Uncertainties in the markets prompted by the recent developments would likely curb investors’ appetite for riskier assets and fuel demand for safe-haven assets like gold.
Over the last month, the Zacks Gold Mining industry has advanced 7% against the S&P 500’s decline of 2.2%.
Additionally, the industry has a trailing 12-month EV/EBITDA multiple of 7.1, lower than the S&P 500 EV/EBITDA multiple of 11.3. The industry’s lower-than-market positioning indicates room for some upside moving ahead.
In order to cash in on the solid growth potential of the industry, we have handpicked three gold stocks that will likely add sparkle to your portfolio.
Besides a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy), these companies have a positive sales forecast for 2018 and 2019. Notably, on a month-to-date basis, these picks have performed better than the broader Zacks Basic Materials sector (including the mining industries). Since the beginning of April, the sector’s growth has outperformed the 0.6% gain recorded by the benchmark index.
Let’s dig a little deeper into these three choices to get a fair idea of their individual strength.
Top 10 Clean Energy Stocks To Buy Right Now: PDL BioPharma, Inc.(PDLI)
PDL BioPharma Inc (NASDAQ:PDLI) is a curious beast. It was initially established as a vehicle to acquire the rights to, or patents on, highly marketable drugs that would ultimately drive income for its investors.
It worked too… for a while. As time marched on, however, drug developers realized they could do for themselves what PDL was doing. Ergo, PDL BioPharma has been struggling for a while now to acquire drugs and marketing rights at prices that left room for healthy dividends. That’s a big part of the reason PDLI stock has fallen from a value of more than $30 in 2006 to a price of only $3 per share now.
The bears may have overshot with their pessimism though. As of the most recent quarterly report, PDL has more cash in the bank than the market cap it presently sports. The former is a whopping $532 million, versus the latter of $462 million.
PDL BioPharma could arguably overpay for a drug and still be money ahead.
Top 10 Clean Energy Stocks To Buy Right Now: Stag Industrial, Inc.(STAG)
Stag Industrial (NYSE:STAG) is a highly respected monthly dividend stock that plays in the single-tenant industrial real estate space. That includes warehouse, distribution and light manufacturing facilities.
At the moment, the portfolio includes 356 buildings in 37 states, spread across numerous industries, including automotive, air freight, containers & packaging, food & beverages and business services, among others. The tenant list is diverse, too, and spread out – the largest tenant (the U.S. General Services Administration) makes up just 2.6% of ABR. Other tenants include XPO Logistics Inc (NYSE:XPO), Deckers Outdoor Corp (NYSE:DECK) and Solo Cup.
While Stag’s dividend increases tend not to take effect until the dividend paid out in August, it tends to announce said increase sometime in the first week of May. The company typically hikes its payout twice a year, though it did keep it to “just” one increase in 2016.
Top 10 Clean Energy Stocks To Buy Right Now: NextEra Energy, Inc.(NEE)
Few companies have done more to bolster wind power’s share of American energy production than NextEra Energy (NYSE: NEE), which has invested $23.6 billion in wind power in the last two decades. It’s the largest owner of installed wind capacity in the United States with 13,852 MW. The next closest power generator owns less than half of that total.
NextEra Energy is quietly attempting to replicate that success in solar energy, which accounted for roughly 1.5% of American electricity generation in 2017 — where wind power was about 10 years ago. In 2016 the low-carbon utility produced more power from solar than any other company on the planet. It owns about 11% of the country’s installed solar capacity, with plenty more capacity additions planned in the next several years.
The stock has easily outpaced the S&P 500 over the long run and currently rewards shareholders with a 2.8% dividend yield. If you’re looking to cash in on the rise of renewable energy in the United States, then NextEra Energy is an easy place to begin your research.
Top 10 Clean Energy Stocks To Buy Right Now: Teradyne, Inc.(TER)
Teradyne, Inc. (NYSE:TER) is a company that has been around since 1960, and as such, you may not think much of this tech player. Lately, it has mostly been a supplier of automation systems for testing semiconductors, wireless devices and storage systems.
But automation has really come into its own in the last several years, and TER has seized its moment. Its purchase of Universal Robots a few years ago catapulted Teradyne into the 21st century and made it a lead player in collaborative robotics technology.
In a nutshell, these are low-cost robots that are used in conjunction with production workers — helping with packing, assembly, gluing and polishing. You can understand how this is a fast-growing segment of the economy at large. But if you want to see what it means for Teradyne in particular, look at its robots segment, which is set to grow more than 50% in fiscal 2018 according to company guidance.
Industrial automation is undoubtedly the way of the future. And with Teradyne coming into its own lately, it is at the center of that trend. Organic growth is impressive, with double-digit revenue expansion across 2017 and an even better 25% jump in earnings-per-share.
However, the medium-term potential of robotics could be dwarfed by a big-ticket buyout from larger industrial players like Siemens AG (OTCMKTS:SIEGY) or Rockwell Automation (NYSE:ROK) that would send shares skyrocketing.
Top 10 Clean Energy Stocks To Buy Right Now: Visa Inc.(V)
In some ways, this company has the perfect business… a proverbial toll road that consumers use in good times and bad. People never really stop using their credit cards and debit cards, even if they might use them a little bit less in the midst of an economic slowdown.
Visa Inc (NYSE:V) shares themselves have reflected that same consistency, and in a big way. The average annual gain has been 28% for every year since 2009. V stock hasn’t had a losing year since 2010.
But the world of money is changing. What if you believe that technologies like blockchain are poised to supplant actual, government-issued currency?
Don’t sweat it.
Visa certainly isn’t. In fact, CFO Vasant Prabhu made a point of saying late last month he’s very excited about the advent of blockchain and the opportunities that will ensue.