With inflation rising, investors are looking for a safe place to park their money. According to the Consumer Price Index (CPI) from November, inflation of 6.8% was the highest in 39 years. Fannie Mae, the government-backed mortgage supporter, projects inflation to grow to an average of 7% in the first quarter of 2022, before falling to 3.8% by the end of the year.
Gold has long been considered the gold standard for an inflation-hedging investment. Instead of purchasing physical gold, investors can find the top gold stocks to invest in.
Using TipRanks’ stock screener, I have identified 5 gold stocks with a Strong Buy consensus rating from analysts. While they might not prove to be gold mines for investors, all of these stocks could prove to be a good choice for safe sailing through the inflation ahead.
Kinross Gold (KGC)
Canadian company Kinross Gold engages in the production, acquisition, exploration and development of gold bearing properties in Canada, the United States, Russia, Africa, and South America. In the past 3 months, nine analysts have given Kinross a Buy rating, and one analyst has given it a Hold. With an average analyst rating of Strong Buy and an average KGC price target of $8.75, the implied upside is 54.6%.
While KGC has dropped 26.9% this year, its earnings beat estimates in the most recently reported quarter. Moreover, it has a “Perfect 10” Smart Score, supported by positive sentiment by bloggers and investors, increased purchases by hedge funds, increased insider activity, and 4.03% asset growth in the trailing twelve months.
In another positive for the company, Kinross Gold reported free cash flows of $182.8 million in Q2 2021, implying an annualized FCF of almost $800 million.
Kirkland Lake Gold (KL)
Kirkland Lake Gold Ltd., a Canadian company, engages in the mining, development, and exploration of gold properties. This Strong Buy stock has an average KL price target of $47.23, implying upside of 13.9%. In the past three months, three analysts have given it a Buy rating, and one has given it a Hold.
The stock dropped by 2.7% year-over-year, but it showed an earnings beat in the most recently reported quarter, and its quarterly dividend has held steady since the company increased in in December 2020.
RBC analyst Josh Wolfson gave Kirkland Lake a Buy rating and a $50.00 price target. He commented that the company’s Q321 production and costs were better than estimated, and production is moving along the top end of guidance. He is also heartened by the expected completion of the Macassa shaft project, on track for late 2022.
Wheaton Precious Metals (WPM)
Wheaton Precious Metals Corp. is a Canadian mining company that engages in the sale of precious metals, including gold, and cobalt production. With nine Buy and one Hold rating, this stock is clearly…
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