of the U.S. credit rating. Investor sentiment has been rattled by uncertainty over tariff policies and the impending vote on Trump’s major tax reforms.Riding on this momentum, the Zacks Mining - Gold industry has climbed 39.1% year to date, significantly outperforming the Zacks Basic Materials sector’s 6.4% rally and the S&P 500’s modest 0.7% rise. Investors should consider companies like Newmont NEM, Agnico Eagle Mines AEM, Barrick Mining Corporation (B), Kinross Gold KGC and New Gold NGD, which are poised for growth, backed by their strong balance sheets and expansion plans. Image Source: Zacks Investment Research Robust Gold Demand in 2025 Set to Drive PricesPer the World Gold Council, gold demand reached 1,206 tons in the first quarter of 2025, the highest quarterly total since 2016. Central banks acquired around 244 tons and accounted for roughly 20% of the total.Investment demand soared 170% year over year to 552 tons, marking the strongest quarter since the first quarter of 2022. Bar and coin demand was 325 tons, 15% above the five-year quarterly average. China drove the major portion of this increase, posting its second-highest quarter of retail investment.Global gold ETFs saw significant inflows of 226.5 tons, as price momentum and tariff policy uncertainty drove investors to gold as a safe haven. Inflows continued in April with 115.3 tons, bringing the year-to-date total to 341.9 tons. April marked the fifth consecutive monthly increase and was the strongest in more than three years. China led these gains, posting a third month of ETF inflows.Technology demand was at 80.5 tons, in-line with the last-year quarter. However, owing to the elevated gold prices, jewelry demand was down 19% year over year at 434 tons, the lowest since the COVID-19-induced slump in 2020.Central banks are expected to continue the 1,000-ton-plus buying streak. Investment demand is likely to stay strong, supported by geopolitical risks, tariff uncertainties and an expected acceleration in U.S. deficits.However, jewelry demand may remain impacted. Technology demand is anticipated to soften amid waning global growth. However, AI-related demand should provide some support. With solid demand and tight supply, gold prices are well-positioned for an upside.5 Gold Stocks to Add to Your PortfolioWe have handpicked five gold-mining stocks, which currently flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy) and have a VGM Score of A or B, with earnings growth potential.You can see the complete list of today’s Zacks #1 Rank stocks here.Newmont: The company completed the integration of Newcrest assets (which were acquired in November 2023), solidifying its position as the world's largest gold producer with growth opportunities in copper. NEM is also divesting non-core businesses as it shifts its strategic focus to Tier 1 assets.Newmont has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects, meet short-term debt obligations and drive shareholder value. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Panel Caves in Australia, which are expected to expand production capacity and extend mine life, driving revenues and profits.Headquartered in Denver, CO, Newmont has a trailing four-quarter earnings surprise of 32.4%, on average. The Zacks Consensus Estimate for NEM’s 2025 earnings indicates year-over-year growth of 12.6%. The company has a long-term estimated earnings growth of 14.2%. Newmont currently flaunts a Zacks Rank #1 and has a VGM Score of A. Agnico Eagle Mines: The company has a strong liquidity position and generates substantial cash flows, which allow it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. The company is focused on executing projects that are expected to provide additional growth in production and cash flows. It is advancing the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas. The Hope Bay Project, particularly, with proven and probable mineral reserves of 3.4 million ounces, is expected to play a significant role in generating cash flow in the coming years.The Zacks Consensus Estimate for the Toronto, Canada-based gold mining company’s 2025 earnings indicates year-over-year growth of 42.2%. AEM has a trailing four-quarter earnings surprise of 12.3%, on average. The company has a long-term estimated earnings growth of around 19%. Agnico Eagle Mines currently sports a Zacks Rank #1 and has a VGM Score of B. Barrick Mining: The company is well-placed to benefit from the progress in key growth projects that should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are being executed. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production.Barrick Mining has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt.The Zacks Consensus Estimate for Toronto, Canada-based Barrick Mining’s 2025 earnings suggests year-over-year growth of 34.7% for 2025. The company has a long-term estimated earnings growth of 33.6%. It has a trailing four-quarter earnings surprise of 12.5%, on average. B flaunts a Zacks Rank #1 and has a VGM Score of A at present.Kinross Gold: The company’s strong liquidity position and substantial cash flows allow it to finance its development projects while paying down debt and driving shareholder value. Kinross Gold has a strong production profile, and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow, and deliver significant value.Kinross Gold also completed the commissioning of its Manh Choh project and commenced production in the third quarter of 2024, leading to a substantial increase in the cash flow at the Fort Knox operation. Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production.The Zacks Consensus Estimate for this Toronto, Canada-based gold mining company’s earnings for fiscal 2025 indicates 52.2% year-over-year growth. KGC has a trailing four-quarter earnings surprise of 16.1%, on average. Kinross Gold has a long-term estimated earnings growth of 21.2%, a Zacks Rank #2 and a VGM Score of A at present.New Gold: The company recently consolidated its interest in the New Afton mine to 100%, increasing its future free cash flow. NGD projects gold production to grow 37% between 2024 and 2027. This will be driven by increasing production profiles at both Rainy River and New Afton as growth projects are completed and ramped up in the near term. Gold production is expected to average more than 400,000 ounces over the three years.The company is expected to see a 65% reduction in AISC over the next three years, leading to a margin expansion of more than $2,500 per ounce by 2027. The updated Rainy River life-of-mine plan maintains a strong gold production profile. It is expected to produce 300,000 ounces of gold per year over the next three years. New Afton is expected to produce an average of 125,000 ounces of gold per year.The Zacks Consensus Estimate for Toronto, Canada-based New Gold’s 2025 earnings suggests year-over-year growth of 91.25%. The company has a trailing four-quarter earnings surprise of 79.2%, on average. NGD has a Zacks Rank #2 and a VGM Score of A at present.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report New Gold Inc. (NGD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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