In this messy market environment we're experiencing, it's difficult to find stocks trending higher.
Many have left the United States altogether to search for gains abroad.
One group of stocks that continues to display relative strength is precious metals stocks.
What's driving this trend? Gold futures resolved a multi-decade base and made new all-time highs a year ago.
The returns have been fabulous since then, and we think they're about to accelerate to the upside.
Here's why we like Gold Miners 👇
As you can see, the VanEck Gold Miners ETF $GDX is flirting with the resolution of a textbook accumulation pattern and new multi-decade highs.
This fund holds a market-capitalization-weighted basket of gold stocks. Names like Agnico Eagles Mines $AEM, Newmont $NEM, and Franco-Nevada $FNV comprise the top 5 holdings.
It's a great way to get exposure to the mining industry.
Now, let's talk about one of our favorite stocks in this ETF, which happened to report earnings on Monday 👇
FNV had its 1st positive earnings reaction in 5-quarters:
Franco-Nevada reported a double beat, and the market loved it. The stock closed in positive territory amidst a broad sell-off on Monday.
In relative terms, the performance was fabulous. Compared to GDX and the S&P 500, it was up over 3%.
The company reported revenue of $321M for Q4 2024, representing a 6% year-over-year increase.
Excluding Cobre Panama, which has been closed due to ongoing legal and regulatory issues, revenues were up a staggering 30%.
They also completed over $1.3B in acquisitions and commitments in 2024 to drive future growth.
The management team issued much better-than-expected guidance, which helped fuel the rally. They expect a 25% increase in revenues in 2025, driven by higher gold prices and new mine ramp-ups.
