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Do Analysts Think You Should Buy Goldcorp?

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Analysts’ ratings for Goldcorp

Goldcorp (GG) has operations across Canada, the United States, Mexico, Central America, and South America. You can learn more about Goldcorp in Market Realist’s An Investors’ Guide to Goldcorp.

Currently, 20 Wall Street analysts are tracking GG stock, of which 70% recommend “buys,” 25% recommend “holds,” and 5% recommend “sells.” Its current target price of $18.0 implies a potential upside of 26% based on its current market price.

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Analysts’ sentiment toward GG stock has been improving. At the end of December 2017, it had “buy” ratings from 60% of analysts compared to 70% currently. Since the start of 2018, Goldcorp’s major upgrades have come from Credit Suisse, TD Securities, and Canaccord Genuity, while there haven’t been any downgrades YTD.

Goldcorp’s outperformance

Among the major gold stocks, Goldcorp (GG) has given the highest positive returns YTD (year-to-date). As of June 14, it has returned 12.1% in contrast to Barrick Gold’s (ABX) -9.0%, Kinross Gold’s (KGC) -12.3%, and Newmont Mining’s (NEM) 4.4%. The VanEck Vectors Gold Miners ETF (GDX) has fallen -2.5% in the same period.

Goldcorp’s vision

After underperforming its peers in 2017, GG has seen a turnaround of sorts in 2018. Whereas investors were slightly disappointed with the company when it reset expectations for production and costs after a management change at the start of 2017, things have been changing lately. The company’s latest results show that it has reworked its vision to improve production, reserves, and costs by 20% by 2021. For more details, read Can Goldcorp Stock Keep Up Its Performance in 2018?

Check out Which Gold Miners Could Show Upside Potential after Q1 2018? to learn more about the strengths and weaknesses of Goldcorp and its senior gold mining peers as seen in their first-quarter earnings.

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