In this article, we will be taking a look at the 5 best gold stocks to buy for portfolio diversification.

5. Wheaton Precious Metals Corp. (NYSE:WPM)

Wheaton Precious Metals Corp. (NYSE:WPM) sells precious metals, primarily gold, silver, palladium, and cobalt. It is based in Vancouver, Canada.
Ingrid Rico, an analyst at Stifel, holds a Buy rating on Wheaton Precious Metals Corp. (NYSE:WPM) shares as of April 20.

In the fourth quarter, Wheaton Precious Metals Corp. (NYSE:WPM) generated revenues of $236.05 million, beating the previous quarter’s revenues of $218.84 million. With 10 Buy ratings and two Hold ratings placed on the stock, analysts on Wall Street consider it a Strong Buy.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 28 hedge funds were long Wheaton Precious Metals Corp. (NYSE:WPM). Their total stake value was $672 million.

4. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 29
Rio Tinto Group (NYSE:RIO) explores, mines, and processes mineral resources, including gold, diamonds, and copper. It is based in London, United Kingdom.

On March 30, Richard Hatch at Berenberg reiterated a Buy rating on Rio Tinto Group (NYSE:RIO) shares.

An average price target of $95.64 has been placed on Rio Tinto Group (NYSE:RIO) shares by analysts on Wall Street. The shares were trading at $63.29 on April 27. This gives the stock an upside potential of 51.21%.

There were 29 hedge funds long Rio Tinto Group (NYSE:RIO) in the fourth quarter, with a total stake value of $2.6 billion.

3. Barrick Gold Corporation (NYSE:GOLD) 

Number of Hedge Fund Holders: 40

Barrick Gold Corporation (NYSE:GOLD) explores, produces, and sells gold and copper properties. The company is based in Toronto, Canada.

Analysts at Barclays hold an Overweight rating on Barrick Gold Corporation (NYSE:GOLD) shares as of April 21.
With seven Buy ratings and four Hold ratings placed on Barrick Gold Corporation (NYSE:GOLD), analysts consider the stock to be a Moderate Buy. They have placed an average price target of $22.73 on the shares, which were trading at $19.07 on April 27. This gives them an upside potential of 19.25%.

Barrick Gold Corporation (NYSE:GOLD) had 40 hedge funds long its stock in the fourth quarter, with a total stake value of $721 million.
Old West Management, an investment management company, mentioned Barrick Gold Corporation (NYSE:GOLD) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.

Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA”

2. Agnico Eagle Mines Limited (NYSE:AEM) 

Number of Hedge Fund Holders: 41

Agnico Eagle Mines Limited (NYSE:AEM) explores, develops, and produces mineral properties, primarily gold deposits. It is based in Toronto, Canada.

An Overweight rating was reiterated on Agnico Eagle Mines Limited (NYSE:AEM) on April 21 by Matthew Murphy at Barclays.
Agnico Eagle Mines Limited (NYSE:AEM) generated revenues of $1.38 billion in the fourth quarter. This represented an increase of 45.9%. The company’s EPS for the quarter was $0.41, in line with estimates.
A total of 41 hedge funds were long Agnico Eagle Mines Limited (NYSE:AEM) in the fourth quarter. Their total stake value was $613 million.
Old West Management, an investment management company, mentioned Agnico Eagle Mines Limited (NYSE:AEM) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”

1. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 50
Newmont Corporation (NYSE:NEM) produces and explores gold. It is based in Denver, Colorado.

Mike Parkin, an analyst at National Bank, holds an Outperform rating on Newmont Corporation (NYSE:NEM) shares as of April 18.
The average price target placed on Newmont Corporation (NYSE:NEM) shares by analysts on Wall Street is $58.06, with a high forecast of $67. The shares were trading at $47.94 on April 27. This gives them an upside potential of 21.13%.

Newmont Corporation (NYSE:NEM) was found among the 13F holdings of 50 hedge funds in the fourth quarter, with a total stake value of $991 million.

Source: www.insidermonkey.com