After gold stocks fell sharply on Wednesday, the firm believes investors should buy one gold producer and short another instead of selecting individual miners.
"Given the uncertain and volatile outlook for the US$ and thus the gold price, we have regrouped with three conservative pair trades that we expect to be profitable in a neutral or weaker metal price environment," JP Morgan wrote.
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One of those pairs is Newmont Mining (NEM) and Barrick Gold. The firm suggests buying Newmont and selling Barrick based on "the idea that the deal where Barrick buys Newmont could be back."
Separately, TheStreet Ratings team rates BARRICK GOLD CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BARRICK GOLD CORP (ABX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."