If you traveled back in time to the last day of 2015, gold looked like it was at risk of finally dropping under $1,000, and the Dow Jones Industrial Average and the S&P 500 were still expected to have a very modest gain in 2016. That was then. The Dow is now down 8% and gold is up nearly 12%, close to $1,200 per ounce.
It turns out the saying “there’s always a bull market somewhere” has come back to gold. The shiny yellow metal has screamed higher now that Japan and Europe both have negative interest rates and now that the rate hike plan from the United States may be on a serious hold. Global uncertainty and central banks continuing to need gold are fueling this fire.
24/7 Wall St. could not ignore that there have been many gold stocks among the top winning stocks since the end of 2015. Again, the Dow was last seen down about 8%. We took a look at the performance in each stock, versus a year ago and the end of 2015. Seven gold stocks valued at $500 million or more have risen over 40% year to date, and one of those is up over 100%. We have added color and relevant trading data on each.
Harmony Gold Mining Co. Ltd. (NYSE: HMY) is still down over 15% from a year ago, but its stock is up a whopping 161% from the end of 2015. Harmony recently reported positive earnings and is said to be looking for acquisitions and debt repayments. Harmony’s all-in sustainable cost of gold production was shown to be down 15% to roughly $950 per ounce. Shares were last seen trading at $2.45, in a 52-week trading range of $0.53 to $2.80. Its consensus analyst target price is $1.70, and its market cap is $1.1 billion. Harmony Gold was a $15 stock in 2011.
Sibanye Gold Ltd. (NYSE: SBGL) is up 10% from this time in 2015 but is up 85% year to date in 2016. If you haven’t heard of Sibanye, you might not be alone. It operates in South Africa with proved and probable gold reserves of about 28.4 million ounces (end of 2014) and probable uranium reserves of approximately 102.5 million pounds. Its stock was recently trading at $11.18, compared to its 52-week trading range of $4.07 to $11.59. Its consensus target price is $13.39 and its market cap is $2.6 billion.
Barrick Gold Corp. (NYSE: ABX) is still down 2% from a year ago, but it is up over 61% so far in 2016. Barrick is among the largest gold stocks in world, and it could be a significant acquirer if it chooses to be. BMO Capital Markets recently reiterated its Outperform rating and raised its target to $13.50 from $10.50. Barrick Gold recently traded at $11.65, within a 52-week trading range of $5.91 to $13.70, and it was a $50 or so stock in 2011. Its consensus target price is $10.25, and its market cap is $13.6 billion.