5 Best Gold Stocks To Buy Right Now

3. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 47    

Barrick Gold Corporation (NYSE:GOLD) is one of the favorite gold stocks among hedge funds. In October, the company announced that it was on track to meet the targets for the year after a strong performance during the third quarter in which sales stood at over 1 million oz of gold while production was around 1.09 million oz. The production between June and September this year was up 5% from the previous quarter. 

In late September, KeyBanc analyst Adam Josephson initiated coverage of Barrick Gold Corporation (NYSE:GOLD) stock with a Sector Weight rating, noting that the valuation of the firm seemed “fair” in the present environment. 

At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Barrick Gold Corporation (NYSE:GOLD), down from 49 the preceding quarter worth $1.3 billion.

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”