3 Shutdown Stocks With Glittering Potential

At writing, the government shutdown is currently underway. And, almost like clockwork, lack of faith in the current United States government leads many to look at gold as a safety net, rightly or wrongly. This, of course, led to rising share prices for a fair number of gold stocks.

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Yet, in all likelihood, the shutdown will not last, and the attention on gold will wane. The stocks that glitter but lack depth will leave some investors feeling as though they have invested in fool’s gold.

However, using our Zen Ratings system, you can find gold and gold-related stocks that have our highest rating of A and are likely to perform well beyond current events. Here are three such stocks:

1. Kinross Gold Corp (NYSE: KGC)

KGC is a Zen Investor portfolio pick that has gained over 160% since being added to the portfolio. The company with international gold mining operations and headquartered in Toronto has been making the rounds as a top gold stock, and for good reason. The success it has had in utilizing increasing gold prices to its advantage has been notable. 

However, there is still room for it according to our Zen Ratings system. It receives a Component Grade of A for both Momentum and Financials, and still strong grades of B for Value and Sentiment. These all indicate that the stock shows signs of future potential (alongside stability) and that investors are still looking positively towards KGC.

2. Caledonia Mining Corp (NYSEMKT: CMCL)

Another gold mining company with extremely strong winds behind it, CMCL is nonetheless potentially undervalued as considered by our Component Grades (see below). With a 5.22% forward dividend yield and exceptional results in the recent second quarter, investors are carefully watching where CMCL might go next.

We even covered it a few months ago as a small-cap stock worth watching, perhaps only slightly changing because the cap isn’t as small as it used to be.

3. Gold Fields Ltd (NYSE: GFI)

With a year that echoes the other two selections above, GFI has strong momentum behind it, dating well beyond the recent shutdown and the news leading up to it. The global gold producer is outpacing most of its peers, and there is still potential within it for anyone looking to add more gold stocks to their portfolio.

That all being said, GFI might not be the safest prospect of the bunch. GFI has a Component Grade of D for both Safety and AI (in which our algorithms look for patterns in the market data to predict future price trends). If you want a more conservative portfolio, CMCL or KGC are the ones to look at first.

Want to learn more about any of the gold stocks above or others? Then WallStreetZen Premium is what you’re looking for. With it, you’ll have an unlimited watchlist, all the fundamental information you need, and more. Consider it a way to save time and more easily keep on top of your portfolio.

Do you also want a more guided approach, or don’t have enough time to review every stock? Then Zen Investor is for you. With it, you’ll receive regular updates on the market and hand-picked portfolio selections from our own Steve Reitmeister. Additionally, know that KGC was actually picked out for our Zen Investor portfolio, and those who would have followed the advice at the time would have a return of 162.17%!

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