Commodities have been soaring recently, before profit-taking triggered a pullback. Concerns about currency depreciation, geopolitical instability and persistent supply deficits are pushing investors toward real assets. Below, we highlight 5 commodity-related stocks positioned to capitalize on this rally.
Commodity prices hit all-time highs earlier this year, driven by parabolic moves in precious metals, before the recent pullback triggered by profit-taking. has surpassed $5,000 per ounce, surpassed $100, is approaching record levels above $6.00 per pound and is supported by production dynamics and tensions in the Middle East. In this environment, commodity-related stocks provide leveraged exposure to these trends.
Below, we highlight five standout picks, each positioned to capitalize on these rallies. These companies not only benefit from higher prices that boost their margins and cash flow, but also demonstrate operational strength, growth potential and resilience in the face of devaluation concerns, making them attractive buys for the remainder of the year.
1. Agnico Eagle Mines
Return since the beginning of the year: +27.1%
Market capitalization: $108.2 billion
Agnico Eagle Mines (NYSE:), a leading Canadian gold producer, is poised to thrive as gold prices hold above $5,000 an ounce, fueled by central bank buying, geopolitical risks and a weak U.S. dollar.
With low-cost operations in stable countries like Canada, Australia and Finland, Agnico’s all-in sustaining costs remain competitive, allowing it to reap outsized margins from the recovery. Trading at around 32 times earnings, the stock is undervalued relative to its leverage on gold.
Source: InvestPro
Agnico Eagle Mines leads the pack with an overall financial health rating of 3.67 (EXCELLENT), supported by “EXCELLENT” ratings for profit and growth. Analysts forecast a high-end price target of $276.00, implying a 28.3% upside from the current $215.51.
In a world where central banks are cutting rates and balance sheets remain bloated, gold remains a preferred hedge, and AEM offers one of the best combinations of scale, stability and operation…
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