Why Gold Stocks are a Hidden Opportunity in 2024
Why Barrick Gold (GOLD) is a Strong Momentum Stock
Why Gold Is So Safe?
For both new and seasoned investors, capitalizing on stock market trends and making confident investment choices are key objectives. One company that is currently gaining attention as a strong momentum stock is Barrick Gold (GOLD).
Barrick Gold Overview
Barrick Gold Corporation, headquartered in Toronto, Canada, is one of the world’s largest gold mining companies, with operations spanning five continents. The stock's recent performance and metrics suggest it could be an attractive option for momentum investors.
Key Momentum Indicators
Barrick Gold has achieved notable price action in recent weeks, with shares up 3.2% over the past week and 3.8% over the past month. Even more impressive is the stock's 41.4% gain over the past year. The company's trading volume has also been strong, with an average of 16.9 million shares traded daily over the last 20 days. This robust activity supports its high Momentum Style Score of A and VGM Score of B.
Earnings Performance
For fiscal year 2024, Barrick Gold has received positive revisions from analysts. In the last 60 days, four analysts have raised their earnings estimates, with the Zacks Consensus Estimate increasing by $0.11 to $1.27 per share. Additionally, the company boasts an impressive average earnings surprise of 21.2%, demonstrating its ability to exceed market expectations.
Why Investors Should Consider Barrick Gold
With its combination of strong earnings growth, positive momentum, and high Zacks Rank (#1 Strong Buy), Barrick Gold is positioned as a top choice for investors seeking to capitalize on current market trends. The company’s outlook, particularly in a favorable gold market environment, suggests that there may be significant room for future gains.
Why Gold Stocks are a Hidden Opportunity in 2024
The broader market for gold is also experiencing a historic rally. Gold prices recently hit an all-time high of $2,670 per ounce, marking a 27% gain since the beginning of the year. If this momentum continues, 2024 could be the best year for gold since 2010.
Key Drivers of Gold's Rally
Central Bank Easing: Global central banks, including the Federal Reserve, are entering a new phase of monetary easing. The recent 50-basis-point rate cut by the Fed has reduced the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment.
Inflation Hedge: As investors grow wary of inflation and financial instability, gold's role as a hedge has become more prominent. Western retail investors, in particular, are increasingly turning to gold for portfolio diversification.
Gold Mining Stocks: The Real Opportunity
While physical gold and ETFs tracking gold prices have captured the attention of investors, gold mining stocks like Barrick Gold present an even more attractive opportunity. These stocks remain undervalued relative to the rising price of bullion, making them potentially more lucrative for those seeking exposure to the gold rally.
Conclusion
Barrick Gold, with its strong momentum, earnings growth, and high Zacks Rank, is well-positioned as a standout stock in 2024’s bull market for gold. As the broader gold market continues to rally, driven by central bank policy shifts and demand for inflation hedges, gold mining stocks like Barrick offer a compelling investment opportunity for those looking to capitalize on the trend.