Best gold stocks in June 2024

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The best gold stocks included above all trade on a major U.S. stock exchange and meet the following criteria:

  • Consensus analyst recommendation of “buy” or better. A high number of analyst “buy” ratings indicates an expectation that the stock will outperform the overall market.
  • Market capitalization of at least $2 billion. Stocks with less than a $2 billion market cap are considered small and microcap stocks and are often among the most volatile and risky stocks listed on major exchanges. Stocks with market caps above $2 billion are likelier to have analyst and media coverage and plenty of trading liquidity.
  • Pays a dividend. Dividends can be an excellent source of income and compound returns for investors. In addition, dividend payments represent tangible value and are a positive reflection of a healthy underlying business.
  • Trading volume. We screened for companies with an average daily trading volume of at least 50,000 shares and an average daily trading value of at least $1 million.
  • An Altimeter risk level of A or B. The Altimeter risk grade is calculated based on a company’s credit rating, management sentiment and a fundamental forensic assessment of its financial health. Screening for stocks with the lowest financial risk helps reduce the chances of significant downside.
  • Lower P/E ratio compared to large peers. Many gold stocks have higher valuations than the overall market. A low but positive P/E implies a company is generating higher earnings than its valuation.

Why other stocks didn’t make the cut

Many top gold mining stocks are high-quality companies with financial visibility and long-term production outlooks. But there are some large players with extremely high valuations, where the market is already pricing in its future earnings.

Investors should also note that several junior gold exploration stocks are extremely high-risk investments. It takes a long time and a lot of money to go through the process of acquiring properties, proving reserves and building an operating mine, and many small and microcap exploration companies never survive long enough to mine their first ounce of gold.

In addition, low-quality gold mines can quickly become uneconomical if the price of gold drops, so investors should focus on companies that have economical production costs even during cyclical declines in gold prices.