Wall Street is starting to see the bullish momentum fade as the tariff expiry is less than one month away. On top of that, Israel’s strikes on Iran have caused tensions to soar much further. Many expect the conflict to last weeks or even months. This could even spiral beyond just Israel and Iran, involving the U.S. directly.
As a consequence, oil prices are already soaring, and stocks worldwide have taken a dip.
The best bet right now looks to be defensive assets. No one knows how the events could unfold in the coming weeks. And with the S&P 500 recently nearing all-time highs, it’s not a bad idea to sit back and go defensive.
Gold is what most people think will be the biggest beneficiary. And they’re likely right.
Here’s a gold stock that is up over 110% in the past month and could double again.
As long as gold sustains its price, Kinross Gold (NYSE:KGC) seems well-positioned to continue rallying. The company has several construction projects slated this year and in the coming years, along with record cash flow and buybacks due to surging profits from existing production.
Q1 was solid, as free cash flow reached $389 million from $133 million in Q1 2024. Debt has been reduced from $2.72 billion in Q1 2023 to $1.24 billion, alongside buybacks.
Despite all that, KGC stock is still trading slightly below its historical PE ratio of 16 times. The 3-year FCF growth rate is at 70.5% annually, whereas the 3-year revenue growth rate is at 31% annually. Both are above historical figures, and recent events mean the growth will likely stick around longer than previously thought. All those things point to a higher premium being paid by Wall Street in the coming months for KGC stock.
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