Is Goldcorp’s Stock a Good Buy Now?

With shares of Goldcorp (NYSE:GG) trading at around $37.14 is GG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Goldcorp has been a disappointment lately, but at least there has been some good news. Lower cost production is anticipated, revenue growth has been excellent, Red Lake has huge upside potential, and Pueblo Viejo is expected to produce 415,000 ounces of gold over each of the first five years. There is also a lot of cash on hand, which will be used for construction, timely acquisitions, exploration, and dividend payments.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

On another note, a former high-up (and visionary) in the company might be experiencing delusions. Rob McEwen feels that gold will eventually reach $5,000 per ounce. This is what happens when you run a mining company with a focus on gold (he currently runs McEwen Mining.) You become a gold permabull. Goldman Sachs certainly disagrees with Mr. McEwen, recently stating that gold has topped. That said, Rob McEwen has an exceptional track record. Let’s take a look at some numbers and see how prepared Goldcorp is for the future.