Stock Up Sale
Investors are nearing the end of May, and yet there have already been some strong movers this month. Even if we look at the top five companies, two clear trends emerge. Whether you’re looking at the rising price of silver and gold or the rise in clean energy, these could continue to be strong investments for the future.
Clean energy
Some of the highest performance this month has come from clean energy producers. Rounding out the number one spot was Brookfield Renewable Partners (TSX:BEP.UN), which saw its share price surge by almost 40% in May alone.
This came from strong earnings coupled with a partnership with Microsoft to provide 10.5 gigawatts of power between 2026 and 2030. This shows an immense expansion for BEP stock, leading to an immense share price rise as well.
Yet it wasn’t the only clean energy stock powering higher. Another was Cameco (TSX:CCO), which continued to see its share price rise into the $70 range. With shares up 11% in the last month alone, there continues to be overall positive sentiment surrounding Cameco stock, especially as uranium prices continue to climb.
Then there’s Northland Power (TSX:NPI). The diversified renewable energy asset company also saw shares rise higher around broader positive sentiment towards renewable energy companies. This also was coupled with a strong earnings report. Earnings saw sales, gross profit, and net income all increase, leading to the potential for even more growth in 2024.
Overall, these four clean energy companies demonstrated two things: First, they’re performing quite well; second, more growth is likely on the way.
Silver and gold
Then, there are the powers of silver and gold. And this, of course, comes down to the rising price of both materials. When the value of currency weakens due to inflation, the price of gold and silver tends to rise. This is because they are seen as maintaining their inherent value. So, even if prices of everything else go up, your gold or silver holdings should hold their relative value.
This is likely why two other stocks have hit the top-five spot. First, there’s Kinross Gold (TSX:K), whose shares rose by 21% in the last month alone. This came again from the rising price of gold, but other factors also contributed.
These factors included strong earnings that saw the company increase production as well as overall performance. However, it also included that the company’s major Great Bear project should be up and running in 2024.
Then just under Kinross stock was Pan American Silver (TSX:PAAS). Pan American stock is up 20% in the last month, again from the rise in the price of silver, certainly. The company managed to beat out earnings expectations. Revenue was up 54% from last year, though the company continued to operate at a net loss of US$30.9 million. Analysts now predict a more positive earnings outlook as well, which should lead to a higher share price.
Bottom line
While the top performers in May don’t necessarily mean that they’re going to continue performing, in the case of these five that could be the case. Each has a strong outlook as well as further production. Whether it’s power or products, these companies continue to impress analysts and investors alike.
