Coeur Mining (CDE 1.72%) stock jumped 6% through 11:55 a.m. ET Friday after weak gold prices finally took a turn for the better this morning.
After tumbling over the past month and continuing to slip lower for most of the week, the price of gold finally jumped 4% in late morning trading.
Image source: Getty Images.
What's up with Coeur Mining stock going down?
The price of gold is down 13% since the day before the Iran war began, falling from $5,248 per ounce to just $4,560.80 today. Coeur Mining, which mines gold, has been hit much harder, losing a staggering 37% of its market capitalization over the same one-month period. This disparity in declines, however, is starting to attract attention from Wall Street analysts -- especially given the long-term prospects for gold price gains.
In a note yesterday, Wells Fargo forecast that gold prices that topped $5,600 in January could return to those levels -- and even rise more -- as the shiny metal resumes its historical role as a store of value and a safe haven in times of global unrest. Wells believes gold prices could close out 2026 trading between $6,100 and $6,300 an ounce -- and that depressed gold stock prices provide a "tactical" buying opportunity today.
NYSE: CDE
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What it means for Coeur Mining stock
I agree with the broad thesis -- but I'd still be cautious about Coeur. Although priced at only 18.6 times trailing earnings -- and even cheaper when valued on forward earnings -- analysts polled by S&P Global Market Intelligence seem to think Coeur is approaching the top of its earnings cycle.
Coeur earnings are forecast to nearly triple this year, but rise only 21% in 2027 -- then begin falling. Coeur may look cheap today -- but keep an eye on the long term.
