Gold stocks look particularly interesting this week, with bargains popping up within the wider market downturn. Alternative investors can consider Barrick Gold Corp. (NYSE: GOLD) for its low price and potential upside. Barrick is a mining company with more than 71 million ounces of gold reserves under its control. Average earnings growth over the past five years is 44.1%, compared to 33.2% for the gold mining industry. The stock is currently trading 37.2% below its fair market value.
Gold insider buying has increased in recent weeks. Lower prices have enabled insiders to buy shares on the dip. The downwards movement in gold stocks is linked to the overall decline in the market, but the fundamental value of gold remains high. Alternative investors will find that gold is complementary to stocks that they already own. Gold is a major component used in battery technology (key to renewable energy storage) as well as in solar panels.
There’s an average target price of $21.65 on this stock, and it currently pays a dividend with a yield of 1.76%. Investors looking for a long term alternative investment and who are willing to buy just above traditional ‘bargain’ pricing can consider this stock today. Alternatively, investors could wait another week to track the health of the market. There’s potential for this stock to become even more affordable.
- 1 Year Price Growth: 13%
- YTD Price Growth: -14.58%
- 3 Month Price Growth: -11.43%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.