With gold prices still well within reach of the quadruple-digit mark at around $960 per ounce, and both small and large cap gold stocks doing well in recent months, investors are still searching for the best way to play bullion.
Wellington West has run a quantitative analysis screen to identify the best and worst-performing gold stocks, and has produced a long/short portfolio of potential candidates. The firm’s model has six categories: valuation, profitability/balance sheet, growth, momentum, beta and analyst revisions.
Among the long candidates, or recommended names, Aurizon Mines Ltd. (AZK) topped the list, followed by Yamana Gold Inc. (NYSE:AUY), Centerra Gold Inc. [CG/TSX] and Apollo Gold Corp (AGT-OLD). Kinross Gold Corp. (NYSE:KGC), Newmont Mining (NYSE:NEM) and Iamgold Corp. (NYSE:IAG) also made the top ten.
As for the lowest-ranked stocks, or short candidates, NovaGold Resources Inc. (NYSEMKT:NG) topped the list, followed by Crystallex International Corp. (KRY) and Metallic Ventures Gold Inc [MVG/TSX]. Gabriel Resources Ltd. [GBU/TSX] and Lake Shore Gold Corp. [LSG/TSX] also made the top ten.