Author: mo-admin

Top New Year Resolution Trades to Consider

We’re again nearing the holiday season.

And that means that it’s time to start looking at some of the top New Year Resolution ideas, as we do every year.  In the next few weeks, there’s Halloween, when we eat more of the candy we hand out at the door.  Then, there’s Thanksgiving, where we eat until we pass out from too much tryptophan. And then there’s the December holidays, and New Year’s Eve and Day.

Around this time of year, about 90% of us, according to Johns Hopkins Medicine, make a resolution to lose weight, diet, and exercise more. All as millions of us begin to worry about our expanding waistlines, and promise ourselves next year will be different. 

Many of us will join Weight Watchers, or WW, or even Medifast.  Or, they’ll look to join a gym.

Look at Planet Fitness (PLNT) for example.  

For the last several years, the stock tends to take off around the holidays.  It’s even starting to do so again now after plummeting. We saw it take off in late 2020, in late 2021, and again in late 2022.  Now, we’re seeing it happen again

We may even see similar moves in oversold stocks like Medifast, which currently sits at double bottom support. Even Weight Watchers is starting to push aggressively higher. In fact, after bottoming out around $7.45, it could push higher again.

These are just a few of the stocks you may want to look into as we near New Year 2024.

Capital Group: Pull Back Presents Unique Equities Investment Opportunity

There is an opportunity for investors to load on equities after three months of pullback from this year’s highs. Those are sentiments echoed by strategists at Capital Group in the aftermath of the US Federal Reserve pausing on interest rates for the second consecutive time. According to Andy Budden as the $2.3 trillion manager, the time might be ripe to scan for opportunities in the equity market as central banks peak on monetary policy tightening.

Equity Bounce Back

The sentiments come against the backdrop of the tech-heavy index NASDAQ pulling back by about 7% from its all-time highs over the past three months. The S&P 500 is also down by about 9% from its peak in what is being interpreted as a small correction after a blockbuster rally in the first half of the year. In recent weeks, optimism has been streaming into the market as investors look for bargains following the correction.

Renewed confidence in equities comes from the Fed keeping interest rates in the range of 5.25% and 5.5% at its latest meeting. It also comes on the central bank’s indication that economic activity expanded at a strong pace in the third quarter, averting growing concerns about a potential slowdown amid the high-interest rate environment. Reports that the economy is growing at a solid pace should continue to fuel demand for risk in the market, of which equities are likely to be one of the beneficiaries after the recent correction.

A recent yield spike heightens the prospects of the Fed going slow on rate hikes at its December meeting. That’s because tighter financial conditions have succeeded in partially achieving the FedS goals, with inflation levels having dropped significantly. Stocks and bonds are likely to continue edging higher on growing expectations that the Fed is nearing the end of its historic tightening campaign.

improving Equities Outlook

Strategists at Capital Group believe now could be the best time for investors to start acting, given the divergence between asset classes and cash, fixed income and equities after interest rates peaked. If history is anything to go by, global equities will likely return more than 12% on average on dollar terms over the next 12 months if the Fed hike cycle has peaked.

With record $5.6 trillion cash on the side-lines, the equity market could be in for another leg higher as investors note the depressed valuations in various counters after the deep pullback. Faster-growing dividend-paying companies could be the biggest beneficiaries of the expected investment spree as they have been duly punished amid the Fed hike cycle.

Even as strategists at Capital Group remain bullish about the market outlook after the recent bounce back, analysts at Morgan Stanley are sceptical. Michael Wilson has warned against investing in US equities given the narrow market breadth and fading consumer and business confidence. Named one of the best portfolio strategists by an institutional investor survey, Wilson maintains that the prospects of a fourth-quarter rally have dropped significantly.

Wilson’s bearish sentiments are being fuelled by the expected negative impact of higher for longer interest rates. Falling earnings revision has only fueled scepticism about the overall market outlook.

BP Downgrade After Earnings Miss and Management Shock

Oil majors have been the center of attention in the aftermath of oil prices powering and finding support above the $ 80-a-barrel level. Investors have fallen in love with them in anticipation of bumper returns and rewards on dividends and buybacks. Consequently, most investors have continued to ramp up positions, pushing the stocks up the charts to the extent of outperforming the market. However, not any more.

BP Downgrade

Analysts at JPMorgan are the latest to sound warning bells signaling that upward momentum in the oil market may be fading. The analysts have downgraded BP to underweight, equivalent to a sell rating. The rating distinguishes the oil major from Chevron, Exxon Mobil, Shell and TotalEnergies, which continue to enjoy positive ratings.

The negative rating on BP comes on the heels of TotalEnergies being upgraded by analysts at Mediobanca SpA. It also comes against the backdrop of the company delivering a significant miss on third-quarter profit. The company had a $3.3 billion in Q3 profit, down 59% from the $8.15 billion paid a year ago. The drop came as revenues and other incomes fell by 6.5% to $54 billion.

The earnings miss has seen BP stock come under pressure, dropping by about 7% since it delivered its Q3 report. Amid the recent drop, the stock is still up by about 5% for the year, supported by the high oil prices. Nevertheless, the oil major remains under pressure amid the falling crude oil prices.

Prices have dropped below the $ 90-a-barrel level and are at risk of falling below the $ 80-a-barrel level. The drop comes on growing concerns about demand in the aftermath of China’s critical oil import reporting disappointing economic data that signals the economy might be slowing down.

Declining oil prices are not the only headwind taking a toll on BP sentiments in the market. Management shocks in the aftermath of Chief Executive Officer Bernard Looney resigning over failure to disclose past relationships with colleagues also take a toll on its sentiments. The shakeup could not have come at a worse time as BP is trying to persuade investors about its long-term prospects as it transitions to a low-carbon energy entity.

Better Oil Plays

BP faces the risk of lagging as its peers led by Exxon Mobil and Chevron has insisted on sticking closely to their core oil and gas business amid the low carbon push. Consequently, they have been more appealing to investors, especially when oil prices find support above the $80 a barrel level.

Oil and gas majors refocused on their core business have been winning back investors instead of companies embracing the net-zero targets. The Russia-Ukraine war, which triggered a big deficit in the market, triggered a massive opportunity that the companies are increasingly taking advantage of as oil prices stabilize above the $80 a barrel level.

Companies like Sell TotalEnergies and Eni SpA have emerged as big winners in signing big supply deals that would put them at the heart of Europe’s energy ecosystem; for investors looking to bet on the oil and gas industry, Exxon Mobil and Chevron have emerged as solid plays.

Is Bitcoin Rally on Low Liquidity Sustainable?

Bitcoin has roared back to life, going by the 25% plus rally in October. The rally came after a long period of consolidation that saw the flagship cryptocurrency struggle to power through the critical $30,000 a coin level. Amid the recent blockbuster move, there are growing concerns about whether the rally is sustainable.

Bitcoin Liquidity Debacle

Unlike when Bitcoin exploded, supported by high liquidity, that appears not to be the case this time. The recent swings of more than 10% have come at the back of scarcity in liquidity, which is a point of concern if the crypto is to have any chance of powering to the $40,000 a coin level, let alone its all-time highs of $68,000.

Market depth is at its all-time lows, and institutional investors who had turned to crypto in the yesteryear have shunned it. In the spot market, the trading volumes across centralized and decentralized exchanges are at multi-year lows.

On the other hand, the total market capitalization for stablecoins has also been on the downtrend, shrinking significantly over the past few months. The decline should be a concern given that stablecoins market capitalization is often used to measure the health of liquidity in the crypto market.

Shrinking liquidity in the cryptocurrency sector could be attributed to institutional investors finding better investment options. The high-interest rate environment triggered by the US Federal Reserve’s aggressive interest rate hikes has made yields more attractive. Consequently, many investors pack their funds in assets that benefit from high-interest-rate environments like bonds and treasuries.

Bitcoin rallied to record highs of $68,000 a coin as it attracted strong bids from Tesla and Grayscale Investment holdings. In recent years, institutional investors have remained cautious about taking a position in the cryptocurrency.

The drop in liquidity came against the backdrop of the collapse of the FTX exchange, which rattled investor sentiments about cryptocurrencies. With the collapse, many investors started questioning the viability of the entire crypto asset class, going by the massive losses that came into being following the meltdown at FTX.

Bitcoin ETF

On the other hand, resurgence in Bitcoin trading activity in recent weeks has come on expectations of a Bitcoin exchange-traded fund. A Bitcoin exchange-traded fund could be the missing link in drawing more institutional investors into the fledgling flagship cryptocurrency. Such a product would only affirm its credibility in the mainstream sector.

Mid-last month, Bitcoin rallied by more than 16% daily as reports hit the wires, signaling that the US was on course to approve the much-awaited ETF. The crypto gave back most of the gains as BlackRock, one of the largest asset managers in the world, indicated its application for a Bitcoin ETF with the US Securities and Exchange Commission was yet to gain approval.

Nevertheless, Bitcoin regained its footing in the market, rallying to highs of $35,000 a coin after a ticker for a proposed BlackRock ETF fund was revealed. Since Bitcoin has exploded on the expectation of an ETF, the crypto could come down tumbling if no such product materializes in the coming weeks.

The Bank of America Playing This Market by Buying Boomer and Selling Millennial 

High-interest rates are helping keep baby boomer savings accounts flush. Young Americans, on the other hand, are struggling with debt and sky-high mortgage rates and rents, which is pushing them even further away from home ownership. 

This is now driving new trade recommendations and suggestions from Bank of America, one in specific directed at taking advantage of the growing generational wealth gap and going long-term on old-folk shares. The narrative is to avoid those people whose wealth rides on the cash-strapped millennial. 

This means cruise ship lines and American Express Co. are in and millennial outfits like the self-styled next-gen fashion retailer, Revolve Group Inc. is out. Ohsung Kwon, BofA quantitative strategist, a millennial himself said, “Millennials are really feeling the impact of the hiking cycle. Boomers, not so much. We’re starting to see a big diversion between the two.”

The fault line is slowly bubbling underneath an economy that on the surface has somehow stayed surprisingly robust, largely because of a steady consumer-spending spree since the end of pandemic-mandated lockdowns. 

Who wins, who loses?

It’s likely there will be plenty of winners in sectors like entertainment and healthcare, where older folk tend to spend a lot of their funds, according to BofA. Home-improvement-based stock could also win big, as baby boomers are living way longer than prior generations and are starting to get reluctant to let go of houses with low mortgage rates. 

On the flip side, however, retailers that sell clothes, a sector heavily skewed toward young people, are facing heavy headwinds. 

The trend doesn’t look to slow down anytime soon with the US Federal Reserve intending to keep interest rates high for some time and the federal deficit that keeps surging putting pressure on bond yields. In turn, this ends up driving up what the US government will have to pay on Treasuries interest – which flows right back into investor pockets. 

Blanke Schein Wealth Management’s chief investment officer, Robert Schein, said, “Pre-pandemic, the empirical evidence was there supporting that boomers are doing better than millennials in regards to investments, retirement accounts, and home ownership. And post-pandemic, that divide, because of higher inflation and elevated interest rates, has gotten dramatically worse. The divide is just gigantic.”

For now, Bank of America argues that baby boomer asset ownership and spending is more than enough to keep market consumption going. BofA has a positive outlook when it comes to consumer spending and stocks in the United States.

Nvidia and Google Bet on AI Startup CentML in $27M Funding

Artificial intelligence investments are not showing any signs of slowing down. Microsoft investing close to $13 billion in ChatGPT parent OpenAI opened the floodgates as companies and venture capitalists eye a piece of the burgeoning segment. CentML is the latest AI to be at the center of a massive tussle between tech giants looking to strengthen their exposure around revolutionary technology.

CentML $27M Funding

The Toronto-based Software Company, builds software that helps machine learning systems work more efficiently, has attracted a $27 million investment. Nvidia and Google are the big names participating in the latest funding round through their venture funds. Gradient Ventures, Radical Ventures, Deloitte Ventures and Thomson Reuters are the other high-profile names participating in the financing round.

CentML has come to prominence amid the growing demand and shortage of graphics processing units needed to power artificial intelligence solutions and innovations. With supply expected to remain tight well into 2024, prices of the much-needed chips are expected to skyrocket. On the other hand, CentML is offering a way of maximizing the potential of current GPUs by providing software that allows machine learning systems to work more efficiently.

A brainchild of Gennady Pekhimenko, a PhD in machine learning from Carnegie Mellon University, CentML has built software that helps predict the time it takes to process tasks using different hardware. The software can monitor various systems and pinpoint underutilized areas while analyzing cost power consumption and cost. In return, it can distribute tasks to try and speed them up.

How the software helps in task allocation helps maximize chip use and shave cost. While the average utilization for GPUs in use stands at around 30%, CentML software stands to be of great use in distributing tasks and speeding them up. The fact that the system can speed up systems by as much as eight times should significantly impact AI adoption.

Soaring AI Investments

Amid the ever-growing demand for GPUs capable of enabling and powering artificial intelligence innovations and solutions, CentML stands to be a big player in the burgeoning industry. Likewise, the Canadian company intends to set up an office in Silicon Valley as it seeks to attract talent. There are plans to double the workforce size from about 30 over the next 12 months in the race to accelerate innovations.

CentML joins a growing list of AI startups that have attracted millions of investments from tech giants. Amazon has already invested $4 billion in Anthropic as the company seeks to capitalize on the opportunities the technology will likely fuel. Amazon and Anthropic are joining forces to develop the so-called foundation models that underpin generative AI systems.

As artificial intelligence emerges as a transformative force revolutionizing industries and reshaping how people live and work, investments will continue flooding into the sector. While AI startups attracted a record-breaking $40 billion in funding last year, the figure has more than doubled in 2023 as companies come to terms with the technology’s immense potential.

OpenAI Plans Share Sale for $86B Valuation

OpenAI is not leaving anything to chance as it seeks to take full advantage of the artificial intelligence boom. The parent company behind the popular Chatbot ChatGPT reportedly plans to sell existing employees’ shares at an $86 billion valuation. Reports indicate the company is negotiating with potential investors as it seeks to issue a tender offer that will affirm its status as the most valuable AI startup.

OpenAI Shares Sale

The sale of the existing shares is more than welcome as it would prevent OpenAI from issuing new shares to raise fresh capital. The issuance of new shares could significantly dilute existing holdings, which the company wants to avoid at all costs.

The sale should attract strong interest from investors who have been eying a piece of the company that remains the poster child of the artificial intelligence revolution. The company already boasts of Microsoft as its biggest shareholder, with a 49% stake. The software giant took a massive stake in the company after investing about $13 billion as it sought to gain exposure to its AI innovations.

The sale of the existing shares for $86 billion would propel OpenAI above Stripe and Chinese online retailer Shein.  In addition, it would cement the company’s status as the most valuable closely held company behind SpaceX and ByteDance, the company behind the viral video app TikTok.

An $86 billion valuation would be almost three times what the artificial intelligence startup was valued at the start of the year. However, it would not be surprising as companies exposed to the revolutionary technology have seen their valuation explode amid solid institutional investor interest. Nvidia is one of the companies that have exploded, joining the trillion-dollar club and becoming the go-to chip for powering revolutionary technology.

OpenAI is regarded as one of the companies at the forefront of generative AI, as its technology is used to create content from videos to poetry out of simple commands. The integration of its Chatbot on the Microsoft search engine, Bing, has only underscored its capabilities. The integration forced Alphabet Google to respond with its own Chatbot dubbed Bard as it sought to safeguard its search engine edge.

OpenAI Revenue Prospects

Since its unveiling in November last year, ChatGPT has been integrated into major corporations to help in various operations. The integration has already set OpenAI on course to generate over $1 billion in annual revenues as businesses continue to adopt the technology behind the Chatbot. Reports indicate ChatGPT is earning over $80 million in revenue monthly for OpenAI, making it one of the most-prized possessions in the burgeoning segment.

While OpenAI allegedly lost close to $540 million in 2022 in developing ChatGPt, it is on course to recoup the losses and generate significant returns, given the increased adoption. ChatGPT edge stems from creating features and privacy safeguards that have made it an ideal tool for use in the business environment. Many businesses are increasingly using it to boost revenue and enhance product development.

OpenAI is already accelerating plans to monetize ChatGPT in a move that could see it sell premium subscriptions and offer companies paid access to the application programming interface.

Inflection AI Warns of AI Chatbots Interfering With US Elections

Election interference has always been a hot subject, and things are about to get out of hand as artificial intelligence chatbots become powerful. A slew of chatbots rolled out can answer questions, summarize text, and perform other tasks when prompted by users. Likewise, there are growing concerns that such tools could significantly impact how people vote in the upcoming US election.

Controlling Chatbots

Concerned by the threat that AI-powered chatbots could have in the upcoming US presidential election, Inflection AI has started coordinating with other startups to limit the tools’ role. The artificial intelligence startup co-founder Mustafa Suleyman says they will not allow their chatbot Pi to advocate for any political candidate.

Likewise, Suleyman has started a campaign urging other startups to prevent their chatbots from recommending political candidates, which could amount to election interference. Part of the push entails advising AI companies to avoid political commentary on AI products. Such actions could result in chatbots refraining from giving suggestions on who to vote for.

Inflection is a startup that has raised billions of dollars amid the artificial intelligence hype. The company boasts a star-studded list of investors led by Microsoft co-founder Bill Gates, former Google Chief Executive Officer Eric Schmidt, and Nvidia Corp.

It would not be the first time that companies with chatbots have programmed them to offer answers to some queries. For instance, most chatbots decline to answer questions that might result in a crime, for instance, providing answers on how to rob a bank or kidnap someone.

Musk AI Warning

The push to restrict chatbots’ role in the upcoming elections brings to light the ever-growing concerns about how powerful AI tools could become. More than 1,000 technology leaders and researchers led by Tesla CEO Elon Musk have urged AI labs to pause developing the most advanced systems. The warning comes on growing concerns that advanced AI tools could present profound risks to society and humanity far worse than election interference.

Some AI tools in the market have already been criticized for getting details wrong. Likewise, there are growing concerns that they could be used to spread misinformation that could cause significant dangers in addition to affecting how people vote, respond, and perform other tasks. Musk has been vocal in urging for the development of safety protocols for AI systems.

According to Musk, the development of robust AI systems should only proceed once it is determined that the tools will have a positive impact and that those humans will always be in control. In addition, the risks posed by the tools should be manageable. Failure to institute controls and safety protocols could result in AI systems that assume complete control of humanity.

While Musk has been one of the most prominent investors in the revolutionary technology that could enhance self-driving features in Tesla vehicles, he has also been wary of how powerful the technology could become. He is on record calling for a competitor to Microsoft’s Partnership with Open AI and Google’s relationship with DeepMind to ensure the two tech giants don’t manipulate the technology to the disadvantage of other industry players or humanity.

US Tech Giants Add $2.4Trillion on AI Hype

If there was ever any doubt about artificial intelligence potential, then the $2.4 trillion US tech giants added to their market caps should quell any concerns. The focus is on generative AI; US tech giants have been on a roll, posting double-digit percentage gains in share price values owing to their innovations and solutions around the groundbreaking technology.

Artificial Intelligence Hype

Apple, Microsoft, Alphabet, and Amazon are some of the companies that have posted an average of 36% in share price gains as investors turned to them for exposure to generative AI. Nevertheless, Nvidia has been the biggest beneficiary, going by the 200% plus rally as the focus shifted to its graphics processing units used to enable AI innovations.

The chip giant has already joined the trillion-dollar club, having become a Wall Street darling on AI hype. Despite the stock appearing overvalued, investors have continued to add it to their portfolios in anticipation of further gains as the AI revolution is just starting. The company’s chips are in high demand as they power many advanced generative AI models that produce new content from the volume of training data.

The gains posted by US tech giants amid the generative AI hype have helped propel tech-heavy NASDAQ 100 to 80% of its all-time highs. It marks the fastest pence back to near-all-time high levels than t after the dot-com bust. Nevertheless, valuation concerns are becoming louder by the day as public multiples for most tech companies are back to 10 10-year Covid average of 6.1 times 12 months’ revenue.

Amid the valuation concerns, tech companies exposed to revolutionary technology continue to attract strong interest. The strong interest comes from the growing buzz about generative AI tools like OpenAI’s ChatGPT and Google’s Bard and their potential impact on the digital world.

AI Funding Deals

On the other hand, the US continues to lead the pack on artificial intelligence funding deals. OpenAI has been one of the most sought-after startups, attracting $10 billion in investment from Microsoft. Inflection is another company that has raised $1.3 billion as it continues to work on innovations tied to AI.

In Europe, France is in the driver’s seat on AI funding deals with three of the largest funding rounds. Hugging Face raised $235 million, followed by Poolside with $126 million, and Mistral AI having raised $113 million. Europe is becoming a hotbed of AI, with 40% of new unicorns all working on generative AI.

The billions of dollars raised by AI startups come on the heels of fundraising dropping significantly as investors remain wary. Companies no longer spend big on new projects or acquisitions as cost cuts remain a top priority. For instance, there were only ten transactions involving large-cap techy companies this year, considering there were 26 deals in 2022 and 27 in 2021.

Tech companies have prioritized cost cuts to navigate the high-interest rate environment and uncertainty over the economic outlook. Nevertheless, some tech companies have prioritized growth and expansion over short-term profits. Massive investments in AI innovations.

Top 5 Gold Stocks to Consider Right Now

There’s still plenty of upside ahead for gold.

Since 2020, gold has made two attempts to break above its peak around $2,000.  Both times, gold failed and fell apart.  However, with recession likely, a potential cooldown with interest rate hikes, a weaker dollar, and big demand, gold could soon break to new highs.

For one, central banks are buying gold like it’s 1967 all over again. “Collectively they purchased 1,136 metric tons of the metal worth more than $70 billion in 2022. It was also the biggest level of purchasing since 1967, more than half a century ago, according to data provided by industry group World Gold Council,” noted Forbes.com.

Of course, there’s also geopolitical uncertainty, too.  Should we see a black swan event with Russia, China, or the Middle East, gold prices could pop.

That being said, investors may want to buy into undervalued gold stocks such as:

Barrick Gold (GOLD)

Barrick Gold is one of the biggest companies in the gold industry.

Operating mines and projects in 18 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia, its portfolio spans the world’s most prolific gold districts in the world. 

The company, which expects to produce about 4.5 million ounces of gold per year through 2030, is also maintaining its 2.82% dividend yield.

Better, the company has an attractive asset base with about 69 million ounces in proven and probable reserves. Also, GOLD just reported preliminary production results for the full year and fourth quarter of 2022. The company’s Q4 gold production was 13% higher than the previous quarter, resulting in preliminary gold production for the full year of 4.14 million ounces.

Analysts seem to like the GOLD stock, too.  Barclays, for example, just raised its price target on the stock to $26 from $23. “While economic growth has remained better than expected, gold is a good hedge against further deterioration in the outlook, says the analyst, who continues to prefer gold over copper equities.” UBS analysts also reiterated a buy rating on the stock, with a price target of $24.

VanEck Vectors Gold Miners ETF (GDX)

Next up, the VanEck Vectors Gold Miners ETF (GDX) is attractive.

One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX).  Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost.  With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.

Even better, shares of mining stocks can often outperform the price of gold. 

That’s because higher gold prices can result in increased profit margins and free cash flow for gold miners.  In addition, top gold miners often have limited exposure to riskier mining projects.

Also, according to Capital.com:

“Gold miners have traditionally outperformed bullion in bullish markets, due to the way these companies use their operating leverage in order to increase profits, which leads to a boost in share prices. Thus, this is largely due to profit expansion, as miners are able to sell appreciating gold fairly quickly, thus avoiding a decline in prices, whereas their own operational costs rise much more slowly.”

“When gold surged between 2000-2011, the metal itself provided a rise of 550%; however, gold mining equities on the NYSE Arca Gold Miners Index jumped 690%. Since 2015, gold has seen an upswing of about 78% – far outstripped by gold mining stocks, with a surge of about 182%.”

Newmont Corporation (NEM)

Operating mines and projects in 9 countries in North and South America, Africa, and Australia, its portfolio spans the world’s top gold districts in the world. The company, which expects to produce about 8 million gold equivalent ounces per year for the next decade.

Even better, with a dividend yield of 4.17%, Newmont Corporation is another one of the industry’s largest gold companies, with 96 million ounces of gold reserves.  

It’s also too cheap to ignore. 

In fact, as noted by Goldman Sachs analyst Emily Chieng, as quoted by Barron’s, “Recent underperformance marks an attractive entry point for a low-risk gold producer delivering volume growth.” Better, Barclays analyst Matthew Murphy raised the firm’s price target on Newmont to $57 from $54, with an Equal Weight rating.  

In its recent quarter, “Newmont delivered solid third quarter production of 1.5 million gold ounces as we build momentum for strong production in the fourth quarter. Newmont remains well-positioned to respond to the challenging market environment that our industry faces today. We continue to leverage our leadership and collective experience, as well as the strength of our global portfolio with the size and scale to build a resilient and sustainable future.”

Sprott Junior Gold Miners ETF (SGDJ)

With an expense ratio of 0.35%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies whose stocks are listed on regulated exchanges.  

The ETF also carries a dividend yield of 2.1%.  

Some of its top holdings include Lundin Gold Inc., Seabridge Gold, Equinox Gold, Victoria Gold, Westgold Resources, Osisko Mining, K92 Mining Inc., Novagold Resources, Regis Resources, New Gold Inc., Sabina Gold & Silver, Argonaut Gold, Centerra Gold, Coeur Mining, Skeena Resources, and K92 Mining to name a few.

Even better, the portfolio, which holds 43 stocks, is rebalanced semi-annually, ensuring that it reacts to opportunities in time. In short, for investors looking ahead, a small-cap gold miner ETF like SGDJ could be a solid opportunity.   

Franco-Nevada (FNV)

With a dividend yield of 0.94%, Franco-Nevada operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally.

Most recently, the company hiked its dividend by 6.3% to $0.34 per share, or $1.36 annualized, for an annual yield of 0.9%. The dividend will be payable on March 30, 2023, to stockholders of record on March 16, 2023.  

Better, we have to consider that royalty and streaming firms tend to be more stable than mining companies, which is why this stock is among the best to own now. Barclays also likes Franco-Nevada, raising its price target to $115 from $111, with an Underweight rating.

Also, as the company reported late last year, “Franco-Nevada has record GEOs, revenue, net income, Adjusted Net Income and Adjusted EBITDA for the three quarters through September 30, 2022 and is on-track to meet full year guidance. The weaker gold price environment has led to an increase in demand for royalty and stream financing. We are pleased to have acquired a royalty on Argonaut’s Magino project in Ontario that is currently under construction and our business development group remains very active.”