Stocks fared poorly across the board in the second day of trading since the U.K. voted to leave the European Union.
The Dow Jones Industrial Average shed 1.5%, the S&P 500 Index declined 1.81%, the Nasdaq Composite dipped 2.41% and the Russell 2000 finished the day 3.36% lower.
Out of the wreckage, however, emerged three stocks that managed to buck the trend. That’s why Barrick Gold Corporation (USA) (ABX), Dr. Pepper Snapple Group Inc. (DPS) and Public Storage (PSA) were three of Monday’s best stocks.
Barrick Gold Corporation (USA) (ABX)
Barrick Gold wafted up 3.03% as investors continued putting their money in gold as a safe haven amid recent Brexit volatility. ABX stock saw an immediate spike in the first hour of trading, but fell into the red by the afternoon only to regain this morning’s strength.
The stock action came after Goldman Sachs added Barrick Gold stock to its “Conviction Buy” list.
Analyst Andrew Quail increased his price target on ABX stock from $23 to $27, as “gold price fundamentals stabilize and the self-help idiosyncratic story continues to gain momentum.”
What’s more, Goldman Sachs Commodities sees any revisions to U.S. growth during Brexit-related uncertainties as bullish for gold, raising its gold price forecast for 2016 to $1,260 from $1,202. It also raised its forecast for the following two years.
Barrick reports earnings July 27.
Dr Pepper Snapple Group Inc. (DPS)
Investors blew the lid off of DPS stock for a 3.98% gain on, you guessed it, Brexit fears.
Dr. Pepper Snapple is the proud owner of some 50 consumer goods businesses in the U.S., which gives it a nice buffer from the decision to leave the EU, and DPS stock bounced right off of its 50-day moving average as the company gets ready to report earnings on July 28.
Currently, 7.8 million shares are sold short (or 4% of DPS stock’s total float). If Dr. Pepper, which has beat or met earnings for the past 11 straight quarters, reports banner earnings, we could see a short squeeze push DPS stock even higher.
Public Storage (PSA)
People were putting more than their junk in Public Storage today, as PSA stock gained 3.68%. Not much of a surprise here either, as PSA is a real estate investment trust and, as such, is shielded from the Brexit selloff.
PSA stock bounced off of its 200-day MA and is now testing its 50-day. A break through could send PSA through its $253 average price target.
Today’s gain puts PSA stock 1% into the black for the year. Public Storage reports earnings Aug. 3.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
