2 Cheap Gold Stocks to Buy Right Now

Looking for value stocks in a high market? Explore cheap gold stocks with growth potential.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While the stock market has been roaring with a rally since the depths of the pandemic market crash in March 2020, gold stocks are one of the few areas in the market that have sold off. Here are two cheap gold stocks that you can consider buying right now if you have little exposure to the precious metal.

Barrick Gold stock

Barrick Gold (TSX:ABX)(NYSE:GOLD) is a large-cap gold producer that has an investment-grade balance sheet. Its S&P credit rating is BBB. Gold prices have retreated about 8% from a year ago, which is partly why the producer reported much lower profitability for its third quarter (Q3) earlier this month. Compared to a year ago, Q3 revenues fell 2% to US$2.8 billion, and adjusted net earnings fell off a cliff by 42% to US$419 million. On a per-share basis, it was a 41% decline to US$0.24.

Its year-to-date results display a more resilient bigger picture. Revenue fell 7% to US$8.7 billion, adjusted net earnings rose marginally by 1% to US$1.4 billion, and adjusted earnings per share of US$0.81 similarly improved by 1%. The decline in revenue was largely due to lower commodity prices versus last year when gold prices ran up from pandemic fear and a rush to gold — a safe-haven asset.

One analyst can be biased, which is why I prefer to look at the analyst consensus price target. Currently, 17 analysts rate Barrick Gold stock with five strong buys, eight buys, and four holds. Their 12-month price target is US$27.40 per share, or 33% higher than the recent quotation of US$20 and change per share.

Equinox Gold stock

Compared to Barrick Gold, as a mid-cap producer with a relatively strong growth profile, Equinox Gold (TSX:EQX)(NYSE:EQX) stock should be less susceptible to gold price volatility. The gold producer has seven producing mines and is working on five growth projects.

One of its growth projects is the Santa Luz project. Because it is a past-producing mine, the gold producer can relatively quickly set it up to produce gold. Management expects the first gold pour to occur in Q1 2022. Alongside Orion, as a major developer with a 60% share, Equinox Gold is also building the largest gold mine in Canada — the Greenstone project. Management estimates that Greenstone will add approximately 240,000 ounces per year to Equinox’s production. This project alone will add 40% of production compared to its 2021 levels. However, the first gold pour for Greenstone isn’t expected until the first half of 2024.

Equinox Gold could potentially grow production by 93% per year from 2021 to 2024. This means even when gold prices fall, the producer could still significantly boost its profitability through 2024.

Because of its small size, only two analysts cover the gold stock. So, there could still be bias. Both rate Equinox gold as a “buy.” Their 12-month price target is US$10.60 per share, or approximately 28% higher than the recent quotation of US$8 and change per share.

Because of Equinox’s multi-year growth plan, stock investors should be patient and be ready to hold for a few years to potentially reap better rewards.

Should you invest $1,000 in Dollarama right now?

Before you buy stock in Dollarama, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Dollarama wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Kay Ng owns shares of Equinox Gold.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Metals and Mining Stocks

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Best Stock to Buy Right Now: Barrick Gold vs Agnico Eagle?

Agnico-Eagle Mines stock continues to soar off of strong results while Barrick Gold grapples with political troubles in its African…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Stocks for Beginners

What to Know About 2 Canadian Mining Stocks for 2025

Mining stocks can be a strong investment, or a bit of a wild ride. So where do these two top…

Read more »

nugget gold
Metals and Mining Stocks

2 Gold Stocks to Consider in the Wake of Trump Tariffs

Investing in gold mining stocks such as Kinross can help you diversify your portfolio and lower overall risk.

Read more »

Metals and Mining Stocks

Value Hunters: It’s Time to Snap Up These TSX Gems

Investing in undervalued gems such as MAG Silver should help you beat the broader markets in 2024 and beyond.

Read more »

A plant grows from coins.
Stocks for Beginners

3 Top Basic Materials Sector Stocks for Canadian Investors in 2025

These three Canadian stocks certainly have a strong future ahead, and now might be time to buy the dip.

Read more »

todder holds a gold bar
Stocks for Beginners

Outlook for Barrick Gold Stock in 2025

Gold stock Barrick may have proven itself in the past, but with geopolitical issues on hand, should investors move elsewhere?

Read more »

nugget gold
Metals and Mining Stocks

Gold Stocks in 2025: Why Royalty Stocks May Outshine Miners

When gold prices surge, mining stocks are typically the better picks. But when there is uncertainty about the metal, royalty…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

Better Mining Stock: First Quantum vs Teck Resources?

These two mining stocks offer huge returns and income for investors. But one does seem a bit riskier than the…

Read more »