Road to Recovery: Stock Hotlist for The Week of May 18th, 2020

We may have to contend with another trade war with China.  

The U.S. just blocked shipments of semiconductors to Huawei Technologies from global chipmakers.  The Department  says the “announcement cuts off Huawei’s efforts to undermine U.S. export controls.”  

In return, China’s Global Times Editor in Chief tweeted that, “Based on what I know, if the US blocks key technology supply to Huawei, China will activate the ‘unreliable entity list,’ restrict or investigate US companies such as Qualcomm, Cisco and Apple, and suspend the purchase of Boeing airplanes.  In short, things could get ugly again.

As tensions rise over a potential new war, some of the best opportunities can be found in the safe havens of gold stocks.  In fact, here are some of the top ones to consider.

Opportunity No. 1 – Newmont Corporation (NEM)

With heightened tensions, one of the biggest winners in the gold sector has been Newmont Corporation.  Even after exploding from a low of $40 to $66, there’s further upside with the new trade war flare-up.  NEM earnings have been just as explosive, with its quarterly profit spiking 641% year over year thanks to higher production and booming gold prices.

Opportunity No. 2 – Barrick Gold Corp. (GOLD)

Barrick Gold is also running to higher highs on global tensions.  Even after soaring from a low of $13 to $27, we believe there’s further upside remaining in the stock.  Until there are signs of economic certainty, cooler heads in China and the U.S., and an end to the coronavirus threat, gold stocks like GOLD should continue to push higher.  

Opportunity No. 3 – SSR Mining Inc. (SSRM)

SSRM is another one to consider.  Even after running from a low of $9 to $18.74, the stock could see higher highs on new tensions with China, and the coronavirus threat to the global economy.  Near-term, the stock could easily run to $25, in our opinion.