3 Gold Stocks Wall Street Loves

Here is a quick look at three gold stocks Wall Street analysts absolutely love: Newmont Corp. (NEM), Wheaton Precious Metals (WPM), and Kirkland Lake Gold (KL).

Newmont Corp. (NEM)

The analysts are in love with NEM, establishing an average price target of $75.36. If NEM were to rise to this level, it would have increased by 32.68% in value. The analysts' high target price for NEM is $88. Of the 21 analysts to have issued recommendations on the stock, 11 view it as a Buy, five views it as a Hold, and five consider it a Strong Buy.

NEM has an overall POWR Ratings grade of B indicating it is a Buy. The stock has B grades in the Quality and Momentum components. Click here to find out more about how NEM fares in the remainder of the POWR ratings components such as Sentiment, Value, and Growth.

NEM is ranked 18th of 46 publicly traded companies in the Miners - Gold category. Click here to find out more about the stocks that make up the Miners - Gold segment.

NEM has a reasonable forward P/E ratio of 15.22. The stock's dividend is just under 3%. Though NEM’s fourth-quarter earnings revealed sales are a bit sluggish, the results as a whole surpassed expectations. NEM's net income increased from $537 million in the fourth quarter of '19 to $806 million in the fourth quarter of '20. NEM revenue is up nearly 14% on a year over year basis.

Wheaton Precious Metals (WPM)

WPM is one of the largest precious metals businesses in the world. WPM revenue stems from the sale of gold, palladium, and silver. The company’s streaming agreement pertains to nearly 20 operating mines across nine projects.

The analysts are incredibly bullish on WPM, setting an average price target of $60.56. If WPM were to rise to this level, it would have spiked by nearly 70%. The highest price target for the stock is $74. Of the 16 analysts who have issued recommendations for WPM. seven consider it a Buy, four consider it a Strong Buy, and five consider it a Hold.

WPM has an A grade in the Quality component of the POWR Ratings along with a B grade in the Momentum component. Click here to find out more about how WPM grades out in the remainder of the POWR Ratings components. Of the 14 stocks in the Miners - Silver category, WPM is ranked fourth. You can learn more about the stocks in this category by clicking here.

WPM's forward P/E ratio of 23.78 is higher than that of some other stocks in the precious metals sector yet this is still a fairly reasonable ratio.

Kirkland Lake Gold (KL)

Based in Toronto, KL is a rapidly expanding gold production business. KL’s assets are in Canada and Australia, where exploration activities occur daily. These exploration programs are centered on identifying the locations of mineral resources.

KL has a low forward P/E ratio of 9.24. The company's stock is currently trading around $23 below its 52-week high of $57.69.

KL has a POWR Ratings grade of C along with an A grade in the Quality component and Bs in the Momentum and Value components. If you are curious as to how KL grades out in the Sentiment, Growth, and Stability components of the POWR Ratings, click here.

KL is ranked 26th of 46 stocks in the Miners - Gold industry. You can learn more about the stocks in this industry by clicking here.

The analysts have established an average price target of $51.50 for KL, meaning it might pop by 51.6% in the months ahead. Of the six analysts who issued recommendations for the stock, three consider it a Buy, two consider it a Hold and one considers it a Strong Buy.