Top 3 NYSE Gold Stocks

DRDGold Limited, Wheaton Precious Metals Corp., and Franco-Nevada Corporation were among the top three gold mining companies, whose stocks experienced the most significant growth in earnings per share. In today’s article, we will look at the financial performance of these companies, conduct a technical analysis of their stock price charts, and examine gold price trends.

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Selection criteria for companies

• The companies are not classified as funds
• The stock is traded on the NYSE
• The sector is basic metals
• EPS growth for the past 5 years is over 20%
• Return on investment is over 5%
• Their market capitalisation is over 500 million USD

Return on investment and market capitalisation of the companies were valid as of the time of writing on 24 October 2023.

1. DRDGold – 133.83%

Founded in: 2003

Registered in: South Africa

Headquarters: Johannesburg

Return on investment: 21.53%

Market capitalisation: 0.79 billion USD

DRDGold Limited specialises in gold mining and processing of gold-bearing materials. The key characteristic of its operations is the processing of tailings originated in the process of precious metal extraction and enrichment to recover the gold they bear.

DRDGold Limited released its fiscal 2023 report on 23 August 2023. Revenue increased by 7.38% to 292.55 million USD from the previous financial year, net profit rose 14.04% to 68.13 million USD, and EPS added 13.63%, reaching 0.08 USD. According to Finviz, EPS growth for the past 5 years is 133.83%.

Technical analysis of DRDGold Limited stock

DRDGold Limited (NYSE: DRD) stock value climbed 29.5% from 7.25 to 9.35 USD since 3 January 2023, hitting its 2023 high of 13.47 USD on 8 May and an annual low of 6.56 USD on 6 March.

Since 8 May 2023, the quotes have been moving within a descending channel. The RSI values gained a foothold below a bearish trend line. This breakout may signal that the prices could move beyond the channel. Such a scenario may create conditions for a price rise to the resistance level at 10.50 USD. Should this level be breached, the target for buyers could be an annual high of 13.47 USD. A negative scenario for bulls could be a breakout of the support level with the price securing below 8.00 USD.

2. Wheaton Precious Metals – 62.54%

Founded in: 2004

Registered in: Canada

Headquarters: Vancouver, British Columbia

Return on investment: 8.98%

Market capitalisation: 19.55 billion USD

Wheaton Precious Metals Corp. acquires rights to buy specific amounts of gold and silver from mining companies at fixed or reduced prices.

Wheaton Precious Metals Corp. published its Q2 2023 report on 10 August 2023.

Revenue for April to June decreased by 10.61% from the corresponding period of 2022, down to 268.47 million USD, net profit sank by 3.04%, down to 143.32 million USD, and EPS was down 6.06%, reaching 0.31 USD. According to Finviz, Wheaton Precious Metals Corp.’s EPS showed a growth of 62.54% for the past 5 years.

Technical analysis of Wheaton Precious Metals stock

Wheaton Precious Metals Corp. (NYSE: WPM) shares gained 9.10% since January 2023, rising from 39.51 to 43.11 USD per share. The price reached a 2023 high of 52.42 USD on 4 May and an annual low of 38.02 USD on 4 October.

On a daily time frame, Wheaton Precious Metals Corp. quotes are moving within a long-term bullish channel. On 26 September 2022, they rebounded from the lower boundary of the channel.

A significant resistance area for buyers is located at 52 USD. If the quotes break this level, they could leave the descending corrective channel, signalling the potential development of a full-fledged bullish movement.

In such a scenario, the next growth targets are likely to be the 60 and 65 USD marks. A negative scenario for buyers could develop if the price finds a foothold below 35 USD, indicating a possible breakout of the lower boundary of the ascending channel.

3. Franco-Nevada – 28.11%

Founded in: 1983

Registered in: Canada

Headquarters: Toronto, Ontario

Return on investment: 9.92%

Market capitalisation: 27.06 billion USD

The core operations of Franco-Nevada Corporation involve the provision of financing to mining companies in exchange for a share in metal mining.

Franco-Nevada Corporation released the Q2 report on 8 August 2023. Revenue for April to June 2023 decreased by 6% to 329.9 million USD from the corresponding period of 2022, and net profit was down 6% to 182.9 million USD or 0.96 USD per share. According to Finviz, Franco-Nevada Corporation's EPS showed an increase of 28.11% for the past 5 years.

Technical analysis of Franco-Nevada stock

Franco-Nevada Corporation (NYSE: FNV) share price rose 2.46% since the beginning of 2023, from 136.55 to 139.90 USD per unit, hitting its 2023 high of 160.49 USD on 8 May and an annual low of 121.45 USD on 21 February.

Since September 2018, the quotes have been moving within a long-term bullish channel. On 9 October 2023, they pushed off the 200-day Moving Average again, which could indicate pressure from buyers.

The nearest growth target for bulls could be the resistance level at 165 USD. Its breakout might allow the prices to leave the bearish corrective channel marked with black lines on the price chart.

In such a scenario, the next growth target is likely to be the upper channel boundary at 205 USD. A negative scenario for bulls could develop if the price gains a foothold below 120 USD.

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Summary

The top 3 gold mining companies with the highest EPS growth for the past 5 years are DRDGold Limited, Wheaton Precious Metals Corp., and Franco-Nevada Corporation.

A surge in EPS of the companies covered in this article may also be attributed to a significant rise in gold prices over this period. The metal value soared nearly 70% since January 2017.

The World Gold Council (WGC) data shows that demand for gold surged 176% in Q1 2023 from the same period of 2022. Given this, conditions for further upward movement of gold prices are likely to prevail, which could have a positive impact on gold stocks in the future.

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