5 Great Stocks For True Gold Bugs
For much of the past year, gold has been one of the best investments. During that time frame, gold has traded between $1,317.40 and $1,923.70 per ounce. While that range comprises a 46% increase, gold has increased 26.72% over the past twelve months. Compare that to the S&P 500 which has increased a relatively measly 2.86% over those same twelve months. Below, we look at five gold stocks to determine whether the shiny metal will continue its winning ways. Please consider this analysis as a starting point for your own research.
Barrick Gold Corporation (ABX): Shares recently traded around $49, about the middle of its 52-week trading range of $42.50 to $55.95. At this price, Barrick has a market capitalization of is $49.32 billion. Earnings per share for the past twelve months are $4.17. The current dividend of $0.49 per share yields 1%.
The main driver in the price of Barrick’s shares is the price of gold. Since gold has historically been considered a safe haven in times of economic turmoil, it’s not too surprising that gold has had such a stellar year. Barrick’s has experienced a nice 29.7% rate of revenue growth over the past year. Again, this can be directly linked to gold’s performance. The company does maintain very nice margins, with a gross margin of 60.11% and an operating margin of 46.20%. That performance is almost double that of competitor AngloGold Ashanti Ltd. (AU) who has grown revenues by 11.0% and has margins of 36.40% and 24.01% (gross vs. operating). If you want to play in the gold space, Barrick is a good choice. To continue reading, click here
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