U.S. equities got a taste of hope Wednesday thanks to ongoing hopes of a possible U.S.-China trade deal after Chinese officials seem to be giving ground. First there were reports earlier in the week that Beijing was ready to relax import tariffs on American-made cars. Then there were reports that China may tweak its “Made in China 20205” policy to allow fairer access to foreign companies.
Adding to the tailwinds are a tame inflation report and some calming of the Brexit situation over in the United Kingdom.
As a result a number of beaten-down stocks — especially in the precious metals sector — are perking up in a big way. Here are five cheap precious metals stocks to buy.
Compania de MInas Buenaventura (BVN)
Compania de MInas Buenaventura (NYSE:BVN) shares are perking up nicely, challenging levels not seen since the middle of June capping a rise of more than 33% of off the low set in August. The company mines gold, silver and other metals in a number of countries from its base in Peru.
The company will next report results on Jan. 24 after the close. Analysts are looking for earnings of 14 cents per share on revenues of $281 million. When the company last reported on Oct. 25, a loss of 4 cents per share missed estimates by 20 cents on a 1% rise in revenues.
Endeavour Silver (EXK)
Shares of Endeavour Silver (NYSE:EXK) are pushing above their 50-day moving average for the first time since October for a rise of nearly 20% from the low set in late November. Investors were no doubt pleased to hear that a recent drill result at its Bolanito mine in Mexico found high grade silver-gold intersections.
The company reported production results back in July with silver output increasing 19% and gold production rising 5% from the year-ago period.
Kinross Gold (KGC)
Shares of Kinross Gold (NYSE:KGC) are challenging the upper end of a trading range going back to August, setting the stage for another test of resistance near its 200-day moving average — a level that was last tried back in July. Such a move would be worth a gain of 40% from here.
The company will next report results on Feb. 6 after the close. Analysts are looking for a loss of a penny per share on revenues of $759.8 million. When the company last reported on Nov. 7, a loss of 4 cents per share missed estimates by 4 cents on an 8.9% decline in revenues.
Shares of IAMGOLD (NYSE:IAG) have been beaten down pretty severely, losing 44% from the levels last seen in June to return to levels not seen since late 2016. But a nascent rebound in gold price as well as the reappearance of some weakness in the U.S. dollar is driving some new interest in shares.
The company will next report results on Feb. 5 after the close. Analysts are looking for a breakeven results on revenues of $268.1 million. When the company last reported on Nov. 6 a loss of a penny per share missed estimates by a penny on an 8.9% decline in revenues.
NovaGold Resources (NG)
NovaGold Resources (NYSEAMERICAN:NG) shares are enjoying a pattern of higher lows in recent weeks, setting up another attempt at its 200-day moving average that turned the bulls around back in October. Down 20% from its May high, watch for a return to the late summer trading range for a rise of more than 12% from here.
The company last reported results on Oct. 2 with a loss of two cents per share beating estimates by a penny. The company is based in Vancouver, BC and is exploring and developing mineral properties in Canada and the United States. It’s primary holding is a 50% interest in the Galore Creek property in southwestern Alaska.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
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