S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

7 Precious Metals Stocks That Will Keep Your Portfolio On Trend

Posted on Thursday, April 15th, 2021 by MarketBeat Staff
7 Precious Metals Stocks That Will Keep Your Portfolio On TrendThe growing acceptance of cryptocurrency is beginning to make mainstream investors rethink their idea of “store of value.” The trendy possibilities of Bitcoin, Ethereum, and any of the dozens of altcoins that exist on the blockchain are trending like the latest fashion.

However, the thing about fashion is that the more things change the more things stay the same. Just like the simple black dress that won’t go out of fashion, the same can be said for precious metals stocks. One way to think about it would be to say that the existence of a growing cryptocurrency market doesn’t change the value of precious metals.

Precious metals have long been known to be a safe-haven asset in times of market volatility and economic crisis. In fact, during the Covid-19 pandemic, gold prices surged about 30% breaking the $2,000 mark for the first time in its history. This was at a time when the prices of many cryptocurrencies were falling.

And precious metals have also been seen as a hedge against inflation, which seems like more of a certainty with the Federal Reserve’s pledge to keep interest rates at historically low rates into 2023.

Whether you’re looking to take your first steps at crafting a precious metals portfolio or if you want to fine-tune the one you have, we believe this special presentation is a good place to start your research. We’ve identified seven precious metals stocks that look to retain their allure in 2021.

#1 - Barrick Gold (NYSE:GOLD)

Barrick Gold logo

Barrick Gold (NYSE:GOLD) is owned by approximately 53 hedge funds as of March and has nearly 60% institutional ownership. One of the most reliable metrics for looking at best stocks in a sector like precious metals is to look at institutional ownership. It’s often called the “smart money” but how I like to look at is a hedge against volatility. After all, once hedge funds and investment banks buy a stock, they are more likely to hold unto it.

Analysts are also in love with GOLD stock. 14 out of the 15 analysts that issue ratings on the company give the stock a buy or strong buy rating. The analysts also have a price target that suggests an upside of nearly 50% from the stock’s level as of this writing ($21.04).

There is no question that Barrick Gold has a high correlation with the price of the physical metal. Since reaching a high of around $30 in September (right when gold hit the $2,000/ounce mark), the stock is down nearly 30%. However, Barrick is widely considered one of the best-in-class among gold mining stocks and a logical addition to any portfolio. And for what it’s worth, the stock has moved modestly higher since the company said the window had closed for any deal with Freeport-McMoRan (NYSE:FCX).

About Barrick Gold

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.   In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick.Read More 
Current Price
$19.38
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$32.52 (67.8% Upside)




#2 - Newmont Corporation (NYSE:NEM)

Newmont logo

When looking at precious metals stocks in general, and gold stocks in particular, Newmont Corporation (NYSE:NEM) is frequently near the top of the list. One reason that the company makes this list is that it managed to effectively mitigate the effects from the pandemic. This is one reason that the company posted a blowout fourth-quarter earnings report. Earnings more than doubled year-over-year (YOY) and revenue was up nearly 14% YOY.

And like many mining stocks, Newmont Corporation offers a dividend and managed to increase the dividend in the last quarter. This is another testament to how well the company managed the pandemic.

After falling nearly 14% in the first two months of 2021, NEM stock has rallied and recovered almost all of its losses. The company is expected to report earnings in early May. A strong report will be a bullish signal for the stock.

Newmont has nearly 80% institutional ownership and has a consensus buy rating and price target that suggests an upside for the stock of nearly 18%. The company is currently rated by 13 analysts.

About Newmont

Newmont Corp. is a gold producer, which engages in the production of gold. It operates through the following geographical segments: North America, South America, Nevada, Australia, and Africa. The North America segment consists primarily of carlin, phoenix, twin creeks and long canyon in the state of Nevada and Cripple Creek and Victor in the state of Colorado, in the United States.Read More 
Current Price
$55.94
Consensus Rating
Buy
Ratings Breakdown
7 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$71.66 (28.1% Upside)




#3 - Kinross Gold Corporation (NYSE:KGC)

Kinross Gold logo

Rounding out our list of the “usual suspects” among gold mining stocks is Kinross Gold Corporation (NYSE:KGC). One of the appealing elements of KGC stock is that, right now, investors can get the stock for under $10 per share.

Of the gold mining stocks we’ve looked at, Kinross has the smallest percentage of institutional ownership at around 50%. However, analysts are very bullish on the stock. 9 of the 11 analysts that rate Kinross have a buy rating with a consensus price target of $11.57 that would be a 61.34% gain from the stock’s current level.

Kinross posted better-than-expected fourth-quarter earnings that nearly doubled YOY. Revenue was also up 20% YOY. KGC stock is down 10% year-to-date but is still up nearly 20% (19.7%) for the year.

Investors who are looking for optimism can point to the management team’s expectations for production to increase by 20% in the next three years. And this growth would be concurrent with falling production costs. If that scenario occurs, getting in on KGC stock at under $10 will be a real bargain.

About Kinross Gold

Kinross Gold Corp. operates as an exploration company. It engages in the production, acquisition, exploration and development of gold bearing properties in Canada, United States, the Russian Federation, Brazil, Ecuador, Chile, Ghana and Mauritania. The products are gold and silver produced in the form of dore.Read More 
Current Price
$6.13
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$10.16 (65.7% Upside)




#4 - Wheaton Precious Metals (NYSE:WPM)

Wheaton Precious Metals logo

Wheaton Precious Metals (NYSE:WPM) is one of the largest metals streaming companies in the world. The company pays mining companies a fixed up-front payment to help develop a project. In exchange, Wheaton gets rights to purchase a portion of the production at a fixed cost.

Of course, the company can then sell those metals at their current market price and pocket the difference. It’s an efficient business model that makes the company an attractive investment. Like the other stocks we’ve listed, Wheaton had a strong fourth quarter with earnings and revenue solidly beating expectations.

Since the beginning of 2020, institutions have been increasing their purchases of WPM stock. Currently, the stock enjoys about 60% institutional ownership. 

Of the 15 analysts that offer a rating for WPM stock, 11 give the stock a buy rating. And the consensus price target of $57.73 is a 43% increase from the stock’s current price.

In the short term, Wheaton may experience a little headwind as the company digests its acquisition of Capstone Mining’s Santo Domingo Project. Although the $290 million that Wheaton is spending is not payable all at once, analysts will be looking for further guidance to see how that may affect the company’s earnings.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. is a mining company, which engages in the sale of precious metals and cobalt production. It operates through the following segments: Gold, Silver, Palladium, Cobalt, and Other. It focuses on the following precious metals streams: Salobo, Penasquito, Antamina, Constancia, Stillwater, San Dimas, Sudhury, Zinkgruvan, Yauliyacu, Neves-Corvo, Pascua-Lama, Rosemont, Voisey's Bay, and others.Read More 
Current Price
$41.98
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$55.00 (31.0% Upside)




#5 - Endeavour Silver Corp. (NYSE:EXK)

Endeavour Silver logo

The next stock on our list is another low-priced precious metals stock. As its name suggests, Endeavour Silver Corp. (NYSE:EXK) primarily mines silver from mines in Mexico and Chile. Many precious metals analysts are more excited about the likely growth in silver even as gold has begun to trend higher.

Unlike many stocks on this list EXK stock is down slightly in 2021. However over the last 12 months, investors have been handsomely rewarded with a gain of 231%. Among analysts the stock has a consensus buy rating with a price target of $6.31 that represents a nearly 20% gain from its current level.

Currently the company has only about 17% institutional ownership, but interest has picked up sharply in the last three quarters, most likely correlating with the rise in silver prices. An investment in EXK stock is likely to be volatile, but with institutional interest rising along with the price of silver, this could be a profitable mining stock in 2021.

About Endeavour Silver

Endeavour Silver Corp. operates as a mineral company. It engages in the evaluation, acquisition, exploration, development and exploitation of precious metal properties in Mexico and Chile. The firm's projects include Terronera property in Jalisco, El Compas property, Guanacevi Mine in Durango, Bolanitos Mines in Guanajuato, and Parral project in Chihuahua, Mexico.Read More 
Current Price
$4.81
Consensus Rating
Hold
Ratings Breakdown
3 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$6.98 (45.0% Upside)




#6 - Platinum Group Metals (NYSEAMERICAN:PLG)

Platinum Group Metals logo

For investors looking to invest in platinum, Platinum Group Metals (NYSEAMERICAN:PLG) looks to be an intriguing option. The company is a development-stage exploration company for platinum and palladium. However, in addition to mining those precious metals, the company explores for a range of other metals including gold.

With a beta of 2.31 this is not a stock for the risk-averse, however, PLG stock is up 144% over the last 12 months. And that’s despite being down 21% so far in 2021. A big reason for the stock’s meteoric ascent is its interest in the Waterberg project in South Africa.

Covid-19 hit projects in Africa very hard. And as supply was crimped, demand for platinum and palladium is growing. Specifically, in the case of platinum, the metal is being used in green hydrogen production processes.

Platinum Group Metals has about 32% institutional ownership but from the third quarter to the fourth quarter, an increasing number of hedge funds had a stake in PLG stock.

About Platinum Group Metals

Platinum Group Metals Ltd. operates as a mining company. It focuses on production of platinum and palladium. The firm deals with waterberg project located on the Northern Limb of the Bushveld Complex in South Africa. The company was founded by R. Michael Jones on January 10, 2000 and is headquartered in Vancouver, Canada.
Current Price
$2.34
Consensus Rating
N/A
Ratings Breakdown
0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
N/A




#7 - Coeur Mining (NYSE:CDE)

Coeur Mining logo

The last stock on our list of precious metals stocks to buy is Coeur Mining (NYSE:CDE). The company is a diversified precious metals producer that operates five mines across North America. This is one of the oldest miners, with over 90 years of experience which makes it a stable alternative despite being in a high beta sector. This is partly evidenced in the nearly 60% institutional ownership in the stock.

The company has seen a gain of over 400% since the selloff sparked by the novel coronavirus. Part of that was due to the company’s ability to get mining operations up and running at the same time that commodity prices were rising.

Investors looking to buy Coeur Mining may want to wait until the company’s earnings report is released in late April. Around that time, analysts may weigh in with a more favorable outlook. Right now, they project CDE stock to fall about 8%.

About Coeur Mining

Coeur Mining, Inc engages in the exploration and development of silver and gold mining properties and mines located in United States, Canada and Mexico. The company operates through the following segments: Palmarejo, Rochester, Kensington, Wharf, and Silvertip. Coeur Mining was founded in 1928 and is headquartered in Chicago, IL.
Current Price
$5.73
Consensus Rating
Buy
Ratings Breakdown
2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$9.33 (62.9% Upside)



 

Some investors may believe that rising yields and a stronger dollar will dilute the value of precious metals. Hopefully as you’ve gone through this presentation, you can see that just as Bitcoin may be the building block for a lot of cryptocurrencies; gold is only the beginning of building a precious metals portfolio.

In fact, the “typical” precious metals portfolio is likely to include gold, silver, platinum, and palladium. The latter two are used in many of the sectors that will drive the economy forward.

And with many of those sectors expected to continue to be the growth sectors for the next several years, the table is set for nice growth in precious metals. Plus you get the peace of mind that comes from knowing they will always be a port in the storm.

Investors who are concerned about investing in a single metal or any single company (like the ones in this presentation) may want to consider one of the many precious metals exchange-traded funds that focus on precious metals.

Analysts Hate These 10 Stocks

When a single Wall Street analyst downgrades one of your stocks, you might think they are just having a bad day or have an incorrect investment thesis. One downgrade typically won't have a significant impact on the price of one of your stocks, but what if analysts repeatedly downgraded a company over the last 30, 60, or 90 days? You would know something is seriously wrong.

Today, we invite you to take a free exclusive look at our up-to-the-minute list of 10 "Most Downgraded" stocks. These are true strong sell stocks. Analysts are abandoning them in droves and issuing rare downgrades and sell ratings. If any of these stocks are lurking around in your portfolio, seriously consider whether or not they still belong in your portfolio. .

View the "Analysts Hate These 10 Stocks" Here.





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