2 Sizzling Hot Stocks to Buy Right Now

Written by Karen Thomas, MSc, CFA at The Motley Fool Canada

2024 has been an interesting year so far. Despite a backdrop of higher interest rates and stubbornly high inflation, the TSX Composite Index is up 5% so far this year. Similarly, many stocks keep moving higher as they shake off macroeconomic risks and uncertainties. In this article, I’d like to discuss two hot stocks that have outperformed this year and are likely to continue to move higher.

Without further ado, here they are.

Agnico-Eagle Mines stock: +24.3% year to date

Arguably the world’s safest gold mining company, Agnico-Eagle Mines (TSX:AEM), finds itself in a favourable position these days. Years of laser focus on operational excellence and a conservative company risk profile have brought the company years of consistency, stability, and strong cash flows.

Today, the market is noticing like never before. This is because of two things. Firstly, in today’s world of increasing geopolitical turmoil and conflict, investors appreciate that Agnico is not affected by these forces. This is a function of the fact that Agnico-Eagle’s mines are all in politically safe, pro-mining jurisdictions, including places like Canada, Europe, Australia, and Mexico.

The benefits of this are innumerable. For example, Agnico’s mines operate without disruption caused by civil unrest and/or government interference. In turn, this leads to consistently stable results that are only affected by market forces and operational factors. In other words, Agnico is more of a master of its own fate versus other gold companies that have operations in unstable parts of the world.

Secondly, the gold price has rallied 8.5% so far this year. This is a function of inflation and geopolitical turmoil in the world. Gold is the safe haven for investors, after all. In fact, with persistently high inflation and continued geopolitical turmoil, the outlook for the price of gold remains bullish.

This, coupled with Agnico’s record production, has resulted in Agnico-Eagle Mines stock rallying 24.3% so far this year.

Teck: +26% year to date

Teck Resources (TSX:TECK.B) is a $34.5 billion globally diversified mining and metals company. It has operations in places such as Canada, the U.S., Chile, and Peru. Right now, the company’s operations are made up of three segments: copper, zinc, and steelmaking coal, which currently make up the biggest portion of the company’s revenue.

But this is about to change, as Teck has recently sold its coal business in two separate transactions after it was clear that shareholders did not support a spinoff of the business. The sale values the coal business at US$9 billion, which means that Teck will receive a significant cash infusion. This cash will be used for three things: debt repayment, investment to expand its copper business, and a quote “significant” return of cash to shareholders.

Once the sale of its coal business closes, Teck will emerge as a copper-focused company. The company has already been focusing its capital spend on its copper business. In fact, copper production increased 58% in Teck’s latest quarter.

Interestingly, this transformation and focus could not come at a better time. The copper market is expected to be undersupplied over the next few years, as supply disruptions and increases in demand have taken hold. As a result, copper prices have been rallying and are up 18% so far this year.

Looking ahead, with current liquidity of $7.9 billion and the $9.6 billion in cash proceeds from the coal business, Teck has the financial capability to significantly ramp up its copper operations in the next few years. This positions the company really well to benefit from the expected bullish copper market.

The post 2 Sizzling Hot Stocks to Buy Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Agnico Eagle Mines right now?

Before you buy stock in Agnico Eagle Mines, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Agnico Eagle Mines wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.

See the 10 stocks * Returns as of 3/20/24

More reading

Fool contributor Karen Thomas has a position in Agnico Eagle Mines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2024

Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

Comments are closed.

If you would like to receive our free newsletter via email, simply enter your email address below & click subscribe.

MOST ACTIVE MINING STOCKS

 Daily Gainers

 Romios Gold Resources Inc. RG.V +50.00%
 Rokmaster Resources Corp. RKR.V +50.00%
 Augur Resources Limited AUK.AX +33.33%
 Stroud Resources Ltd. SDR.V +31.25%
 Casa Minerals Inc. CASA.V +30.00%
 RJK Explorations Ltd. RJX-A.V +28.57%
 Middle Island Resources Ltd. MDI.AX +23.53%
 Tearlach Resources Ltd. TEA.V +20.00%
 CMC Metals Ltd. CMB.V +20.00%
 Rimfire Pacific Mining NL RIM.AX +17.24%