Gold is in the midst of a fierce bull market run right now, thanks in part to mounting uncertainties regarding Trump’s trade policy. Indeed, tariffs, trade wars, and more have weighed quite heavily on the U.S. dollar (though it has provided a bit of relief for the loonie’s value relative to the greenback) while sparking significant momentum in the precious metals scene.
While some make the argument that gold is getting just a tad on the pricey side, I’d argue that many of the top gold mining stocks are still looking quite cheap at current levels, especially if the run in gold prices continues into the summer and perhaps into year’s end. Indeed, the gold miners need a couple of quarters to catch up to the run in gold.
But if you’re in the belief that recent gains (gold surged past US$3,300) are sustainable, some of the top gold mining stocks, I believe, look to be deeply undervalued. And in this piece, we’ll check out a trio of names that could be worth picking up before May rolls around.
Do be warned, though, that gold may appear like a “safe-haven” asset that can only rise in the face of growing stock and bond market volatility. However, if things in the air clear and markets have enough clarity on tariffs to move higher again, gold could be in for a bit of a correction. So, do remember that gold is more of a hedge against chaos and soaring inflation rather than an asset that only seems to move higher, even without much help from anything else.
Without further ado, let’s check out a shining trio of names that look ripe for buying.
Barrick Gold
First, we’ll look at Barrick Gold (TSX:ABX), a Canadian gold miner that’s really picked up momentum so far this year, now up around 20% year to date. I think the run still has room to the upside, especially when you consider it hasn’t surged as much as some of its peers.
The stock also looks incredibly cheap at 16.3 times trailing price to earnings (P/E) with a 2.03% dividend yield. With the firm selling off its Alaska Gold project stake for more than $1 billion, Barrick is shoring up quite a bit of cash that it can use to develop other projects while using a portion of the proceeds to “support” returns to shareholders. For investors, that means another dividend hike may not be too far off.
Personally, I view the 2% yield as a top reason to prefer ABX shares over gold bullion itself.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) stock also looks like an intriguing buy this year, with shares up close to 42% year to date, more than double that of Barrick’s 2025 gain. Undoubtedly, the $84.3 billion gold miner has seemingly done everything right. And while shares are quite a bit pricier than Barrick at 31.9 times trailing P/E, a strong argument can be made that Agnico deserves every bit of its relative premium. It’s a very well-run miner that’s operating at a very high level.
That said, the valuation is seen as limiting upside, at least to some analysts like those at UBS, who view shares as “stretched” after outpacing many rivals on the scene. With a smaller 1.35% dividend yield, I see AEM as somewhat less appealing than ABX, especially at such a pivotal moment for gold.
