5 Gold Stocks Where Profits Are Expected to More Than Double by 2020
![5 Gold Stocks Where Profits Are Expected to More Than Double by 2020 5 Gold Stocks Where Profits Are Expected to More Than Double by 2020](http://g.foolcdn.com/editorial/images/455444/gold-bars-getty.jpg)
Don't look now, but gold is quietly putting on a show. Though the lustrous yellow metal is essentially flat over the trailing one-year period, it recently touched an 11-month high. Weakness in the U.S. dollar, which gold tends to move opposite of, as well as growing uncertainty from the Trump presidency and North Korea, have created a favorable environment for gold.
Often known as a safe-haven investment, investors fearing a correction in stocks following an eight-plus year bull market rally have certainly been nibbling of late. The recent rally in spot gold could mean good things for miners that produce the yellow metal. After all, higher spot prices should lead to higher margins, assuming expenses don't rise at a faster rate than gold.
With spot gold having bounced $250 an ounce from its lows in early 2016, mining companies are once again being tempted to expand existing mines and look into the possibility of bringing new projects into commercial production. This production expansion, coupled with higher gold prices, is the perfect recipe for strong earnings-per-share growth among gold stocks. In fact, based on Wall Street's consensus estimate, five gold stocks are poised to see their annual EPS at least double between 2016 and 2020. Here's a brief look at those five shining stars.
Source: Fool.com