The market giveth and the market taketh. Truer words have never been spoken with gold prices diving nearly US$100 in less than a day after the US Federal Reserve signalled higher inflation and that interest rates could rise twice by 2023.
Gold is currently trading at about US$1,783.27 per ounce, a reversal from weeks of trading above US$1,800/oz that had analysts forecasting that US$2,000/oz gold was within reach.
The Fed’s forecast sent both the US dollar and 10-year US treasury yield up, which rather predictably led to an exodus away from gold.
All this despite Fed Chair Jerome Powell noting that the risk of two rate hikes should be taken with a “big grain of salt”, as the Reserve did view the spike in inflation as transitory.
“If inflation turns out to be truly transitory, the Fed should be happy to walk the hiking signals back,” Kitco News quoted TD Securities strategists as saying.
“Unfortunately for gold bugs, underlying inflation trends will remain distorted for months — which removes the immediate impetus for buying the yellow metal.”
Others considered the drop in gold prices to be excessive with Commerzbank analyst Carsten Fritsch saying that rate hikes in two years’ time are “too far off to warrant any such slump in price”.
Winners & Losers
Here’s how ASX-listed gold & silver stocks are performing:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop
|CODE||COMPANY||1 WEEK RETURN %||1 MONTH RETURN %||6 MONTH RETURN %||1 YEAR RETURN %||PRICE||MARKET CAP|
|TRM||Truscott Mining Corp||64||64||128||193||0.041||$5,888,486.39|
|ANL||Amani Gold Ltd||33||100||100||100||0.002||$18,580,495.12|
|MDI||Middle Island Res||16||0||-56||-67||0.115||$14,078,095.53|
|AYM||Australia United Min||14||0||-11||300||0.008||$14,740,619.88|
|AVW||Avira Resources Ltd||9||-14||-14||100||0.006||$8,250,240.00|
|ALK||Alkane Resources Ltd||8||23||10||21||1.075||$631,112,128.00|
|BGL||Bellevue Gold Ltd||7||-8||-37||-13||0.825||$693,585,960.03|
|ARL||Ardea Resources Ltd||7||12||29||102||0.555||$71,495,525.92|
|SMI||Santana Minerals Ltd||5||-15||-41||-18||0.115||$13,113,753.14|
|VAN||Vango Mining Ltd||4||11||13||-33||0.07||$75,629,315.14|
|RND||Rand Mining Ltd||4||5||-17||-25||1.495||$85,029,561.70|
|AAJ||Aruma Resources Ltd||3||7||-38||8||0.065||$6,993,421.18|
|BNR||Bulletin Res Ltd||3||3||-13||-18||0.072||$12,909,101.33|
|CXU||Cauldron Energy Ltd||3||17||14||71||0.041||$18,695,979.99|
|HRN||Horizon Gold Ltd||2||5||-6||88||0.44||$46,944,487.04|
|GIB||Gibb River Diamonds||1||16||-57||83||0.073||$15,440,189.49|
|SFM||Santa Fe Minerals||1||-8||-5||48||0.089||$6,480,872.22|
|AQI||Alicanto Min Ltd||0||4||13||117||0.13||$42,622,769.93|
|RMX||Red Mount Min Ltd||0||5||-13||163||0.0105||$13,825,047.38|
|SI6||SI6 Metals Limited||0||-8||-58||267||0.011||$15,325,862.90|
|GSM||Golden State Mining||0||33||-9||-47||0.16||$13,653,479.07|
|LCY||Legacy Iron Ore||0||0||-63||650||0.015||$96,071,077.76|
|CGN||Crater Gold Min Ltd||0||-6||0||70||0.017||$20,867,429.74|
|BRV||Big River Gold Ltd||0||10||-9||72||0.4||$85,538,974.17|
|TSC||Twenty Seven Co. Ltd||0||0||-33||-20||0.004||$10,642,758.24|
|CTO||Citigold Corp Ltd||0||-8||-8||120||0.011||$30,580,000.00|
|NAE||New Age Exploration||0||-28||18||136||0.013||$19,621,600.74|
|LNY||Laneway Res Ltd||0||0||-29||11||0.005||$18,875,329.67|
|KGM||Kalnorth Gold Ltd||0||0||0||86||0.013||$11,625,120.78|
|TRY||Troy Resources Ltd||0||-36||-60||-59||0.035||$26,514,731.88|
|ALY||Alchemy Resource Ltd||0||-18||-7||-20||0.014||$9,411,408.34|
|REZ||Resourc & En Grp Ltd||0||-11||-30||100||0.032||$14,245,466.04|
|MBK||Metal Bank Ltd||0||-10||-18||18||0.009||$10,701,614.74|
|GWR||GWR Group Ltd||0||-7||-2||375||0.28||$84,780,204.04|
|NML||Navarre Minerals Ltd||0||-23||-47||-26||0.1||$64,624,215.10|
|DTM||Dart Mining NL||0||0||-18||32||0.14||$13,992,366.64|
|VRC||Volt Resources Ltd||0||-10||218||84||0.035||$83,311,483.54|
|AME||Alto Metals Limited||-1||-10||-2||20||0.089||$40,973,635.89|
|GOR||Gold Road Res Ltd||-1||3||11||-2||1.425||$1,259,659,312.34|
|BDC||Bardoc Gold Ltd||-1||-4||-4||-16||0.068||$121,468,016.32|
|SBM||St Barbara Limited||-2||-14||-29||-42||1.765||$1,263,822,463.37|
|HCH||Hot Chili Ltd||-3||3||-8||106||0.037||$114,854,272.65|
|KAI||Kairos Minerals Ltd||-3||10||-6||35||0.034||$58,676,435.09|
|LCL||Los Cerros Limited||-3||-11||68||371||0.165||$78,127,092.78|
|SLR||Silver Lake Resource||-3||-14||-13||-13||1.645||$1,467,822,899.48|
|TNR||Torian Resources Ltd||-3||-38||11||4||0.031||$26,951,001.71|
|TIN||Tnt Mines Limited||-3||-6||-49||-6||0.15||$14,463,480.00|
|HWK||Hawkstone Mng Ltd||-3||-3||190||314||0.029||$47,766,689.64|
|SVL||Silver Mines Limited||-3||4||30||192||0.28||$347,040,797.74|
|FML||Focus Minerals Ltd||-4||-5||-17||17||0.275||$50,255,855.38|
|DCN||Dacian Gold Ltd||-4||-19||-27||-40||0.27||$250,422,032.30|
|ICG||Inca Minerals Ltd||-4||4||136||551||0.125||$51,390,492.88|
|OKU||Oklo Resources Ltd||-4||-8||-44||-57||0.115||$55,443,279.32|
|BRB||Breaker Res NL||-4||-14||-17||-38||0.1625||$52,134,548.64|
|WWI||West Wits Mining Ltd||-5||1||53||740||0.084||$119,089,794.43|
|AWV||Anova Metals Ltd||-5||5||-20||-13||0.02||$28,661,884.00|
|WRM||White Rock Min Ltd||-5||22||3||23||0.555||$51,030,930.36|
|ZAG||Zuleika Gold Ltd||-5||-5||-33||17||0.035||$14,353,268.06|
|PNX||PNX Metals Limited||-6||21||21||0||0.0085||$29,217,548.09|
|BYH||Bryah Resources Ltd||-6||-7||2||37||0.067||$13,387,421.19|
|WMX||Wiluna Mining Corp||-6||-10||-38||-28||0.92||$148,781,773.08|
|EVN||Evolution Mining Ltd||-6||-9||-5||-13||4.655||$8,030,735,299.50|
|FAU||First Au Ltd||-6||-17||-12||25||0.015||$9,219,431.31|
|ZNC||Zenith Minerals Ltd||-6||-13||73||96||0.225||$67,702,806.90|
|PRX||Prodigy Gold NL||-6||-4||0||0||0.045||$24,966,987.06|
|WAF||West African Res Ltd||-6||-13||-12||5||0.9||$821,345,767.56|
|RED||Red 5 Limited||-7||-14||-33||-46||0.1725||$410,606,568.23|
|TBR||Tribune Res Ltd||-7||-7||-17||-25||4.8||$251,846,769.60|
|TBA||Tombola Gold Ltd||-7||-15||-11||32||0.041||$23,834,718.50|
|IVR||Investigator Res Ltd||-7||-1||51||441||0.092||$125,774,927.67|
|SKY||SKY Metals Ltd||-7||-21||-37||-51||0.13||$30,831,228.50|
|A1G||African Gold Ltd.||-7||11||27||164||0.26||$21,480,843.34|
|BC8||Black Cat Syndicate||-7||-10||-2||-2||0.625||$87,383,100.42|
|DEG||De Grey Mining||-7||-8||23||129||1.305||$1,693,066,349.91|
|MHC||Manhattan Corp Ltd||-8||-14||-57||-8||0.012||$18,315,344.32|
|DCX||Discovex Res Ltd||-8||-14||-14||9||0.006||$15,411,984.46|
|KRM||Kingsrose Mining Ltd||-8||0||53||53||0.055||$41,610,419.06|
|SIH||Sihayo Gold Limited||-8||-15||-45||-46||0.011||$40,540,075.54|
|TAM||Tanami Gold NL||-8||-16||-8||12||0.066||$79,906,599.13|
|SVY||Stavely Minerals Ltd||-8||-22||-44||-28||0.485||$127,871,111.48|
|AMI||Aurelia Metals Ltd||-9||-9||-13||-15||0.375||$481,548,551.25|
|OBM||Ora Banda Mining Ltd||-9||-28||-45||-41||0.155||$149,698,567.40|
|MRR||Minrex Resources Ltd||-9||-33||-5||100||0.02||$11,573,878.16|
|OAU||Ora Gold Limited||-9||-20||-5||43||0.02||$16,841,904.44|
|MSR||Manas Res Ltd||-9||43||67||100||0.01||$33,156,235.98|
|EMR||Emerald Res NL||-9||-5||36||95||0.935||$489,627,346.65|
|NMR||Native Mineral Res||-9||-13||-42||0.27||$7,491,510.00|
|BBX||BBX Minerals Ltd||-9||-8||-13||118||0.24||$107,159,535.46|
|HMX||Hammer Metals Ltd||-10||-3||171||171||0.095||$76,631,989.31|
|RDN||Raiden Resources Ltd||-10||8||-3||460||0.028||$33,944,489.07|
|MRZ||Mont Royal Resources||-10||-21||-10||59||0.27||$10,226,713.05|
|PAK||Pacific American Hld||-10||-10||-25||80||0.018||$5,734,528.20|
|DDD||3D Resources Limited||-10||13||36||118||0.0045||$17,461,674.41|
|TSO||Tesoro Resources Ltd||-10||-27||-46||99||0.135||$72,430,982.18|
|DGO||DGO Gold Limited||-10||-14||2||10||3.01||$231,688,006.20|
|MVL||Marvel Gold Limited||-10||13||-4||118||0.053||$25,940,846.96|
|SRN||Surefire Rescs NL||-11||-29||-39||325||0.017||$18,593,076.97|
|MZZ||Matador Mining Ltd||-11||11||39||79||0.465||$84,919,749.46|
|GBZ||GBM Rsources Ltd||-11||9||0||95||0.125||$54,155,772.75|
|AAU||Antilles Gold Ltd||-11||0||16||53||0.065||$16,910,035.40|
|MML||Medusa Mining Ltd||-11||2||5||25||0.825||$176,692,305.85|
|NVA||Nova Minerals Ltd||-11||2||-11||141||0.1375||$241,127,263.82|
|G88||Golden Mile Res Ltd||-11||-11||8||38||0.054||$7,981,044.70|
|ASO||Aston Minerals Ltd||-12||5||306||392||0.1625||$162,213,562.93|
|AQX||Alice Queen Ltd||-13||0||-46||-50||0.014||$17,312,213.03|
|RVR||Red River Resources||-13||-10||-23||157||0.1925||$103,554,873.40|
|WCN||White Cliff Min Ltd||-13||-13||-52||56||0.014||$7,240,749.59|
|ANX||Anax Metals Ltd||-13||-21||63||255||0.075||$26,964,159.53|
|SLZ||Sultan Resources Ltd||-13||-24||-2||73||0.225||$15,992,909.47|
|GMN||Gold Mountain Ltd||-14||-22||-22||-35||0.032||$24,567,197.57|
|PUA||Peak Minerals Ltd||-14||-5||-37||0||0.019||$11,679,350.39|
|CHN||Chalice Mining Ltd||-14||-4||95||739||7.345||$2,469,624,638.16|
|TMZ||Thomson Res Ltd||-14||-4||25||400||0.125||$60,213,076.30|
|NXM||Nexus Minerals Ltd||-14||-14||-42||52||0.073||$18,799,678.67|
|CY5||Cygnus Gold Limited||-14||-14||-33||54||0.12||$14,094,612.74|
|GMR||Golden Rim Resources||-14||-10||-10||29||0.009||$24,033,147.11|
|VMC||Venus Metals Cor Ltd||-15||3||-17||-22||0.175||$29,460,343.19|
|PDI||Predictive Disc Ltd||-15||-6||55||9||0.085||$110,358,782.69|
|BAT||Battery Minerals Ltd||-15||-6||-15||183||0.017||$34,701,650.20|
|ADN||Andromeda Metals Ltd||-15||16||-12||323||0.22||$486,163,761.08|
|CLA||Celsius Resource Ltd||-16||-30||-30||167||0.032||$32,464,070.51|
|VKA||Viking Mines Ltd||-16||-16||-16||329||0.026||$26,552,719.21|
|THR||Thor Mining PLC||-17||-13||9||169||0.0175||$10,673,455.96|
|AL8||Alderan Resource Ltd||-17||-27||-51||-69||0.049||$14,897,054.60|
|CEL||Challenger Exp Ltd||-20||-25||5||-4||0.225||$166,383,471.66|
|XTC||Xantippe Res Ltd||-20||0||-20||-20||0.002||$8,149,128.80|
|PNM||Pacific Nickel Mines||-27||-29||-31||20||0.036||$7,736,221.30|
SMALL CAP STANDOUTS
Truscott was up on no news with the company telling the ASX that it was unaware of any reason for the increase in its share price or the volume of stocks traded.
It is not every day that one pulls out a gold intersection grading more than 200 grams per tonne (g/t), so when Mithril Resources reported a bonanza intersection of 2.1m at 235g/t gold and 2,554g/t silver within a broader 6.8m zone at 74g/t gold and 841g/t silver, punters reacted accordingly.
The result confirms bonanza grades in historical drilling at its Copalquin project in Mexico
Drilling at the equally exciting El Refugio discovery has also extended the structure to 650m long and 300m down-dip with drilling returning results such as 7.6m at 2.34g/t gold and 143.6g/t silver from 253.25m.
The grant of two new tenements that contain large-scale intrusive granites and diorites that have the potential to host intrusive-related gold mineralisation increased the size of North Stawell’s granted exploration tenure in Victoria up from 552.9sqkm to 601.9sqkm.
West Barrabool contains coincident magnetic and gravity anomalies situated around a diorite that cut through into the company’s neighbouring EL5443 and has the potential to host Wonga-style deposits.
The other tenement, Wimmera Park Granite, hosts another significant intrusive that cuts through the southern extension of the Wildwood basalt and may host significant remobilised gold targets around the alteration rim.
Exceptional copper, lead and vanadium intersections were intersected at the first eight of 15 reverse circulation wells at Golden Deeps’ Nosib Block prospect in Namibia.
This featured a top hit of 24m grading 1.33% copper, 4.77% lead, 1.37 per cent vanadium oxide and 3.67g/t silver from just 3m including a 6m zone grading 3.67% copper, 14.9% lead, 4.4% vanadium oxide and 12.16g/t silver from 6m.
Nosib Block was a high-grade copper-vanadium mine located west of Khusib Springs and 20km along strike from the company’s Abenab high-grade vanadium project.
Grade control drilling at Bellevue’s namesake project has returned results of up to 176.6g/t gold and demonstrated the excellent continuity of the orebody.
This drilling is key to the company’s strategy of development and further resource at the project.
Step-out and infill drilling is also continuing at the Marceline and Deacon North lodes with four surface rigs and two underground rigs targeting further resource growth.
At Stockhead we tell it like it is. While Mithril Resources is a Stockhead advertiser, it did not sponsor this article.
The post Gold Digger: Feds inflation warning sends prices diving appeared first on Stockhead.
B2Gold (NYSE:BTG) (TSX:BTO) shows strong production, but Mali risks persist
B2Gold’s (NYSE:BTG) strong 2021 production numbers are overshadowed by its underperforming Gold Miners Index (GDX) by nearly 20%. The drop was partly…
B2Gold’s (NYSE:BTG) strong 2021 production numbers are overshadowed by its underperforming Gold Miners Index (GDX) by nearly 20%.
The drop was partly due to a record comparative earnings year in 2020 as well as perceived risk in Mali. If recent sanctions do not impact mining operations, B2Gold’s price could start to better reflect its solid fundamentals.
Low cost producer with strong cash position
Annual production for FY2021 was 1.04M oz. with all-in sustaining costs (AISC) between $870 and $910. AISC for FY2022 are projected to be $1,010-$1,050 due to inflationary pressures. Even so, B2G is poised to remain among the lowest cost producers in the industry.
2021 cash flow from operations is estimated at $650M. The strong cash position with virtually no debt gives the company options for exploration and M&A. $29M has been allocated to grassroots exploration for 2022, highlighting their ambition to continue to grow by drilling.
In the words of chief executive Clive Johnson, “we’ve always been very entrepreneurial, yet we’re very good at the bricks and mortar of our business…. We’ll do deals that other companies may not do.”
Perceived Mali risks but no impact on production
Over half of B2Gold’s production comes from the Fekola Mine in Mali, where regulatory and geopolitical events have been an ongoing theme.
There was a military coup in May which, while not impacting operations, created some negative investor sentiment regarding one of Africa’s biggest gold producers. The government’s revocation of an exploration permit for B2Gold’s Menankoto property also caused negative market reaction. Although a permitting agreement was reached in December, recent sanctions on the country imposed by the Economic Community of West African States (ECOWAS) raise the possibility of supply disruptions.
Nonetheless, Fekola exceeded 2021 production estimates with 567,795 oz. and CEO Clive Johnson maintains that it will withstand supply disruptions and meet 2022 targets.
Image source: b2gold.com
Part of B2Gold’s strategy is to operate and develop in jurisdictions which, while relatively underexplored, are often perceived as higher risk compared to, for instance, Canada, Nevada, or Australia. As Clive Johnson states, “a core part of our strategy is to go where others fear to tread.”
Aside from core operations in Mali, The Philippines, and Namibia, the company has exploration projects in Uzbekistan and Finland as well as a JV development in Colombia. In July 2021, they signed exploration contracts in Egypt.
In the face of perceived geopolitical risks, Johnson highlights the solid economic foundation gold miners brought to countries during COVID and anticipates B2Gold’s experience and reputation will set it apart.
B2Gold offers one of the highest dividends in the industry (4.38%). It is trading at 8.67 times earnings and has healthy current and quick ratios of 4.89 and 2.90, respectively. Price to forward earnings and price to cash flow are both below industry averages.
If perceived Mali risks begin to ease and gold continues to show a strong hand in volatile markets, B2Gold’s value could start to be better reflected in the price.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is an insider or shareholder of one or more of the companies mentioned above.
Trading Penny Stocks? Top Stock Market News For January 21st, 2022
What to know about trading penny stocks on January 21st
The post Trading Penny Stocks? Top Stock Market News For January 21st, 2022 appeared first on Penny…
Buying Penny Stocks Today? Here’s What You Need to Know
With another wild week of trading penny stocks and blue chips coming to an end, there is a lot for investors to keep track of right now. Right now, there are several factors that are impeding stock market growth including the pandemic, inflation, balance sheet announcements and much more. And because penny stocks are both reactive and speculative, it’s worth taking a closer look.
What’s Going On In The Stock Market Right Now?
During premarket on January 21st, we witnessed futures drop, signaling another potentially bearish day of trading in the market. With the NASDAQ Composite dropping by roughly 1%, it has now dropped by around 12% from its record high back in November. This clearly signifies a bearish drop and puts it well into correction territory.
On the earnings side, we saw shares of Netflix (NASDAQ: NFLX) drop by over 20% during premarket on slowed subscriber growth. Its first-quarter subscriber growth outlook was well below expectations, with only 2.5 million reported compared to an expected almost 6.3 million. Other entertainment companies such as Disney and Roku, saw share price drops as well, likely in a sympathetic movement pattern.
So, while all of this may sound disheartening, given the extraordinary times we’ve been living in, it makes sense that we would witness major market volatility like this. On top of that, we also witnessed the price of Bitcoin dip below $40,000, with crypto-related stocks falling simultaneously. So, with that in mind, let’s take a look at three penny stocks that gained during premarket.
3 Penny Stocks That Gained During Premarket
- Blue Star Foods Corp. (NASDAQ: BSFC)
- Save Foods Inc. (NASDAQ: SVFD)
- ReTo Eco-Solutions Inc. (NASDAQ: RETO)
Blue Star Foods Corp. (NASDAQ: BSFC)
The largest gainer of the day by far is BSFC stock, shooting up by over 220% by morning trading. While we did witness a similar jump with BSFC stock back in November of last year, it quickly corrected. Now, we are witnessing another major bullish move for the food company. While there is no company-specific news right now. The company did state back in December that it agreed to acquire assets from Gault Seafood. It also stated that this deal would be expected to close during the first quarter of this year.
So, while no news has come out detailing any update to this deal, it is exciting to consider. In addition, Diamond Equity Research issues an update, stating the ins and outs of this deal with Gault and the company moving forward as a whole. So, with this major move today, we do see that BSFC stock is highly speculative. But, whether it’s worth adding to your list of penny stocks or not is up to you.
Save Foods Inc. (NASDAQ: SVFD)
Another big gainer of the day is Save Foods Inc., which managed to climb by over 34% in early morning trading. With shares halted on a circuit breaker in the morning, we are seeing massive volume for SVFD stock right now.
Similarly to BSFC, there is no news that is driving SVFD stock up right now. However, many view it as a low-float play which is likely the cause behind this uptick. Keep in mind that SVFD stock is highly volatile as we’ve seen with its trading today. And with an over 50% drop in its value in the past year, it’s clear that there are many fluctuations occurring with SVFD stock right now. Whether this makes it a worthwhile addition to your penny stocks watchlist however, is up to you and your trading strategy.
ReTo Eco-Solutions Inc. (NASDAQ: RETO)
While RETO stock’s gain of around 3% in morning trading is not much compared to the other stocks on this list, RETO has climbed by almost 70% in the past five days. And, in the last month or so, that number jumps to over 160% which is no small feat. The major news with RETO came as it entered into an equity acquisition agreement to acquire an interest in Yile IoT Technology Co. Ltd. through REIT Mingde.
“We are excited about the acquisition of REIT Mingde as we believe this transaction will enable us to integrate Yile IoT’s technologies into ReTo and accelerate the upgrade and growth of ReTo’s business. With the support of IoT technologies, ReTo strives to become a technology-driven provider of services for ecological and environmental protection industries, and increase value for our shareholders.”
The CEO and Chairman of ReTo, Mr. Hengfang Li
This is great news for the company as the IoT market is continuing to heat up right now. So with that in mind, is RETO stock worth buying or not?
Which Penny Stocks Are You Watching?
If you’re looking for the best penny stocks to buy in 2022, there are hundreds of options to choose from. While it can be difficult to land on just a few for your watchlist, with the right research on hand, it can be much easier than previously imagined.
Now, trading penny stocks right now is highly volatile considering the sheer number of events that are impacting the stock market. But, with high hopes surrounding the future, many expect that it could get better in the coming weeks. With that in mind, which penny stocks are you watching?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
7 Top Picks for Growth Investors in 2022
Growth investors have certainly had a rough go to start 2022. Indeed, many of the top picks touted by growth gurus such as Cathie Wood have underperformed…
Growth investors have certainly had a rough go to start 2022. Indeed, many of the top picks touted by growth gurus such as Cathie Wood have underperformed greatly to start this year. Given various market headwinds of late, this environment isn’t necessarily unexpected.
Bond yields are rising ahead of expectations of interest rate hikes. These rising interest rates are viewed as one of the main tools the Federal Reserve will use to reduce rocketing inflation. However, this hawkish monetary policy stance is also likely to meaningfully cool the economy. Thus, those looking at top growth stocks may view now as a rather dangerous time to be taking on too much risk.
Indeed, many investors are now focused on de-risking their portfolios. Looking at growth versus value, it’s clear that value stocks are winning out right now. The extent to which this continues long term remains to be seen. However, for now, the winds appear to be shifting directions materially.
How should investors navigate this environment? Well, finding high-quality growth stocks supported by decent valuations and strong long-term growth prospects is a good place to start. Here are seven top picks for growth investors looking to rebalance their portfolios in this current environment:
- C3.ai (NYSE:AI)
- Ford (NYSE:F)
- Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)
- Upstart (NASDAQ:UPST)
- Shopify (NYSE:SHOP)
- Micron (NASDAQ:MU)
- Nio (NYSE:NIO)
Top Picks for Growth Investors: C3.ai (AI)
Source: Phonlamai Photo / Shutterstock.com
One of the top growth areas that many investors remained focused on is artificial intelligence. In this space, C3.ai is an intriguing option to consider.
Indeed, this artificial intelligence company is currently trading almost 85% below its all-time high. For investors looking for value among high-flying growth stocks that have fallen back to earth, C3.ai could certainly be categorized as a fallen angel.
This company’s been touted as the “Microsoft of AI” (NASDAQ:MSFT) by various analysts. Obviously, that’s a flattering and rather bullish take. However, that’s come about as a result of this company’s innovation across key sectors. A range of utilities companies, life sciences companies, and even the Air Force are using C3.ai’s products to harness the advantages of AI in solving big problems.
Notably, this company signed a five-year contract with the Department of Defense worth $500 million late last year, bolstering this company’s revenue growth thesis. For now, C3.ai may be an early-stage stock without an attractive valuation. However, should this company continue growing at the pace many believe is possible, AI stock could be a diamond in the rough at these levels.
Now, for more of a value name. Ford is an automaker that really needs no introduction. The maker of the ultra-popular F150 pickup truck, Ford, like its auto peers, has been transitioning in a big way into the electric vehicle space.
With the launch of the company’s Ford F-150 Lightning model, many investors and analysts are now seemingly looking at this company as more of an EV stock than a traditional auto manufacturer. Accordingly, this company’s valuation has ballooned.
However, relative to other high-growth EV stocks, Ford’s valuation is relatively attractive. The automaker is priced at less than 35x earnings, making Ford’s long-term prospects appear reasonable in light of its valuation. Considering how other EV companies such as Rivian (NASDAQ:RIVN), Lucid (NASDAQ:LCID) and Tesla (NASDAQ:TSLA) are valued, Ford certainly looks like a growth stock with some meaningful upside from these levels.
Alphabet (GOOG, GOOGL)
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As far as world-class growth stocks go, Alphabet is in a class of its own. This search giant has grown into an internet behemoth, with a range of businesses spanning a number of high-growth sectors. This company’s margins have remained sky-high, as Google’s dominance in its key markets has remained over the long term.
As far as defensiveness goes, GOOG stock is about as “safe” as mega-cap growth stocks get. This company’s valuation of 26x earnings is reasonable, considering Alphabet’s growth rate. In the company’s second fiscal quarter, Alphabet’s revenue hit an all-time high of $65 billion, representing growth of 41% from a year ago. For those who anticipate this will continue, this is a valuation that’s relatively easy to get behind.
Looking forward, the company projects full year revenue growth of 39% for 2021. The company’s $142 billion in cash and short-term securities also provides some attractive growth capital for forward-looking investors. Thus, this is a top pick for growth investors looking for stocks to own in this environment.
Top Picks for Growth Investors: Upstart (UPST)
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One stock I’ve been downright bullish on, but hasn’t performed very well of late, is Upstart. This company’s valuation is the cause of most of Upstart’s problems. A company that has been valued, historically speaking, in astronomical territory, Upstart has since come back down to earth.
Currently, UPST stock trades at a discount of approximately 70% to its peak earlier last year.
Now, this is a company that appears reasonably valued at these levels. At roughly 110x earnings, Upstart is a company many value-seeking growth investors may want to consider. Indeed, if the growth thesis for this company was intact at $400 per share, at $110 per share, this AI-focused credit scoring platform could take off.
As demand for credit wanes, my expectations are that companies offering reasonable ways for lenders to estimate the true creditworthiness of borrowers could take off. While macro headwinds are likely to continue on, my long-term view on Upstart remains very bullish.
Accordingly, this is a stock I think growth investors may want to consider at these levels.
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Another stock I’ve been bullish on this past year is Shopify. This e-commerce focused company provides an all-purpose platform that helps small and medium sized businesses set up online shops. In doing so, Shopify has been able to help thousands of businesses weather the pandemic. That’s no small feat.
Coming out of the pandemic, it’s clear that the shift toward e-commerce remains strong. Thus, I view Shopify as a company similar to Amazon (NASDAQ:AMZN) in many respects. This is the king of its domain, with strong secular catalysts propelling long-term growth. Accordingly, investors bullish on the economic transformation to online shopping ought to like how Shopify is positioned.
The company’s valuation has come down substantially from previous levels. It appears Shopify has found a way to grow into its valuation, which could only have been described as ridiculous in the past. Currently, Shopify trades at roughly 39x earnings, a very reasonable valuation for a high-growth company like this.
Shopify’s triple-digit revenue growth days may be over. However, the company’s recent 46% year-over-year revenue growth numbers appear more sustainable in the near term. Assuming this growth continues in the coming two to five years, I think Shopify could run a lot further, a lot faster, from here.
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After a massive dip in November, Micron Technology is back on track, rising 12% over the past month. The company is an industry leader in the world of computer memory and data storage. Last year, Micron’s revenue and earnings surpassed all of Wall Street’s targets and estimates.
Recently, Micron Technology released its earnings report for its fiscal first quarter. Revenue in this quarter was $7.69 billion, compared to $5.78 billion in Q1 of 2021. Earnings per share also tripled to $2.04 during the same time.
Despite this, the company’s stock price certainly looks attractive. Micron has a price-earnings ratio under 15. This is lower than the industry average. Accordingly, given the potential upside this stock has, as per analyst price targets, Micron certainly looks like a top pick for growth investors today.
Micron’s growth has been supported by strong secular trends among 5G cellular devices and electric vehicles. Unless these growth catalysts slow, which I expect they won’t, Micron’s growth trajectory looks solid from here.
Top Picks for Growth Investors: Nio (NIO)
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Finally, we have Chinese electric vehicle manufacturer Nio. This past year was one of mixed results for the EV player. A global chip shortage hurt deliveries throughout the year.
That said, Nio has generally been able to weather this storm well, posting record numbers and some solid growth. In fact, in 2021, Nio was able to produce more than 91,000 vehicles. This represented production growth of 109%, along with revenue growth of 115% on a year-over-year basis.
As a Chinese EV stock, Nio competes in the world’s largest EV market. Accordingly, as the company many consider to be the “golden child” of China, Nio is positioned to capture long-term market share. This company’s recent growth trajectory is likely repeatable in the years to come, as the Chinese EV market grows. Accordingly, I’m bullish on the geopolitical factors behind this stock more than anything else.
Right now, Nio is working on increasing its production capacity to 240,000 vehicles per year. Thus, a doubling of the company’s current production could be in the cards for next year. As more production capacity is added in the years to come, I expect Nio to be a global EV force to be reckoned with.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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