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5 Gold Stocks to Buy Right Now for Q2

Amid the chaos, the only trades working well are short-side bets and long-volatility plays

By Anthony Mirhaydari, InvestorPlace Market Strategist

http://bit.ly/2Jgjah4

U.S. equities are under serious pressure on Monday, with the S&P 500 finally breaking hard below its 200-day moving average after flirting with that critical technical support level for weeks.

The catalyst is more bad news for big-tech stocks like Amazon.com, Inc. (NASDAQ:AMZN) and Facebook, Inc. (NASDAQ:FB) as well as second-stringers like Tesla Inc. (NASDAQ:TSLA).

Lingering issues include fears over a U.S.-China trade war and the approach of Friday’s non-farm payroll report, which could confirm worries about wage-push inflation.

Amid the chaos, pretty much the only trades working well are short-side bets and long-volatility plays. But precious metals are perking up as well, with gold the top-performing asset in recent months.

And now, finally, gold mining stocks are following metal futures higher.

Here are five to buy:

Gold Stocks to Buy for Q2: AngloGold Ashanti Limited (AU)

AngloGold Ashanti Limited (NYSE:AU) shares are emerging back up and over their 200-day moving average, setting up a run at the January high that would be worth a gain of more than 20% from current levels.

The downside risk is mitigated by the long trading range near the $9-a-share level, which has baked in a lot of price support just below current levels.

The company will report updated quarterly information on May 8. On Feb. 20, the company reported second-half result with production up 7% on a year-over-year basis with earnings of 28 cents per share beating the single analyst estimate of 18 cents.

The result was driven by ongoing success in the company’s African operations.

Gold Stocks to Buy for Q2: Yamana Gold Inc. (AUY)

Yamana Gold Inc. (NYSE:AUY) shares are rising off of support near its 200-day moving average, looking ready to reverse a multi-month decline from its late January highs near $3.80.

Strong support going back to August is in place near $2.50, limiting downside risk. A return to the recent high would be worth a 33% gain from here.

The company will next report results on May 2 after the close. Analysts are looking for earnings of a penny per share on revenues of $436.4 million.

When the company last reported on Feb. 15, a loss of 20 cents per share missed estimates by 23 cents on a 1.2% decline in revenues.

Gold Stocks to Buy for Q2: Kinross Gold Corporation (USA) (KGC)

Kinross Gold Corporation (USA) (NYSE:KGC) shares recently retook their 50-day moving average thanks to a 10%+ rally off of its March lows. Watch for a run at the January high, which would be worth a near 20% gain from here.

The company will next report results on May 8 after the close. Analysts are looking for earnings of four cents per share on revenues of $817.9 million.

When it last reported on Feb. 14, earnings of a penny per share beat missed estimates by three cents on a 10.2% decline in revenues.

Gold Stocks to Buy for Q2: New Gold Inc. (NGD)

New Gold Inc. (NYSE:NGD) is pushing up to challenge its 50-day moving average from below, threatening to end a downtrend going all the way back to September. A return to the January reaction high would be worth a gain of nearly 40% from here.

The company will next report results on April 25 after the close. Analysts are looking for earnings of a penny per share on revenues of $216.4 million.

When the company last reported on Feb. 20, earnings of a penny per share matched expectations on a 37.5% rise in revenues.

Gold Stocks to Buy for Q2: IAMGOLD Corporation (IAG)

IAMGOLD Corporation (NYSE:IAG) is deep in the throes of a long trading range going back to August. But a test of the upper channel is in order, which would be worth a gain of more than 20% from current levels.

The company recently reported its first mineral resource estimates for the Monster Lake joint venture project.

The company will next report results on May 9 after the close. Analysts are looking for earnings of two cents per share on revenues of $287 million.

When the company last reported on Feb. 21, a loss of three cents per share missed estimates by five cents on a 15.3% rise in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2018/04/5-gold-stocks-to-buy-right-now-for-q2/.

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