Gold Miners ETF (GDX)

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Best Gold Stocks To Buy In June
By: Vladimir Zernov | May 31, 2022

• Newmont Corporation and Barrick Gold will benefit from the continuation of the gold market rebound.

Key Insights

• Gold found support near the $1800 level and is trying to settle above the $1850 level.
• Gold stocks have also started to rebound as speculative traders moved back into this market segment.
• Newmont and Barrick Gold are trading at 16 forward P/E, which is a reasonable valuation for leading gold mining companies.

Shares of gold stocks have recently rebounded as Treasury yields pulled back from highs. Leading gold stocks will likely lead the way in case this rebound continues.

Newmont Corporation

Analyst estimates for Newmont have been moving higher in recent months despite the pullback in gold markets.

Currently, the company is expected to report earnings of $4.12 per share in the current year and $4.18 per share in the next year, so the stock is trading at 16 forward P/E.

While Newmont is not extremely cheap, traders are ready to pay a premium for one of the leading gold mining companies of the world. The stock will remain one of the primary bets on the potential upside in the gold markets due to Newmont’s size and its diversified portfolio of mines.

Barrick Gold

Barrick Gold is another leading gold stock that is trying to rebound after the recent strong pullback. Currently, Barrick Gold is trading at 16 forward P/E, in line with Newmont.

Analyst estimates for Barrick Gold have moved a bit lower in recent months, and it remains to be seen whether this trend will change in the upcoming weeks in case gold prices stay near current levels.

At the same time, the stock will remain a solid bet on gold markets for the same reasons as Newmont. Reasonable valuation and the diversified portfolio of mines will serve as strong catalysts for Barrick in case the gold price continues to move higher and settles above the recent highs near the $1865 level.

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