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The broader stock market continues to trade near record highs, but some companies across the sector are below key indices such as: TSX.. In 2020, high-level tech stocks pushed the S & P 500 and TSX to record highs, with some companies in the energy sector driving the market recovery this year. However, in the first nine months of 2021, mining companies fell well below the market.
Let’s take a look at three TSX stocks trading near the 52-week low.
Newmont (TSX: NGT)(NYSE: NEM) Explore and mine gold, zinc, silver and copper. Newmont is valued at a market capitalization of $ 54 billion and operates in the United States, Canada, Australia, Peru, Bolivia, Indonesia, New Zealand, Mexico and Ghana.
Newmont stocks have fallen more than 19% year-to-date, but it’s a solid bet for investors in the long run. In 2020 It generated Sales of US $ 11.5 billion while providing 5.9 million ounces of gold. Mining giants estimate their total reserves to be 94 million ounces, with an average annual supply of 8 million ounces over the next decade.
The rise in gold prices in 2020 allowed the company to generate US $ 3.7 billion in free cash flow last year. Wall Street expects 2021 sales to grow 12.3% year-on-year to US $ 12.91 billion, but profit growth is projected to be nearly 30%.
In the next 12 months Newmont stock It is projected to reach US $ 73.5, an increase of almost 40% from current trading prices.
Pan American Silver
Pan American Silver (TSX: PAAS)(NASDAQ: PAAS) Engaged in the exploration, acquisition, development, and operation of silver-producing assets and assets. Equities have fallen 36% in the last 12 months and are valued at a market capitalization of approximately $ 6 billion.
In the second quarter of 2021, Pan American Silver produced 4.5 million ounces of silver and 142,300 ounces of gold, generating US $ 382 million in sales. The company revealed in the second quarter that silver mining was reduced due to ventilation constraints at La Colorada, COVID-19-related protocols, and a mining sequence to low-grade high-gold silver at Dolores. Did.
Pan American Silver is trading with an attractive reputation given its growth forecast. Wall Street expects its sales to grow 29.4% year-on-year to $ 1.73 billion in 2021 and 22% to $ 2.12 billion in 2022. Adjusted earnings per share is projected to increase from $ 1.16 in 2020 to $ 2.21 in 2022. ..
This indicates that the stock price is trading in multiples of 10.7 at the price up to 2022 and the price-to-sale ratio is less than 3. Analysts expect stock prices to rise 72% in the next 12 months.
The last stock on my list SilverCrest Metals (TSE: SIL) (NYSE: SILV) acquires, investigates and develops the properties of precious metals in Mexico. Its main asset is the Las Chispas project, which consists of 28 concessions totaling 1,401 hectares in Mexico.
SilverCrest’s share price fell 25% last year and is currently valued at $ 1.23 billion. Like the other two stocks on this list, Silver Crest is trading at a discounted price than analysts quote. Bay Street expects stocks to rise nearly 90% next year.
We can see that the fall in gold and silver prices has hit mining stocks hard. However, it does provide investors with the opportunity to buy low-value, high-quality stock. Given the macroeconomic uncertainties surrounding the stock market, it is quite possible that mining companies will revive after the fourth quarter of 2021.
Three TSX stocks that just hit 52-week lows
https://www.fool.ca/2021/10/06/3-tsx-stocks-that-just-hit-fresh-52-week-lows/ Three TSX stocks that just hit 52-week lows