Precious metals like gold and silver usually hold a special place in long-term investors’ portfolios because of the diversification they offer. They act as a store of value and a safe haven in times of uncertainty. Though precious metals don’t promise  returns as high as many stocks, they do help investors navigate times of crisis. For instance, last August, when the COVID-19 public health crisis was at its peak, gold hit $2,000 per ounce for the first time.

Thorsten Polleit, the chief economist at precious-metals company Degussa Goldhandel, stated: “The gold bull market can be expected to continue not only in 2021 but well beyond.” At the same time, the London Bullion Market Association (LBMA) predicted that silver will be  the best-performing metal in 2021.

Gold and silver mining stocks are the most popular ways to gain exposure to these precious metals without buying the metals themselves. Agnico Eagle Mines Limited (AEM - Get Rating), Great Panther Mining (GPL - Get Rating), and Iamgold Corporation (IAG - Get Rating) are three gold and silver mining stocks that have demonstrated robust performance, and Wall Street analysts expect them to perform well in the near term.

Agnico Eagle Mines Limited (AEM - Get Rating)

AEM is a Singaporean company that explores for, develops, and produces minerals in Canada, Europe, Latin America, and the United States.

During the full year ended December 31, 2020, AEM’s revenue increased 60.6% year-over-year to S$519 million. Its Equipment Systems Solutions (“ESS”) business accounted for 96.6% of the Group’s total revenue. Its profit before tax climbed 78.6% year-over-year to S$113.8 million.

Of 12 analysts that have rated AEM, nine rated it Buy. Also, the consensus price target of $85.09 represents  a potential upside of 43.5%.

Analysts expect AEM’s revenue for the quarter ending March 31, 2021 to be $967.7 million, representing a 44% year-over-year rise. EPS is likely to grow at the rate of 38.8% per annum over the next five years.

AEM has risen  56.6% over the past year to close yesterday’s trading session at $59.28. Over the past six months, the stock retreated  21%.

It’s no surprise that AEM has an overall B rating, which equates to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

AEM has a B grade  for both Growth and Momentum. In the B-rated  Miners – Gold industry, it is ranked #17 of 45 stocks.

In addition to the POWR Rating grades we’ve  just highlighted, you can see  AEM ratings for Stability, Value, Quality and Sentiment here.

Great Panther Mining Ltd. (GPL - Get Rating)

GPL explores for and mines precious materials. The company operates through the following segments: Operations; Coricancha, Exploration, and Corporate.

There are two that cover GPL. Both have rated GPL as a Buy. Also, a consensus price target of $1.95 indicates a potential upside of 147.6%.

During the fourth quarter, ended December 31, 2020, GPL’s revenue climbed 31.3% year-over-year to $260.8 million. The company reached break-even in the quarter versus a loss per share of $0.33 posted in the prior year period.

Analysts expect GPL’s revenue for the quarter ending March 31, 2021 to be $63.8 million, representing a year-over-year increase of  32.8%. Its EPS for the quarter is likely to grow 200% to $0.02.

GPL ended yesterday’s trading session at $0.79, rallying 146.8% over the past year. During the past six months, GPL declined 4.8%.

Due to its bright prospects, GPL has an overall B  which translates to a Buy in our POWR Rating system. GPL has a Value, Sentiment, and Momentum Grade of B. In the F-rated, 14-stock Miners – Silver industry, it is ranked #1.

Click here to see the additional POWR Ratings for GPL (Stability, Quality, and Growth).

Iamgold Corporation Ordinary Shares (IAG - Get Rating)

IAG is involved in the exploration, development, and operation of gold mining properties in Africa, South America, and Canada.

Of eight analysts that have rated IAG, two rated it Buy and six rated it Hold. Also, a consensus price target of $4.30 indicates a potential upside of 38.3%.

During the fourth quarter ended December 31, 2020, IAG’s revenue climbed 18.3% year-over-year to $347.5 million. Its EPS for the quarter was $0.12 compared to a loss per share of $0.65 posted in the same period last year. The company produced 169000 oz of gold during the quarter. Its net cash flow from operations during the quarter was $128.7 million.

A consensus revenue estimate for the full year ended December 31, 2021 is $1.3 billion, indicating a 4.9% year-over-year increase. Its EPS for the period is likely to grow 94.7% to $0.37.

IAG ended yesterday’s trading session at $3.11, climbing 40% over the year. During the past six months, IAG has declined 14%.

IAG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. IAG has a Growth, Value, and Momentum Grade of B. In the Miners – Gold industry, it is ranked #16.

To see additional POWR Ratings for Stability, Sentiment, and Quality for IAG, Click here.

The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

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AEM shares were trading at $59.19 per share on Wednesday afternoon, down $0.09 (-0.15%). Year-to-date, AEM has declined -16.05%, versus a 4.95% rise in the benchmark S&P 500 index during the same period.

About the Author: Namrata Sen Chanda

Namrata is an accomplished financial journalist, with nearly a decade of experience. She specializes in interpreting news releases and framing investment strategies, and has worked with some of the leading companies in real estate, banking, insurance, mutual funds, financial research, fintech, and investment education. More...

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