There’s no question Canadian gold stocks are some of the cheapest stocks you can buy on the market today.
Gold prices have declined over the last year, but these stocks have sold off far further as investors have looked for opportunities in this ever-evolving market.
And while that’s understandable, it’s resulted in many of these stocks trading ultra-cheap. And as we saw Wednesday, when gold prices rally just a little bit, many gold stocks can see rapid price increases.
So if you don’t have any gold exposure or just want to take advantage of how cheap these stocks are, here are three of the best Canadian gold stocks to buy today.
An ultra-cheap Canadian gold stock to buy now
One of the first gold stocks I’d consider buying today is Kinross Gold (TSX: K)(NYSE: KGC).
Kinross is one of the larger gold stocks in Canada, with a market cap of nearly $9 billion. However, despite it being a significant producer, with diverse operations worldwide, including the United States, South America, and Africa, the stock has still seen a substantial decline over the past year.
Today Kinross is so cheap that it trades at just 10.8 times its forward price-to-earnings ratio. Furthermore, its forward enterprise value (EV) to EBITDA ratio is just 3.6 times, which is extremely cheap.
The stock even pays a dividend which now yields 2.2%. This way you can collect a decent amount of passive income while you wait for the stock to rally back to its fair value.
So if you’re looking for a larger, more established gold stock that still has a tonne of upside potential, Kinross is one of the best to buy today.
A top gold stock for growth investors
In addition to Kinross, another gold stock that’s a screaming buy today is Equinox Gold (TSX: EQX). Equinox has slightly more risk since it’s a growth stock. However, it also offers far more growth potential, in my opinion.
Because in addition to being extraordinarily cheap and trading at a forward price-to-earnings ratio of just 11 times, it also has significant growth potential over the next few years, making it one of the most intriguing gold stocks you can buy today.
So far, year-to-date, the stock is down more than 30%, compared to Kinross, which is down a little over 20%. So clearly, Equinox stock is trading cheap. Plus, while the company is expected to produce 600,000 ounces of gold this year, that’s expected to exceed 1,000,000 ounces of annual production by 2024.
This significant increase in Equinox’s production will be a major contributor to the stock’s growth. So that near-term growth potential coupled with the fact that it’s so far undervalued makes it one of the best gold stocks to buy today.
A top stock for dividend investors
Finally, here’s one of the cheapest stocks in the gold industry and easily one of the best investments for Canadian investors to buy today, B2Gold (TSX: BTO)(NYSEMKT: BTG).
B2Gold is a low-cost gold producer with almost no debt that earns massive amounts of cash flow each quarter. At current prices, B2Gold is so cheap that its forward price-to-earnings ratio is just 6.2 times. And while Kinross had an ultra-low EV/EBITDA ratio of just 3.6 times, B2Gold’s forward EV/EBITDA is only 2.6 times.
This shows just how cheap B2Gold is today and why it’s such a top gold stock to buy in this environment. Plus, because it’s such a cash cow, the company returns a tonne of cash to investors. And because the stock is so cheap, its dividend currently yields an impressive 4.5%.
So if you’re looking for a high-quality Canadian gold stock to buy while the sector trades undervalued, these three are some of the best stocks to consider.
