4 Low P/E Gold Stocks Just Hit New 52-Week Highs, Then Dropped

The combination of a gold stock with a low price-earnings ratio is hard to resist for a certain type of value investor. The precious metals sector this year is outperforming most high P/E tech and social media stocks. Many gold and silver stocks still look classically cheap — with P/E’s that remain far below that of the market as a whole.

The basic understanding of this phenonmenon among analysts is that interest rate cuts lead to inflation and gold is considered the inflation hedge of choice. Other factors such as the economic effects of tariffs also lead to precious metals investing. Beyond that, increased fear of world events benefits the sector.

4 Low P/E Gold Stocks With Recent New Highs

Fortuna Mining:

Based in Vancouver, this gold and silver miner operates in its home country as well as in Peru, Argentina and West Africa. The market capitalization is $2.67 billion. The price earnings ratio is 16. The debt-to-equity ratio is .16. Earnings this year are up 77% and up over the past three years by 19%.

Fortuna’s price joined in the Friday metals sell-off and dropped 8.52%. This, after it had blasted up on Wednesday and Thursday to that new 52-week high near $9.75. The stock dropped below the red-dotted uptrend line that had connected the early August low with the September dip.

Despite the slide, the price remains above the uptrending 50-day moving average and well above the uptrending 200-day moving average. Note that Friday’s selling volume is diminished from the previous session.

Harmony:

The South African mining company has a market cap of $12.46 billion. This year’s earnings are up 115%. The price-earnings ratio is 15.84. The debt-to-equity ratio is .04. Harmony pays a dividend of 3.46%. HSBC Securities in early October upgraded its opinion of the stock from “hold” to “buy.”

The price peaked on Thursday at just above $22 and spent Friday giving back about three days worth of gains – finishing the day down 8.86%. Nevertheless, it remains above uptrending 50-day and 200-day moving averages. The relative strength indicator (RSI, below the price chart) has dropped out of the “overbought” zone.

Iamgold:

Market cap is $7.68 billion for this Toronto-based miner with operations in North America and West Africa. The price-earnings ratio is 9.66. Market cap is $7.68 billion. The debt-to-equity ratio is .35. Earnings are up 49% this year. The stock trades at 2.24 times its book value.

Friday’s slide of 8.74% comes the day after hitting a new high the day before at near 14.75. The red-dotted uptrend line that connects the early August dip with the October low remains intact. Despite the big sell-off, the stock continues to trade well above both the uptrending 50-day and 200-day moving averages.

Newmont:

This is the gold miner with the biggest market cap: $99.71 billion. That factor results in Newmont receiving the most attention from Wall Street, whether it’s noticed by artificial intelligence programs or actual human beings. The price-earnings ratio is 16.30. The company offers investors a 1% dividend.

Down 7.63% on Friday, the stock remains above that red-dotted uptrend line connecting the mid-June drop with the August dip, the September dip and the earlier-in-October dip. The price trades above uptrending 50-day and 200-day moving averages, despite the sudden pre-weekend plunge.

Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

No artificial intelligence was used in the writing of this post.

More analysis and commentary at johnnavin.substack.com.