Market Overview - The U.S. equity markets have experienced a steady downtrend due to escalating tensions in the Middle East, particularly following U.S. attacks on Iranian nuclear sites and Iran's retaliatory missile strikes against Israel [1] - The geopolitical tensions have raised concerns about their potential impact on the oil and gas industry, leading investors to seek safe-haven assets [1] Federal Reserve and Investment Strategies - Federal Reserve Chairman Jerome Powell indicated a cautious approach regarding rate cuts, awaiting more clarity on the effects of President Trump's tariffs on inflation [2] - In light of market uncertainties, investors are turning to momentum stocks as a strategy to achieve sustained profits, particularly when traditional value or growth investing fails [2][3] Momentum Investing - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that established trends are likely to continue [3] - This investment approach capitalizes on the human tendency to project current trends into the future before mean reversion occurs [3] Screening Parameters for Momentum Stocks - The screening process for momentum stocks involves selecting the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring steady appreciation [5] - From these, the bottom 10 performers over the past week are chosen to identify those experiencing a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) are included, as they have a history of outperformance regardless of market conditions [6] - A Momentum Style Score of B or better is also a criterion, indicating favorable timing for stock acquisition [7] - Additional parameters include a minimum stock price of $5, a market capitalization within the top 3000, and an average 20-day trading volume exceeding 100,000 [8] Featured Momentum Stocks - **Palomar Holdings, Inc. (PLMR)**: The stock has surged 99.2% over the past year but declined 3.3% in the past week, with a Momentum Score of B [9] - **Franco-Nevada Corporation (FNV)**: This gold-focused royalty and stream firm has rallied 42.1% in the past year but lost 3.5% in the past week, holding a Momentum Score of A [10] - **Paycom Software, Inc. (PAYC)**: The cloud-based HCM provider has seen a 57.5% increase in stock price over the past year, with a recent decline of 5.2% in the past week, and a Momentum Score of A [11]

Key Takeaways Gold prices have been on the rise over the past several months, which has given a boost to stocks linked to gold mining. Rising geopolitical tensions, especially the ongoing tensions in the Middle East between Iran and Israel, with the United States now having joined the conflict, have been helping gold prices. Given the current situation, investing in gold mining stocks such as Royal Gold, Inc. (RGLD) , Franco- Nevada Corporation (FNV) , Harmony Gold Mining Company Limited (HMY) and AngloGold ...

Group 1: Gold as an Investment - Gold is perceived as a safe-haven investment during economic and political uncertainty, with various ownership methods available, including bullion and mining companies [1] - Gold itself does not generate value beyond its price change, making its value solely dependent on market fluctuations [2] - Owning physical gold, such as coins, can incur storage and transaction fees, making it a less efficient investment method [3][5] Group 2: Investment Alternatives - Investing in gold mining stocks offers growth potential, as financial performance is linked to metal prices, with opportunities for new mines and acquisitions [6] - Streaming and royalty companies like Franco-Nevada present a more favorable investment option, as they provide upfront cash to miners in exchange for future metal purchases at advantageous prices [7][9] Group 3: Franco-Nevada's Business Model - Franco-Nevada has a sustainable business model, evidenced by its 18 consecutive years of annual dividend increases, although the dividend yield is relatively low at 0.9% [10] - The company diversifies its investments across gold, silver, energy, and other metals, providing broader commodity exposure compared to peers [12][13] Group 4: Investment Considerations - A $10,000 investment in Franco-Nevada, priced around $170 per share, would yield approximately 58 shares, offering peace of mind through diversification in a volatile market [15]

Core Viewpoint - Franco-Nevada Corporation has agreed to suspend its arbitration proceeding related to the Cobre Panama mine after engaging with the Government of Panama's legal counsel [1][2] Group 1 - Franco-Nevada had previously filed a request for arbitration under the Canada-Panama Free Trade Agreement to the International Centre for Settlement of Investment Disputes on June 27, 2024 [1] - The company expresses hope for a resolution that benefits the Panamanian people and all parties involved [2]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Franco-Nevada (FNV) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market; FNV has a Zacks Rank of 1 (Strong Buy) [3] Group 2: Performance Metrics - FNV shares have increased by 2.72% over the past week, while the Zacks Mining - Gold industry has risen by 2.96% during the same period [5] - Over the last quarter, FNV shares have gained 10.22%, and over the past year, they have increased by 47.84%, compared to the S&P 500's gains of 8.57% and 11.45% respectively [6] - The average 20-day trading volume for FNV is 762,232 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, 6 earnings estimates for FNV have been revised upwards, increasing the consensus estimate from $4.22 to $4.48 [9] - For the next fiscal year, 5 estimates have also moved higher, with no downward revisions noted [9] Group 4: Conclusion - Considering the performance metrics and earnings outlook, FNV is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Group 1 - Franco-Nevada (FNV) is currently outperforming the Basic Materials sector with a year-to-date return of 46.1%, compared to the sector's average return of 9.3% [4] - The Zacks Rank for Franco-Nevada is 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a consensus estimate for full-year earnings having increased by 20.5% in the past quarter [3] - Franco-Nevada belongs to the Mining - Gold industry, which has seen an average gain of 58.4% year-to-date, indicating that FNV is slightly underperforming its industry [5] Group 2 - Fortuna Mining (FSM), another stock in the Basic Materials sector, has outperformed with a year-to-date return of 60.4% [4] - Fortuna Mining has a Zacks Rank of 2 (Buy), with its consensus EPS estimate increasing by 12% over the past three months [5] - The Mining - Miscellaneous industry, to which Fortuna Mining belongs, is currently ranked 138 and has moved up by 10.9% year-to-date [6]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its positive testimonials [1] - The mention of "Shark Tank" indicates a cultural reference that may resonate with investors familiar with entrepreneurial ventures, but does not provide direct financial insights [1] Group 2 - There is a disclosure regarding the analyst's long position in TPL and LB, indicating a vested interest in these companies, which may influence the analysis presented [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole, emphasizing the independent nature of the analysts [3]

Group 1 - Franco-Nevada (FNV) has returned 43.1% year-to-date, significantly outperforming the Basic Materials sector, which has returned an average of 6.8% [4] - The Zacks Consensus Estimate for FNV's full-year earnings has increased by 11.6% over the past 90 days, indicating improved analyst sentiment [4] - Franco-Nevada holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for the stock [3] Group 2 - Franco-Nevada is part of the Mining - Gold industry, which consists of 39 companies and is currently ranked 14 in the Zacks Industry Rank [6] - The Mining - Gold industry has an average year-to-date return of 46.4%, indicating that FNV is slightly underperforming its industry [6] - Coeur Mining (CDE), another stock in the Basic Materials sector, has returned 42.3% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Industry Overview - Gold prices have been on the rise, reaching $3,415.57/ounce on May 5 and stabilizing around $3,300/ounce thereafter, positively impacting gold mining stocks [1][2] - The increase in gold prices is attributed to concerns over U.S. government debt, weak demand for long-term treasury bonds, and a declining dollar, with the World Gold Council noting a scarcity of gold deposits in the mining industry [2] - Central banks in emerging economies are increasing their gold purchases, and the rising use of gold in energy, healthcare, and technology is expected to create a demand-supply imbalance, further driving prices [3] Investment Opportunities - Investing in gold mining stocks with a favorable Zacks Rank is recommended, with five highlighted stocks: Franco-Nevada Corp. (FNV), Newmont Corp. (NEM), Kinross Gold Corp. (KGC), Royal Gold Inc. (RGLD), and Agnico Eagle Mines Ltd. (AEM), all currently rated as Strong Buy [4] Positive Catalysts - Global central banks are cutting interest rates to stimulate economic growth, which benefits non-income-bearing assets like gold, while a weak U.S. dollar increases demand for dollar-denominated gold [5] - Ongoing geopolitical conflicts, such as the Russia-Ukraine war and unrest in Southeast Asia, are expected to keep gold prices buoyant as it is viewed as a safe-haven investment [6] - Major investment banks like Goldman Sachs and JP Morgan predict gold prices could reach $4,000/ounce by 2026, indicating continued bullish momentum [7] Company-Specific Insights Franco-Nevada Corp. (FNV) - FNV is positioned for strong earnings growth due to increased contributions from streaming agreements and a focus on cost management despite lower output from Cobre Panama [10] - The company has a debt-free balance sheet and plans to use free cash flow for portfolio expansion and dividends, with expected revenue and earnings growth rates of 31.5% and 29.9%, respectively, for the current year [11][12] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a commitment to invest $950 million to $1,050 million in development capital [13][14] - The expected revenue and earnings growth rates for NEM are 2% and 20.1%, respectively, for the current year [14] Kinross Gold Corp. (KGC) - KGC has a strong production profile and is focusing on organic growth through projects like Tasiast, which is expected to enhance production and cash flow [15][16] - The expected revenue and earnings growth rates for KGC are 15.3% and 63.2%, respectively, for the current year [17] Royal Gold Inc. (RGLD) - RGLD benefits from solid streaming agreements and a strong balance sheet, with plans to allocate cash flow towards dividends, debt reduction, and new ventures [18][19] - The expected revenue and earnings growth rates for RGLD are 24.1% and 35.2%, respectively, for the current year [19] Agnico Eagle Mines Ltd. (AEM) - AEM is focused on executing projects that will enhance production and cash flows, with strategic acquisitions and expansions strengthening its market position [20][21] - The expected revenue and earnings growth rates for AEM are 23% and 42.6%, respectively, for the current year [22]

Group 1: Acquisition Overview - Franco-Nevada Corporation (FNV) has announced the acquisition of a royalty package on the Côté Gold Mine in Ontario for $1.05 billion in cash, enhancing its portfolio and generating immediate gold revenues from a significant new mine [1][7] - The Côté Gold Mine is a joint venture between IAMGOLD Corporation (IAG) and Sumitomo Metal Mining Co. Ltd., with IAG holding a 70% stake and Sumitomo holding 30% [2] - The mine contains 16 million ounces of Measured and Indicated Mineral Resources and 4 million ounces of Inferred Mineral Resources [2] Group 2: Royalty Details - The royalty package includes a 7.5% gross margin royalty applicable to 100% of mineral production from the Chester claims, covering all Mineral Reserves and over 99.9% of current Mineral Resources at the mine [4] - Existing royalty arrangements will be replaced with a new agreement that clarifies audit and information rights, while the payment calculation methodology will remain unchanged [5] Group 3: Financial Projections - Franco-Nevada is expected to generate annual revenues of $67 million at a gold price of $3,200 per ounce from this acquisition [7] - The mine is projected to reach its nameplate capacity of 13 million tonnes per annum (Mtpa) by year-end, with potential increases to 20 Mtpa [9] Group 4: Operational Efficiency - The Côté Gold Mine utilizes modern design and technology, including autonomous equipment and efficient milling, which are expected to keep production costs low [8] - The mine's cash costs are anticipated to decrease as production volume increases and operational processes improve [8] Group 5: Market Performance - Franco-Nevada's shares have increased by 39.8% over the past year, compared to the industry's growth of 43.4% [10]