08. Eldorado Gold Corporation (NYSE:EGO)
Upside Potential: 43%
Forward P/E Ratio: 8.12
Year To Date Share Price Gain: 15%
Eldorado Gold Corporation (NYSE:EGO) stands out as one of the top gold stocks to consider right now, with its strong fundamentals and promising growth potential. As of December 20, the stock trades at a forward P/E ratio of 8.12, significantly undervalued compared to its peers. Analysts forecast an upside potential of 43%, with a target price of $21.39 compared to the current share price of $14.97. The stock has already gained 15% year-to-date, making it an attractive pick for investors looking to capitalize on the gold sector's growth.
Eldorado operates a diverse portfolio of gold mines and projects across Turkey, Canada, Greece, and Romania, producing not only gold but also silver, lead, and zinc. The company achieved a solid Q3 2024 performance, producing 125,195 ounces of gold, aligning with its full-year guidance. Year-to-date, production has increased 7% compared to 2023, underscoring the company's operational efficiency and growth trajectory.
Financially, Eldorado reported net earnings of $101 million, or $0.49 per share, for the third quarter, driven by higher gold prices and increased sales volumes. Adjusted net earnings stood at $71 million, or $0.35 per share, reflecting the company’s strong core operations. Revenue grew by $87 million year-over-year, supported by robust production and favorable market conditions.
The company's cost structure remains competitive, with total cash costs of $953 per ounce and all-in sustaining costs (AISC) of $1,335 per ounce. While these figures have risen slightly due to higher royalties and labor expenses, Eldorado's focus on operational efficiency and strategic investments positions it well for long-term profitability. Notably, the company is advancing its Skouries project, which is expected to begin production in Q3 2025, further enhancing its growth outlook.
Eldorado's commitment to disciplined capital allocation and operational excellence, combined with its undervaluation and significant upside potential, makes it a compelling choice for investors seeking exposure to gold stocks with a strong foundation and promising future.