Commodities & Metals

Jefferies Likes Gold: 2 Top Mining Stocks to Buy Now

Lee Jackson

Published: March 31, 2016 10:45 am

Last Updated: January 13, 2020 11:18 am

If any sector has had a rough go of it over the past four years, it has been mining and precious metals. Since peaking in 2011, gold appears finally to have bottomed last December, and it has made a serious upside move since. The problem for investors is that many of the top stocks in precious metals and mining made that move as well, and as a result they are in many cases fully valued now.

In a new Jefferies research report, gold is touted as the firm’s favorite commodity now. With Chinese demand starting to ratchet back up, and with some supply constraints starting to factor in, the firm has a modestly better outlook factored in. However, the analysts feel that the recent positives are already factored into most stocks’ current prices. Two companies remain Buys, and both make sense for long-term aggressive growth portfolios.

Newmont Mining

This is one of the largest mining companies, as well as a solid buy for growth accounts. Newmont Mining Corp. (NYSE: NEM) is a leading gold and copper producer. It has approximately 29,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru, Indonesia and Suriname. Newmont is the only gold producer listed in the S&P 500 index, and it was named the mining industry leader by the Dow Jones Sustainability World Index in 2015.

The company posted mixed quarterly results recently. While the earnings missed the Wall Street estimates, revenues actually came in above estimates. The company has lowered debt almost 19% since the end of 2014, a huge positive for investors.

24/7 Wall St.
2 Oil Services Companies May Benefit Big When Iran Returns to Oil Market