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    Golden Opportunities: Exploring Five Unique Gold Investing Strategies

    By
    Editorial Staff
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    Gold has been a valuable and sought-after commodity for thousands of years, and it continues to hold a special place in the modern investment landscape. With its ability to act as a hedge against inflation and economic uncertainty, many investors are drawn to the shiny metal as a way to diversify their portfolios and potentially earn a profit. But with so many different ways to invest in gold, it can be hard to know where to start. In this list, we’ll explore the five most popular ways to invest in gold, from physical gold to gold royalties, and discuss the benefits and drawbacks of each. We’ll also give tips and specific stock recommendations so you can employ each of the various gold strategies now. So whether you’re a seasoned investor or just starting out, read on to broaden your knowledge and learn how to strategize to maximize results from your position in gold. 

    Physical Gold

    1. Investing in physical gold involves purchasing gold coins, bullion, or bars. This type of investment is popular because it allows investors to own a tangible asset. Physical gold is also a good option for investors concerned about inflation or economic instability. One of the drawbacks of physical gold is that it can be difficult to store and transport, and there may be additional costs associated with insuring and protecting it.
      • Bullion is typically sold by gram or ounce, and the purity, manufacturer, and weight should be stamped on the face of the bar. Purity is very important when buying gold: Investment-quality gold bars must be at least 99.5% pure gold. You can buy gold bars from dealers and individuals or online from sites like JMBullion, the American Precious Metals Exchange (APMEX), or SD Bullion. 

    VanEck Merk Gold Trust (OUNZ)

    A unique option for investing in physical gold is the VanEck Merk Gold Trust. This $700 million fund from VanEck takes physical gold to another level by allowing investors to redeem their funds and then take delivery of physical gold based on the amount they have in this ETF. The minimum shipment size is one ounce, and there are obviously fees and delays for shipping. But the option for physical delivery if and when you want it makes this fund very attractive to some.

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    Gold ETFs

    1. Gold exchange-traded funds (ETFs) invest in gold and trade on stock exchanges like a stock. This type of investment is popular because it is easy to buy and sell, and it provides investors with exposure to the price of gold without the need to own physical gold. Gold ETFs are also relatively liquid and can be easily traded throughout the day. One of the drawbacks of gold ETFs is that they are subject to management fees and other expenses.

    SPDR Gold Trust (GLD)

    By a wide margin, the largest gold ETF is the SPDR Gold Trust, the go-to way for investors looking to play the precious metal. It boasts roughly $59 billion in assets under management, roughly twice that of the next closest gold ETF, and regularly tops 10 million shares traded daily. It’s not the cheapest option out there based on annual expenses, but it is definitely the most liquid and established option. And as the fund is benchmarked to physical gold, you can get a direct play on gold bullion prices via this ETF. The fund charges 0.40% in annual expenses or $40 on $10,000 invested.

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    Gold Mining Stocks

    1. Investing in gold mining stocks involves buying stocks in companies that mine gold. This type of investment can be more volatile than other gold investments because it is subject to company-specific risks and market conditions. One of the benefits of gold mining stocks is that they may offer higher returns than other gold investments if the price of gold rises and the company performs well.

    Barrick Gold Corporation (GOLD)

    As one of the largest gold mining companies in the world, Barrick has a diverse portfolio of mines located in some of the world’s top gold-producing regions, which helps to mitigate risks associated with any particular location. With a robust portfolio of assets and a track record of successful acquisitions. The company has a strong balance sheet and is focused on delivering value to its shareholders through operational excellence and strategic growth initiatives.

    Barrick Gold Corp is up 21% over the past month and may have room to run. Analysts give the stock a Buy rating, and an average price target is $21.74, which represents a 16% upside. Considering the current market environment and the positive signals surrounding GOLD, it seems like a conservative estimate.  

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    VanEck Vectors Gold Miners ETF (GDX)

    VanEck Vectors Gold Miners ETF is a stock-focused fund. While not linked directly to gold bullion, it allows investors to get diversified exposure to some of the most prominent publicly-traded gold mining companies. It comprises about 50 miners, including Newmont Mining Corp. (NEM) and Barrick Gold Corp. (GOLD).

    Gold Futures and Options

    1. Gold futures and options are financial contracts that allow investors to speculate on the price of gold. This type of investment is popular among experienced investors and traders because it allows them to leverage their investments and potentially make larger profits. However, gold futures and options are also very risky and should only be considered by experienced investors who can afford to lose their entire investment.
      • Gold futures are traded at the COMEX division of the New York Mercantile Exchange (NYMEX). The standard contract size is 100 troy ounces, with two additional smaller contracts at 50 and 10 troy ounces. The exchange specifies the delivery of gold to New York area vaults and is subject to change by the exchange. An account approved to trade futures is required in order to trade gold futures.
    1. Gold Royalties: Gold royalties are a relatively new way to invest in gold that involves purchasing a share in a gold mine’s future output. This investment provides investors with a percentage of the gold mine’s production revenue without actually owning the physical mine. One of the benefits of gold royalties is that they can provide a stable income stream even if the price of gold declines. However, this type of investment can be more complex than other gold investments and may not be suitable for all investors.

    Sandstorm Gold Ltd (SAND)

    SAND is a gold royalty company that provides upfront financing to gold mining companies in exchange for a percentage of the future production of gold. The company’s unique business model provides investors with exposure to gold prices without the risks and costs associated with traditional mining operations.

    Recent financial results have been impressive, with strong revenue growth and improved margins. Additionally, the company’s balance sheet is solid, with a healthy cash position and no long-term debt.

    Technically, SAND is showing bullish signals on the charts, with a 19% gain over the past month. The Relative Strength Index (RSI) is also in bullish territory, indicating that the stock has momentum on its side.

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    In Summmary

    Overall, the best way to invest in gold will depend on an individual’s investment goals, risk tolerance, and investment experience. Some investors may prefer to invest in physical gold for its tangibility and security, while others may prefer to invest in gold ETFs or mining stocks for their liquidity and potential for higher returns. 

    Power Up Your Portfolio: Top Energy ETFs to Watch Now

    By
    Editorial Staff
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    Energy stocks and exchange-traded funds (ETFs) were a popular bet in 2022. Russia’s war with Ukraine, higher travel demand, and other drivers sent U.S. crude oil prices from around $75 at the start of 2022 to multiple peaks above $120 across the year. The energy sector was far and away the best performer of 2022. The Energy Select Sector SPDR Fund (XLE) delivered a massive total return of 64.2% versus a negative total return for the S&P 500 and nine of its eleven sectors. But after a year like that, many wonder where energy is headed in 2023.

    The previous year’s tailwinds will be almost impossible to replicate. Still, certain sparks – including China’s reopening, continued conflict in Ukraine, and the possibility of more surprise output cut announcements from OPEC+ – could sustain a floor under oil prices. While the odds are against energy repeating as the S&P leader this year, there is reason to believe energy still has more gas in the tank. 

    Considering the industry’s nuances, choosing one or two energy stocks to invest in can seem intimidating. An ETF is an alternative that lets you profit from energy sector tailwinds without having to pick individual stocks. In this article, we’ll take a look at three energy ETFs to consider for long-term investors who want exposure to solid companies without the risk of choosing just one or two names.  

    Energy Select Sector SPDR Fund (XLE)

    The Energy Select Sector SPDR Fund is the most significant energy ETF on the market by far. At $38 billion, XLE has roughly 5x as much in assets under management as No. 2, the Vanguard Energy ETF (VDE) ~$8 billion in assets under management.

    XLE, which will celebrate its 25th birthday next December, is pretty cut-and-dry. It’s a collection of the energy-sector stocks found within the S&P 500. In other words, you’re getting a concentrated heap of big, blue-chip, U.S.-based oil-and-gas exposure. The fund is weighted by market cap, which means the bigger the stock, the larger the stake. Currently, its positions in Exxon Mobil (XOM) and Chevron (CVX) combined account for well over 40% of XLE’s assets. So if concentration is a concern, a different strategy may be more appropriate.   The fund has a desirable 0.10% expense ratio and a 3.8% dividend yield.  

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    Invesco S&P 500 Equal Weight Energy ETF (RYE)

    If XLE’s massive allocations to Exxon and Chevron make you nervous, there’s a way to get diversified energy exposure that’s much more evened out. The Invesco S&P 500 Equal Weight Energy ETF is one of the few energy ETF options not weighted by market cap.  

    Like XLE, RYE invests in the S&P 500 Energy Index, which means a current portfolio of the same 23 stocks. However, instead of weighting them by market cap, RYE starts every stock off at the same weight each quarter. The stocks might move up or down over the next three months, but regardless of how big or small they’ve gotten, RYE will rebalance them at the same weight come the next quarter.

    Currently, Chevron is still a top-10 holding but at under 5% of assets. Marathon Petroleum (MPC) and Occidental Petroleum (OXY) – which combined are worth $108 billion, versus Chevron’s $324 billion – are the two top holdings, with current weightings of 4.5% apiece. This Invesco fund will do the trick if you want to rest easy knowing you’re not carrying any excess single-stock risk. RYE has an expense ratio of 0.4% and a dividend yield of 3.7%.  

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    iShares Global Energy ETF (IXC)

    Energy inflation isn’t a purely American phenomenon. The rest of the world has also suffered from higher oil and gas prices … and many international oil giants have profited along with their U.S. counterparts.

    The largest, most liquid fund covering a worldwide spectrum of energy equities is the iShares Global Energy ETF (IXC) – a nearly $2-billion-plus portfolio of 52 companies that dominate global energy production, refining, storage, and other industries. The fund includes both domestic and international stocks. The official breakdown is U.S. 60%/rest of the world 40%, with the U.K. (12%), Canada (11%), and France (5%) representing the top non-American country weights.

    Giants Exxon and Chevron still lead the way here, at 17% and 11%, respectively. But this fund also provides significant exposure to international energy giants, including Britain’s Shell (SHEL) at 8%,  BP (BP) at 4%, and France’s TotalEnergies (TTE) at 5%. If you’re looking to defray a little geographic risk, IXC is one of the best energy ETFs to do so while still printing a nice profit from higher global commodity prices. The fund has an expense ratio of 0.4% and an attractive 4.7% yield.  

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    Weekly Radar: Our Top Picks for The Coming Week

    By
    Editorial Staff
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    0

    The major indexes edged slightly higher Friday–but finished lower for the week– as investors weighed recession and banking sector concerns against expectations for the remainder of the earnings season. Two weeks into the earnings season, 76% of the S&P 500 companies that have reported have beaten expectations, according to FactSet. That so-called beat rate ranks slightly below the 77% five-year average.

    Market participants will likely have a better sense of whether the next leg for equity markets is higher or lower next week, based on results from some of the largest companies in the world, including big tech companies Apple, Amazon, Google parent Alphabet, Microsoft, and Meta Platforms. Investors will also be tuned in on Friday for a critical update on inflation with the Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge–for March.

    Expectations that the Fed will pause rate hikes next month are growing. This wouldn’t be a cure-all but an important step towards a more sustainable recovery. In light of this, our first recommendation for this week may be looking at a substantial move higher in the near future.  

    BTC

    After eclipsing $30,000 the previous week, the price of Bitcoin dropped to nearly $27,000 on Sunday. Despite the latest week’s roughly 10% decline, the most widely traded cryptocurrency remained well above a recent low of just under $20,000. 

    Bitcoin bulls have claimed the digital currency is a way for investors to shield themselves against government moves, such as quantitative easing and looser monetary policy, which they say erodes the value of fiat currency. Industry insiders are saying that the anticipation of a slower pace of interest rate hikes from the Federal Reserve is helping Bitcoin. Proponents also point to its finite supply as a key feature of its being a store of value.

    “This past week’s events around the failure of SVB and other banks have also shone a spotlight on the power of decentralized currencies that people can fully custody and own,” said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno. “Decentralized finance is beginning to hit home in terms of a concept to many more people now.”

    Bitcoin is up over 65% this year, beating major stock indexes and commodities.

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    While earnings results so far have proved resilient, traders are on the lookout for insight into how companies are holding up amid a period of persistent inflation and rising interest rates. Our following recommendation has surpassed analyst expectations in the past two quarters and seems well-positioned to continue this trend when it reports earnings this week.

    Warner Bros. Discovery, Inc. (WBD)

    Warner Bros. Discovery is a leading global media company, TV and movie studios. Management’s top priority in the next six months is the relaunch of a consolidated streaming service with live sports content as a central part of the company’s portfolio, including its rights to the NHL, MLB playoffs and the NBA.

    Over the last four quarters, the company has surpassed consensus EPS estimates three times. Most recently, the company blew past earnings expectations with a 1,500% surprise. Prior to that, WBD delivered a 750% earnings surprise.  

    On average, Wall Street analysts predict WBD’s share price could reach $18.72 in the next 12 months. The average price prediction forecasts a potential upside of 29% from the current WBD share price. Look out for WBD’s next earnings release, expected on April 25.  

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    Novocure Ltd. (NVCR) 

    In the last five years, NovoCure saw its revenue grow at 22% per year. That’s well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 24% per year, compound, during the period. So it seems likely that buyers have paid attention to the strong revenue growth.

    Novocure makes a novel therapy for treating cancer called Tumor Treating Fields (or TTFields). The treatment uses electrical fields to disrupt cancer cell division. TTFields has already been approved for treating glioblastoma (a type of brain cancer) and mesothelioma (cancer caused by exposure to asbestos). The company is evaluating the therapy in clinical studies targeting non-small cell lung cancer, ovarian cancer, brain metastases, and pancreatic cancer. Combined, these additional indications represent a potential market 14 times greater than Novocure’s current market opportunity making it a high-growth stock to watch.

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    Three Risky Stocks to Avoid Like the Plague

    By
    Editorial Staff
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    0

    Seeking out great stocks to buy is important, but identifying quality investments is only half the battle.  Many would say it’s just as essential for investors to know which stocks to steer clear of.  A losing stock can eat away at your precious long-term returns.  By taking a proactive approach to avoiding losing stocks, you can set yourself up for greater success in your investing journey.

    Even the best gardens need pruning and our team has spotted a few stocks that seem like prime candidates for selling or avoiding.  Read on to find out why we believe these particular stocks are poor investment choices and learn how to apply our analysis to your own portfolio management strategy…

    Fisker (FSR)

    Fisker remains committed to following through with delivery of 5,000 of its award-winning debut model, the Fisker Ocean, by September despite serious production headwinds.  A primary supplier to Fisker, Magna International, has significant supply chain problems that will increase the cost of production.  Obviously the company can’t pass those costs on to customers who’ve already reserved their vehicles.  Instead the EV maker will have to eat those costs, which will cut into crucial revenue from its first real production run.  At one point, Fisker looked like a potential leader in the EV race, now it seems like another stock to get rid of while you can. 

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    Opendoor Technologies (OPEN)

    Opendoor Technologies (OPEN) aims to revolutionize the home-buying process with its automated solution for a smoother, quicker, and more convenient buying experience.  Investors piled into OPEN during its market debut in 2020,  However, OPEN stock has lost nearly 80% of its value over the past year, with expectations building that more pain could be on the horizon due to the widespread decline in the real estate market.  Redfin anticipates that there will be a 16% year over year decline in the number of existing home sales in 2023, making OPEN an ideal stock to sell.    

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    Ascent Solar Technologies (ASTI) 

    The photovoltaic specialist obviously carries significant implications for the solar energy industry.  With society gravitating toward clean and renewable energy solutions, ASTI should be enjoying extraordinary relevance. Unfortunately, its narrative hasn’t been so fortunate. Year to date, ASTI share price is down 72%. In the trailing year, it’s down almost 96%.  Glaringly, its three-year revenue growth rate sits at 90.3% below parity.  Profit margins have slipped to ridiculously negative rates while the balance sheet is a mess.  Gurufocus.com warns that Ascent solar is a possible value trap.  

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    Avoid These Overhyped Tech Stocks In Q2

    By
    Editorial Staff
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    Tech stocks have come roaring back in 2023. But after the stunning rebound, some tech names have little room to run. In addition to industry-specific concerns, the technology sector faces headwinds from rising interest rates and a central bank that hasn’t finished its fight against inflation. As such, now seems like a good time to lock in gains on certain tech stocks that have rallied sharply this year.  

    Now more than ever, it’s crucial to be selective with your investments and avoid the tech stocks that look vulnerable. Our expert team has analyzed the market and identified specific tech stocks that should be cautiously approached. In particular, these three tech stocks look especially risky and may see severe downside in the coming days and weeks. Don’t let the recent tech sector rebound lure you into making hasty investment decisions. Instead, use our watchlist to make informed choices and avoid the tech stocks that could pose a threat to your precious long-term returns.

    SoFi Technologies (SOFI)

    SOFI has stacked on 35% in 2023, but the rebound may be fleeting. Shares have already started to fall back toward pre-earnings price levels. In the months ahead, if current economic challenges worsen if further challenges arise regarding student loans, the impact on revenue could place additional pressure on the stock.

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    Uber Technologies (UBER)

    Uber shares surged higher immediately following its Feb. 8 earnings call. The ride-share giant reported strong numbers, and management provided an upbeat outlook for the current quarter. However, the stock has already given back some of those gains amid recession concerns. UBER’s current valuation may be overly optimistic about subsequent quarterly results. Another big run may not be in store for the ticker anytime soon.

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    Bigbear.ai Holdings (BBAI) 

    In 2023, BBAI stock is up a startling 329%, with shares advancing from penny stock territory to more than $3/share today. But the current hype cycle around consumer AI products isn’t likely to move the needle for Bigbear.Ai’s business, considering that it’s far from a consumer-facing product like ChatGPT. The company has historically struggled to reach profitability from its operations, and the stock’s recent run seems dramatically overblown.

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    Weekly Radar: Our Top Picks for The Coming Week

    By
    Editorial Staff
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    0

    Stocks traded in a narrow range for the second week in a row ending the week slightly higher, as investors weighed slowing growth signals against signs that inflation pressures were receding a bit more than expected. The S&P 500 and the Dow both added around 1% to record their fourth positive week out of the past five, and the Nasdaq generated a fractional gain.

    As earnings season moves into full gear next week, some of the world’s largest companies, including Lockheed Martin, Tesla, Johnson & Johnson, American Express, and Procter & Gamble, are set to report earnings. Although the four major U.S. banks that reported first-quarter results on Friday posted earnings gains relative to the same period last year, analysts are forecasting an average decline of 6.5% in earnings for the S&P 500 companies, which would be the most significant earnings decline since the second quarter of 2020, according to FactSet.

    Despite recent market gains, the path forward in the near term may be challenging, especially as the economy weakens and potentially enters a mild recession. However, long-term investors can take heart as opportunities may arise in the coming months, particularly as markets begin to look past the slowdown towards a recovery period. Read on for our weekly stock picks and analysis to help guide your investment strategy.

    Our first recommendation is not only a solid cybersecurity play but also a logical choice for anyone looking to ride the AI wave. 

    CrowdStrike (CRWD)

    With its Falcon platform leveraging AI and machine learning to provide real-time threat detection and response, CrowdStrike is well-positioned to benefit from the growing demand for advanced cybersecurity solutions. This company’s innovative technology and strong growth potential make it a compelling investment opportunity for investors looking to capitalize on the increasing importance of cybersecurity in today’s digital landscape.

    Despite experiencing a significant drop in value in 2022, CRWD has rebounded strongly this year, with a 32% increase in its stock price. The positive sentiment from 33 out of 37 analysts who offer an optimistic view of the stock, along with the consensus Strong Buy assessment, further supports the potential of CRWD as an investment. The average price target of $165, which suggests significant upside potential of over 22%, adds to the stock’s attractiveness.

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    CRISPR Therapeutics (CRSP)

    CRISPR Therapeutics is a leading gene editing company on the brink of commercializing the first-ever CRISPR gene therapy this year. The therapy will act as a functional cure for sickle cell disease and beta-thalassemia, with a high probability of success. As such, the risk/reward scenario for the stock is attractive, considering the potential for a transformational year ahead.

    On April 3, the company announced that it had completed the rolling biologics license applications (BLAs) to the Food and Drug Administration (FDA). The BLAs seek to gain approval for the investigational treatment exagamglogene autotemcel in order to treat sickle cell disease and transfusion-dependent beta-thalassemia.

    CRSP is up 23% year to date and has an average price target of $84.19 among all 26 analysts with coverage of the stock. That implies an upside of about 67%. Shares rose this week by about 12% as a result of a more than 60,000 share purchase by Cathie Wood’s ARK Invest.

    As borrowing costs increase due to the Fed’s tight monetary policy, many investors are turning to gold as a haven asset. And with global political conflicts on the rise, there’s no doubt that gold will continue to be an attractive option for risk-averse investors.

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    Sandstorm Gold Ltd (SAND)

    SAND is a gold royalty company that provides upfront financing to gold mining companies in exchange for a percentage of the future production of gold. The company’s unique business model provides investors with exposure to gold prices without the risks and costs associated with traditional mining operations.

    Recent financial results have been impressive, with strong revenue growth and improved margins. Additionally, the company’s balance sheet is solid, with a healthy cash position and no long-term debt.

    Technically, SAND shows bullish signals on the charts, with a 19% gain over the past month. The Relative Strength Index (RSI) is also in bullish territory, indicating that the stock has momentum on its side.

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    Three Stocks to Avoid or Sell Next Week

    By
    Editorial Staff
    -
    0

    Seeking out great stocks to buy is important, but identifying quality investments is only half the battle. Many would say it’s just as essential for investors to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. By taking a proactive approach to avoiding losing stocks, you can set yourself up for greater success in your investing journey.

    Even the best gardens need pruning and our team has spotted a few stocks that seem like prime candidates for selling or avoiding. Read on to find out why we believe these particular stocks are poor investment choices and learn how to apply our analysis to your own portfolio management strategy…

    Black Hills Corporation (BKH)

    Natural gas producer Black Hills Corporation reset its growth outlook lower after reporting disappointing Q4 results, slashing its 2023 EPS view to $3.65-$3.85 from $4.00-$4.20. The revision was driven by a rapid shift in macroeconomic factors, including elevated natural gas price volatility and higher natural gas demand driven by winter storm Elliot in December 2022. With elevated natural gas price volatility, higher interest rates, and general inflationary pressures forecasted through 2024, Black Hills is only expected to grow earnings by 1% in 2023, 2% in 2024, and 4% in 2025.

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    Summit Materials (SUM)

    Summit Materials has struggled to show consistent growth since its 2015 initial public offering. Over the last eight years, the vast majority of the company’s growth has come from acquisitions, with only 2.9% of its growth coming from organic revenue expansion. Between 2015 and 2022, the company spent more than $1 billion buying other construction material companies, taking on debt to do so. This strategy has weighed on Summit Materials’ balance sheet and share price.

    Unfortunately, construction materials isn’t a great business to be in, especially with your average U.S. mortgage rate now above 6% in a cooling market. Investors would be wise to steer clear of this homebuilder stock.

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    Funko Inc. (FNKO) 

    Last month, pop culture consumer products company Funko, Inc. announced a set of leadership changes, including a C-suite management shakeup, a COO role creation, and the introduction of an execution consultant following several missteps over the last two quarters. The changeover in management could take several quarters to reset and could present challenges in building investor confidence. FNKO shares currently trade at a premium to its historical averages and near the high end of its relative valuation range versus the S&P 500. The stock’s rich valuation seems unwarranted, considering the high degree of execution risk.

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    Three Promising Biotech Stocks to Watch for High-Growth in 2023

    By
    Editorial Staff
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    0

    Biotech, defined as using technology to change, manipulate, and harness biological processes to fulfill a medical need, has vast and diverse applications ranging from genetically modifying foods to creating vaccines. Despite being a relatively new industry, biotech has rapidly evolved into one of healthcare’s most innovative and important sectors. Generally speaking, biotech stocks offer investors an excellent opportunity for significant upside success. Grand View Research reports that the global market size for the industry was $1.02 trillion in 2021, and it is expected to grow at a compound annual growth rate (CAGR) of 13.9% from 2022 to 2030, reaching $3.88 trillion by the end of the forecasted period.

    While biotech stocks saw a dip earlier this year due to market uncertainties, the sector is once again regaining popularity as investors seek out growth opportunities. With renewed optimism in the market, there’s no better time to explore the potential of investing in biotech.

    In this watchlist, we focus on highlighting three biotech stocks that, for various reasons, offer a compelling narrative for investors. Although the sector can be volatile, careful analysis of the biotech industry can help investors find promising opportunities. So, let’s take a closer look at some of the most exciting and promising biotech stocks to buy.

    CRISPR Therapeutics (CRSP)

    CRISPR Therapeutics is a leading gene editing company on the brink of commercializing the first-ever CRISPR gene therapy this year. The therapy will act as a functional cure for sickle cell disease and beta-thalassemia, with a high probability of success. As such, the risk/reward scenario for the stock is attractive, considering the potential for a transformational year ahead.

    On April 3, the company announced that it had completed the rolling biologics license applications (BLAs) to the Food and Drug Administration (FDA). The BLAs seek to gain approval for the investigational treatment exagamglogene autotemcel in order to treat sickle cell disease and transfusion-dependent beta-thalassemia.

    CRSP is up 23% year to date and has an average price target of $84.19 among all 26 analysts with coverage of the stock. That implies an upside of about 67%. Shares rose this week by about 12% as a result of a more than 60,000 share purchase by Cathie Wood’s ARK Invest.

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    Kymera Therapeutics (KYMR)

    Kymera Therapeutics is a promising example of a biotech stock worth considering, with the market showing faith in its potential. KYMR’s share price has gained over 25% since the start of the year.

    Zooming out, KYMR has lost 17% of its value over the past 12 months, but it has been forming a series of higher lows since June of last year. Moreover, the company enjoys a strong balance sheet, with a cash-to-debt ratio of 23.49 times and an equity-to-asset ratio of 0.81 times, both of which outperform the majority of its peers.

    Analysts have a consensus moderate buy rating on KYMR, with an average price target of $58, suggesting an upside potential of almost 87%.

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    Axsome Therapeutics (AXSM)

    Axsome Therapeutics has two approved drugs on the market. Sunosi, a dopamine-norepinephrine reuptake inhibitor and the only one of its kind to treat narcolepsy, and Auvelity, a fast-acting oral treatment for depression, also the first of its kind. The latter launched in October and is being evaluated to treat agitation in people with Alzheimer’s disease and to help people quit smoking. For the treatment of central nervous system disorders and two others, it plans to submit for FDA approval this year.

    Share price sank more than 10% last month following the release of disappointing fourth-quarter earnings. The company incurred an adjusted loss of $1.28 per share and generated $24.4 million in revenues. Spending was up 227% year over year. But this increase was due to higher commercial activities for Sunosi and Auvelity, including sales force onboarding and marketing spending, which should pay off in the coming quarters.

    Other potential tailwinds include Axsome’s two other drugs — AXS-07 for treating migraines and AXS-14 for fibromyalgia — that it plans to submit for FDA approval this year.

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    Three Dividend-Paying Gold Stocks to Hedge Your Portfolio Against Growing Risks

    By
    Editorial Staff
    -
    0

    These gold stocks are poised to produce passive income and profits in the face of a weakening economy.

    Gold has been making headlines lately, with the spot price reaching a 52-week high of $2021.82 per ounce on April 4th. However, the price has since fallen and is hovering around the $2000 mark as investors await the release of crucial economic data and the latest Federal Reserve meeting minutes.

    Despite the short-term volatility, experts remain optimistic about gold’s long-term prospects. In fact, many believe that gold will continue to push higher in 2023. According to Bob Carlson, a pension fund chairman and leader of the Retirement Watch investment newsletter, gold is a “crisis hedge” that can protect investors against financial crises and political conflicts.

    As borrowing costs increase due to the Fed’s tight monetary policy, many investors are turning to gold as a safe haven asset. And with global political conflicts on the rise, there’s no doubt that gold will continue to be an attractive option for risk-averse investors.

    In this watchlist, we’ll highlight the top dividend-paying gold stocks that can provide investors with both capital appreciation and steady income. So, whether you’re a seasoned investor or just getting started, keep an eye on these top dividend-paying gold stocks as you navigate the gold market in the coming months.

    Franco-Nevada Corp (FNV)

    The precious-metals-focused Franco-Nevada owns a diversified portfolio of gold, silver, and platinum, along with their related royalty streams. The company does not operate mines, develop projects or conduct exploration. Instead, Franco-Nevada’s short-term financial performance is linked to the price of commodities and the production of its portfolio of assets. Mining royalty companies have large portfolios of mining companies as clients and therefore are typically less risky than owning one or two individual mining companies.

    Franco-Nevada is a strong contender in the mining financing business. The company offers a unique way to gain exposure to precious metals and has a diversified portfolio of assets without the risks associated with owning individual mining companies. With an annual cash flow of over $500 million and a 1% dividend yield, Franco-Nevada is fundamentally strong and, according to the experts, has the potential for a 20% upside in the next 12 months.

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    Newmont Mining (NEM) 

    Newmont Mining is the world’s largest gold mining operation, with mining sites in various countries, including the United States, Australia, and Canada. The company’s acquisition of Goldcorp in 2019 has added to its portfolio of mines and assets, with over 100 million ounces of proven and probable gold reserves, in addition to producing silver, copper, and zinc, as well as running a merchant banking operation. The stock is trading at a reasonable 15 times forward earnings.

    Hinging on no uptick in the price of gold, BofA forecasts Newmont’s earnings per share will rise from $2.85 in 2022 to more than $5 in 2023. With all-in costs of $1,150 per ounce, profits will grow dramatically if gold prices move higher. Investors also can be paid for their patience in holding the stock with a 3.3% dividend yield.

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    Triple Flag Precious Metals Corp. (TFPM) 

    Like Franco-Nevada, Toronto-based Triple Flag serves as a finance partner to facilitate the development and expansion of mining projects. With a focus on cash-generating mines and fully permitted projects that can produce cash flow within two years, the company seeks prudent investments in earlier stages of the mine life cycle to maintain exposure to development-stage assets and grow free cash flow per share over the long term. 

    While risks include precious metal price volatility, competition from the royalty and streaming sector, and ramp-up issues at its mines, catalysts could include higher-than-expected gold and silver prices, future exploration discoveries, and unexpected mine expansions and acquisitions. TFPM investors enjoy a 1.3% dividend yield.  

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    Three Stocks to Watch for the Week of March 20th

    By
    Editorial Staff
    -
    0

    Pressures on the financial sectors were in the spotlight last week as headlines took markets on a wild ride resulting in returns that varied widely across all asset classes. Despite a sell-off on Friday, the Nasdaq and the S&P 500 posted solid weekly gains while the Dow fell slightly.  

    The collapse of Signature Bank and Silicon Valley Bank has injected new uncertainty into this week’s Federal Reserve meeting. Policymakers are expected to announce the central bank’s next move on interest rates on Wednesday. Following the banking industry turmoil, expectations for another rate hike have been thrown into doubt. However, according to fed funds futures data, most traders still project a 25 basis point increase. 

    In light of the current conditions, our first recommendation for this week comes from a sector that is typically less reactive to Fed decisions. Bargain hunters will appreciate the value proposition this stock brings to the table, and so will anyone looking to pad their portfolio with reliable passive income.  

    Bunge (BG)

    No matter what’s going on with the economy, civilizations need access to sustenance. Bunge Limited is an agribusiness and food company headquartered in Missouri, USA. In its Q4 earnings report (published in February 2022), the company announced revenue growth of over 32%. 

    Bargain hunters will appreciate the value proposition that Bunge brings to the table—currently, the market prices BG at a trailing multiple of 9.05. As a discount to earnings, Bunge ranks better than 76.36% of the competition. Further, BG trades at 8.04 times forward earnings, which sits well below the industry median of 16.97 times. The stock also provides some decent passive income with a forward yield of 2.63%, backed by a 22.1% payout ratio, indicating a highly sustainable yield.

    BG has a consensus strong buy rating and an average price target of $125, implying over 35% upside potential.

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    Taiwan Semiconductor’s (TSM)

    For market participants looking to strengthen their portfolios through diversification or create new avenues to explosive growth, stocks with global exposure can be an excellent addition. Taiwan Semiconductor’s share price has been on the rise after hitting a two-year low in October due to a sharp slowdown in global chip demand. Still down more than 35% from its January 2021 peak, anyone on the sidelines might consider now an appropriate time to strike. “Only a small number of companies can amass the capital to deliver semiconductors, which are increasingly central to people’s lives,” said Tom Russo, a partner at Gardner, Russo & Quinn.

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    General Motors (GM)

    Fundamentally, GM is firing on all cylinders. Most notably, the company made substantial investments in the electric vehicle space. Further, by electrifying marquee models such as the Hummer, GM can feed nostalgia with current-generation technologies. The automaker represents an attractive proposition for bargain hunters. Right now, the market prices GM at a forward multiple of 6.39. As a discount to earnings, General Motors ranks better than 84.18% of its competition. Wall Street analysts peg GM as a consensus moderate buy with an average price target of $45.50, implying 38% upside potential.

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