Positive: 5 gold stocks expected to exceed earnings estimates due to strong gold market performance.

From Nasdaq: 2024-07-23 13:12:00

Gold prices started strong in the second quarter, reaching a peak of $2,464.50 an ounce with an 18% increase year-over-year. Factors like geopolitical tensions and central bank purchases contributed to gold outperforming other assets. Companies like AEM, GOLD, KGC, RGLD, and IAG are expected to exceed earnings estimates this season.

Global central banks have increased gold reserves, with net demand in the first quarter reaching a record high of 290 tons. 29% of central banks plan to boost reserves in the next year. Asia led global ETF inflows at $2.4 billion in the second quarter, driven by Chinese demand amid stock market and RMB fluctuations.

India and China account for 50% of gold consumer demand, with strong buying despite higher prices. Gold miners have increased production to capitalize on trends, though rising input costs may impact margins. Gold miners are expected to deviate from sector-wide earnings and revenue declines, with gold outperforming other assets this year.

Companies like AEM, GOLD, KGC, RGLD, and IAG are expected to surpass earnings estimates this season. AEM, scheduled to report on Jul 31, is predicted to show a 32% improvement in earnings. Companies like GOLD and KGC are also forecasted to improve earnings despite certain challenges like higher production costs.



Read more at Nasdaq:: 5 Gold Stocks Set to Outshine Earnings Estimates in Q2