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Chicago, IL – May 23, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AngloGold Ashanti plc AU, Newmont Corp. NEM, Gold Fields Ltd. GFI and B2Gold Corp. BTG.
Here are highlights from Thursday’s Analyst Blog:
In recent weeks, gold mining stocks have experienced a significant rise in valuation. The primary driver has been the surge in gold prices, which reached a two-week high of $3,336.43/ounce on May 21. This increase is attributed to investor concerns over the U.S. government's escalating debt, weak demand for long-term treasury bonds and a declining U.S. dollar, making gold more attractive to international buyers. It had last hit its high on May 9.
Historically, gold has rallied when bonds become less attractive. This is because higher interest rates increase the burden on holding gold, as it does not pay a yield. Hence, in an environment where interest rates are lower, gold investment springs up as a major option, and stocks like AngloGold Ashanti plc, Newmont Corp., Gold Fields Ltd. and B2Gold Corp. come into the fray.
Geopolitical tensions and fiscal uncertainties are also prompting investors to seek safe-haven assets like gold. Eroding confidence in the Trump administration's fiscal and monetary policy is fueling gold's upward movement. This bullish sentiment toward gold directly benefits gold mining companies. As gold prices rise, these companies experience increased profit margins, especially those with efficient operations and lower production costs.
Market participants are optimistic about the sector's prospects. Firms like Goldman Sachs and JP Morgan have forecasted that gold prices could climb to $4,000/ounce by 2026, suggesting continued bullish momentum. Such projections further bolster investor confidence in gold mining stocks, anticipating sustained profitability and growth. Bullion has gained 27% so far in 2025, making it one of the best-performing assets.
Earlier in the year, gold prices had scaled record levels with investors flocking to safe-haven assets following President Donald Trump's decision to impose tariffs on Canada, Mexico and China. The threat of potential levy imposition on the European Union also loomed, thus intensifying inflation fears. Central banks, especially in emerging markets, have heavily increased gold purchases to reduce their dependence on the U.S. dollar. These purchases have provided a steady support base for gold, reinforcing its upward momentum.
In summary, the rise in gold mining stocks is driven by increasing gold prices amid economic uncertainties, improved profitability of mining companies and a perception of undervaluation in the market. Hence, astute investors should consider such stocks at present.
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today's Zacks #1 Rank stocks here.
AngloGold Ashanti is a gold mining company operating in Africa, Australia and the Americas. AU's expected earnings growth rate for the current year is 57.5%. The Zacks Consensus Estimate for its current-year earnings has improved 39.8% over the past 60 days. AU is a Zacks Rank #1 company and has a VGM Score of B.
Newmont Corporation is a gold properties exploration company. NEM's expected earnings growth rate for the current year is 12.6%. The Zacks Consensus Estimate for its current-year earnings has improved 25.2% over the past 60 days. NEM is a Zacks Rank #1 company and has a VGM Score of A.
Gold Fields is a gold producer operating in Chile, South Africa, Ghana, Canada, Australia and Peru. GFI's expected earnings growth rate for the current year is 50.8%. The Zacks Consensus Estimate for its current-year earnings has improved 7.6% over the past 60 days. GFI is a Zacks Rank #1 company and has a VGM Score of B.
B2Gold Corp. is a gold producer from Canada. BTG's expected earnings growth rate for the current year is 231.3%. The Zacks Consensus Estimate for its current-year earnings has improved 35.9% over the past 60 days. BTG is a Zacks Rank #2 company and has a VGM Score of A.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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