Stocks to buy

With so much uncertainty on the horizon, concerned investors that also want to secure some sweet profits should target the top gold mining companies with growth potential. Practically speaking, mining enterprises offer convenient exposure to precious metals. While collecting physical bullion is fun, it’s also cumbersome and incurs security risks.

On the other hand, the best gold stocks for aggressive investors are just that – stocks. Simply, they’re much easier to secure than physical gold. More importantly, the miners tend to accelerate more robustly than the underlying commodity’s spot price. Of course, that also means that you’re carrying significant risks, particularly if you focus on gold exploration companies with promising prospects. Nevertheless, with the economy suffering from stubborn inflation now may be an ideal time to consider precious metals.

WPM Wheaton Precious Metals $44.65
BTG B2Gold $3.76
SBSW Sibanye Stillwater $7.09

Wheaton Precious Metals (WPM)

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Right off the bat, the main criticism about Wheaton Precious Metals (NYSE:WPM) in the context of top gold mining companies with growth potential will be the latter component: unlike many other gold-related entities, WPM doesn’t offer extremely robust upside prospects. That said, WPM does bring enough potential rewards to make investors think carefully.

According to data from TipRanks, analysts peg WPM as a consensus moderate buy. This assessment breaks down as seven buys, three holds and zero sells. As well, the experts’ price target clocks in at $53.97, implying nearly 21% upside potential. Understandably, those seeking the best gold stocks for aggressive investors may want more rewards. But bear with me for a moment.

Wheaton specializes in the streaming business model, which involves a pre-arranged agreement for a company to purchase all or part of the mining enterprise’s metals production in exchange for cash upfront. Therefore, Wheaton’s business commands far greater predictability than standard miners, making it one of the gold mining stocks with high upside and high predictability.

B2Gold (BTG)

Source: Alexander Limbach / Shutterstock

One of the more “traditional” examples of gold exploration companies with promising prospects, B2Gold (NYSEAMERICAN:BTG) is an exciting opportunity. Getting off to an auspicious start, some of the latest distractions – such as the debt ceiling issue which just reached a tentative deal – began clouding BTG’s narrative. For the year, shares have only gained a bit more than 2%. Nevertheless, such a framework could be enticing for speculators.

For one thing, covering analysts peg BTG as a consensus strong buy. Their assessment breaks down as five buys, one hold and significantly zero sells. More importantly for the discussion of gold stocks for explosive returns, the experts’ price target lands at $6.12, implying nearly 63% upside potential. Also, the high target of $7.50 implies a near-doubling of market value.

Financially as well, the company more than holds its own. Notably, B2Gold is a highly profitable enterprise, featuring a trailing-year net margin of 14.16%. That’s above 79.57% of companies listed in the metals and mining industry. As well, it enjoys stability in the balance sheet, making it one of the top gold mining companies with growth potential.

Sibanye Stillwater (SBSW)

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One of my favorites among top gold mining companies with growth potential, South Africa-based Sibanye Stillwater (NYSE:SBSW) intrigues in part because of the vast natural resources its home country enjoys. As well, Sibanye represents a major player in other precious metals, including palladium and platinum. The former metal carries geopolitical significance as Russia historically dominated the palladium market.

Unfortunately, SBSW carries high risks due to longstanding issues associated with labor disputes. Earlier this year, Reuters reported that the negative impact of a months-long strike at its South African mines and floods at its U.S. operations necessitated a profit downgrade for its fiscal 2022.

As distracting as these headwinds are, Wall Street analysts still like SBSW (at least so far). Overall, the consensus stands at a strong buy with an average price target of $12.53. If shares do manage to hit that level, speculators may see upside of nearly 77%. Financially, Sibanye levers strong operational stats: its three-year revenue growth rate pings at 20%, while its EBITDA growth rate during the same period impresses at 48.2%. Also, its net margin clocks in at 13.3%, outflanking nearly 79% of the field.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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