It's Time to Buy Stocks of These Big Gold Miners as Markets Drop - August 2, 2024

Investors may turn their attention to gold amid heightened market volatility, with Friday’s jobs report showing the U.S. labor force cooled while the unemployment rate rose to 4.3%, its highest since 2021.

With gold often sought after for its defensive safety during times of economic uncertainty, it’s worth noting that the Zacks Gold & Mining sector is currently in the top 22% of all 250+ Zacks sectors. That said, here are three of those top gold mining stocks to consider right now.

Agnico Eagle Mines (AEM – Free report)

Zacks Rank #2 (Buy)

Agnico Eagle Mines has been one of the most intriguing gold producers, with its stock up over +37% this year, impressively outperforming the broader indices and the Zacks Mining-Gold Market’s +21%.

Agnico Eagle Mines’ rising profitability has been the catalyst for its extended rally, with fiscal 2024 EPS now expected to climb 58% to $3.52 from $2.23 per share last year. It’s worth noting that Agnico Eagle Mines earns an “A” grade on the Zacks Style Scores for Growth, and its 2.1% annual dividend yield has also piqued investor interest.

Image Source: Zacks Investment Research

Barrick Gold (GOLD – Free report)

Zacks Rank #2 (Buy)

Barrick Gold, one of the world’s largest gold producers, is certainly worth considering, with a share price below $20 and a forecast earnings of 15.7X. Additionally, Barrick Gold’s EPS is expected to climb 38% this year and FY2025 earnings are expected to climb another 32% to $1.53 per share.

Barrick Gold’s stock is all the more attractive given that it has an annual dividend yield of 2.19%, which has increased 13-fold over the past five years. Moreover, its 45% payout ratio suggests there is significant room for further dividend increases.

Image Source: Zacks Investment Research

FrancoNevada (FNV – Free report)

Zacks Rank #1 (Strong Buy)

Rounding out the list is Franco-Nevada Corporation, a gold-focused royalty and stream company with additional interests in silver and platinum group metals, among other resources. Franco-Nevada offers an annual dividend of 1.13%, which it has increased 14 times over the past five years, with a payout ratio of 41%.

The fact that earnings estimates have continued to rise over the past quarter, with FY24 and FY25 EPS estimates up 10% and 8% respectively over the past 30 days, indicates that now is a great time to buy Franco-Nevada shares.

Image Source: Zacks Investment Research

Take away

With investors likely to focus on stocks that can offer defensive safety, these top gold mining stocks should be viable options amid heightened market volatility.