As U.S. equities have tacked higher in recent weeks, pushing the Dow Jones Industrial Average back over the 18,000 level for the first time since July, precious metals stocks have been a big contributor.
Gold futures have inched back towards their early March high. Silver futures have soared to test levels not seen since last May.
As a result, gold mining stocks represented by the Market Vectors Gold Miners (GDX) have returned to levels not seen since September 2014.
I had recommended a number of the stocks in this area late last year, including Barrick Gold Corporation (USA) (ABX), which went on to gain nearly 90% for Edge subscribers when the trade was closed in March.
Now, it’s time to take another look at these stocks. Here are three to watch.
Gold and Silver Stocks to Buy: Gold Fields Limited (ADR) (GFI)
Gold Fields Limited (ADR) (GFI) shares have been consolidating just under the $4.40-a-share level since February but look ready for an upside breakout that will push the stock back to early 2015 levels. Shares have shaken off a couple of analyst downgrades from mid-March. The company reported in-line production for fiscal year 2015 back on Jan. 27.
Watch for a run at resistance from the early 2015 high near $6 — which would be worth a 50% move from here.
Gold and Silver Stocks to Buy: Goldcorp Inc. (USA) (GG)
Goldcorp Inc. (USA) (GG) shares are attacking the $18 level that was lost last May after a multimonth attempt to hold above that level. Investors have shaken off news of an accident at its Marlin mine in Guatemala.
The company will report results on April 27 after the close. Analysts are looking for earnings of four cents per share on revenues of $980 million.
Watch for a move to the early 2015 high near $24 a share — which would be worth a 36%-plus move from here.
Gold and Silver Stocks to Buy: Silver Wheaton Corp. (USA) (SLW)
Silver Wheaton Corp. (USA) (SLW) shares have broken to the upside this week, surging above resistance near $18. The company was upgraded by analysts at Raymond James on April 20, which gave the stock an “outperform” rating.
A return to the early 2015 levels near $23 a share would be worth a 20%-plus move from here. Edge subscribers enjoyed a 46% gain in the stock when they held it between Nov. 19 and Feb. 17.