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3 Cheap Gold & Silver Stocks to Buy Right Now as Haven Prices Surge

Published 07/28/2020, 02:59 AM
Updated 07/09/2023, 06:31 AM

Stocks slipped in morning trading Tuesday, as one of the biggest weeks for corporate earnings heats up. Shares of 3M MMM, Mcdonald's MCD, and Raytheon (NYSE:RTN) RTX all slid after they posted earnings, while Pfizer PFE popped.

Wall Street now awaits reports from other economic bellwethers such as Boeing BA, Visa (NYSE:V), and Procter & Gamble (NYSE:PG). And, of course, most eyes will be focused on Apple AAPL, Amazon AMZN, Facebook (NASDAQ:FB) FB, and Google parent Alphabet (NASDAQ:GOOGL) GOOGL on Thursday.

There has been a slowdown in the broader market and tech in the last month, and many are calling for a tech pullback similar to what Microsoft MSFT experienced last week. It will be hard to live up to the hype and many investors might use earnings as a chance to take profits.

Meanwhile, as tech continues to hog much of the spotlight, gold prices hit another record Monday. The precious metal is now up 27% in 2020 and the recent surge comes as economic reopenings slow and tensions between the U.S. and China mount. Silver prices have also surged, and the U.S. dollar hit two-year lows because investors see interest rates remaining low and the coronavirus continuing to hamper growth.

Goldman Sachs GS recently raised its 12-month forecast from $2,000 an ounce for gold to $2,300—it sits at around $1,949 right now—citing concerns about the U.S. dollar’s role as the global reserve currency status. “Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows,” Goldman strategists wrote.

With this in mind, it might be time for investors to take advantage of rising gold and silver prices. Let’s dive into three such stocks trading under $20 per share that could be enticing…

Equinox Gold (NYSE:EQX) EQX

Prior Close: $12.13 USD

Equinox Gold is a mining company that’s producing gold from six mines right now and is expanding. The Canadian firm has said it’s “rapidly advancing toward its vision of producing one million ounces of gold annually.”

EQX topped our bottom-line estimate last quarter and its revenue soared from $35.4 million in the year-ago period to $130 million. CEO Christian Milau also noted that its $350 million of cash on hand helps put the firm “in a strong financial position and fully funded for its organic growth plans.”

EQX shares have surged 56% in 2020 to crush the S&P 500’s sideways movement and its industry’s 21%. Our current Zacks estimates call for Equinox’s adjusted fiscal 2020 earnings to soar 255% to $1.03 per share, on the back of 184% sales growth that would see it reach $800.2 million.

EQX is expected to follow up this growth with another 76% revenue expansion in FY21 and 31% stronger earnings. Equinox’s earnings revisions have soared recently to help it earn a Zacks Rank #2 (Buy), alongside its “B” Grade for Growth and “A” for Momentum in our Style Scores system.

Gold Fields (NYSE:GFI) Limited GFI

Prior Close: $13.47 USD

Gold Fields is a gold producer that has nine operating mines spread across Australia, Peru, South Africa, West Africa, and Chile. The firm, which is listed on the Johannesburg Stock Exchange, with American depositary shares on the NYSE, hopes to be a “global leader in sustainable gold mining.”

The gold miner’s shares have jumped 100% in 2020 and 75% since mid-June. This is part of a larger run that’s seen GFI surge 265% in the past 24 months from under $3 a share to its current price.

Gold Fields is a Zacks Rank #2 (Buy) right now, supported by its impressive longer-term earnings revisions. GFI sports an overall “A” VGM score and is part of the highly ranked Mining – Gold industry. And Gold Fields’ dividend yield roughly matches the 10-year U.S. Treasury note.

On top of that, its adjusted earnings are projected to climb by 36% in FY20 and another 134% in FY21, while its revenue is expected to jump 41% and 13.4%, respectively.

Coeur Mining (NYSE:CDE)CDE

Prior Close: $8.24 USD

Coeur Mining is a precious metals producer that has five operations in North America, which features a mixture of gold and silver, as well as zinc and lead. CDE stock has rallied 225% since mid-March and 75% in the last month, as silver prices surge.

In addition to being a haven investment, silver has industrial uses that include photovoltaic cells for solar energy. Despite its recent run of success, Coeur still rests well below the $15 a share it traded at in 2016, and it jumped to a new 52-week high on Tuesday.

CDE is set to report its Q2 results after the market closes on Wednesday, July 29. The firm’s quarterly sales are expected to slip 4.5% from the year-ago period, while its adjusted loss is expected to shrink. Peeking further ahead, however, its Q3 sales are projected to jump 19%.

Plus, its fiscal 2020 revenue is projected to climb 10%, with FY21 expected to come in 23% higher and hit $959.5 million. Meanwhile, it is expected to swing from an adjusted loss of -$0.25 a share +$0.20 per share in fiscal 2020, with its FY21 EPS figure projected to soar all the way to +$0.56 a share.

CDE is part of the Mining - Non Ferrous industry that rests in the top 11% of our more than 250 Zacks industries. Coeur is also a Zacks Rank #2 (Buy) that rocks an “A” grade for Momentum and a “B” for Growth.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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

Microsoft Corporation (NASDAQ:MSFT): Free Stock Analysis Report

The Boeing Company (NYSE:BA): Free Stock Analysis Report, Inc. (NASDAQ:AMZN): Free Stock Analysis Report

The Goldman Sachs Group, Inc. (NYSE:GS): Free Stock Analysis Report

Apple Inc. (NASDAQ:AAPL): Free Stock Analysis Report

Pfizer Inc. (NYSE:PFE): Free Stock Analysis Report

3M Company (NYSE:MMM): Free Stock Analysis Report

McDonalds Corporation (MCD): Free Stock Analysis Report

Gold Fields Limited (GFI): Free Stock Analysis Report

Coeur Mining, Inc. (CDE): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Raytheon Technologies Corporation (NYSE:RTX): Free Stock Analysis Report

Equinox Gold Corp. (EQX): Free Stock Analysis Report

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