Fast Money Moves To Franco-Nevada

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The fast money is on the move, and that’s true of many stocks throughout the market, which jumped after Federal Reserve Chairman Jerome Powell made statements that were interpreted as “less hawkish than feared,” notes Mark Skousen, editor of Fast Money Alert.

And while we aren’t saying there is nothing to fear when it comes to interest rate hikes and Fed policy going into next year, we do think it’s time to jump on one stock that’s breaking out due to a combination of the recent bullish mood, a decline in the U.S. dollar, and a shine in precious metals.

That stock is Franco-Nevada Corp. (FNV). The precious-metals-focused royalty and investment company owns a diversified portfolio of precious metals and royalty streams, which is actively managed to generate the bulk of its revenue from gold, silver, and platinum.

The company does not operate mines, develop projects, or conduct exploration. Franco-Nevada’s short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of assets.

Over the past few weeks, FNV shares have broken back above the 50-day and the 200-day moving averages. Shares have been spiking to highs not seen since May, as investors are finally seeing the likely end of interest rate hikes in Q1 2023.

fnv

That big price move above key technical levels, combined with FNV’s solid earnings history of earnings per share (EPS) growth of 35% annually over the past three years, makes for a very appealing outlook.

So, you may want to take advantage of the breakout in FNV with the following action: Buy Franco-Nevada at market, with a protective stop set at $120.00.


About the Author

Mark Skousen is a financial economist, university professor, and author of over 25 books. Dr. Skousen was recently listed as one of the top 20 living economists in the world. In 2018, Steve Forbes presented him with the Triple Crown in Economics for his work in theory, history, and education. Dr. Skousen is a Presidential Fellow at Chapman University in California, where he received the "My Favorite Professor Award" in 2019.

He has worked for the government (CIA), non-profits (president of FEE), and runs FreedomFest, "the world's largest gathering of free minds," every July in Las Vegas. He has also taught economics and finance at Columbia Business School and Columbia University.

Since 1980, Dr. Skousen has been editor-in-chief of Forecasts & Strategies, a popular award-winning investment newsletter. He has written for the Wall Street Journal and Forbes magazine and has made regular appearances on CNBC's Kudlow & Co., the Santelli Exchange, and C-SPAN Book TV.

Dr. Skousen's bestsellers includeThe Making of Modern Economics, Investing in One Lesson, and The Maxims of Wall Street. Based on Dr. Skousen's work,The Structure of Production (NYU Press, 1990), the federal government began publishing in Spring 2014 a broader, more accurate measure of the economy, Gross Output (GO), every quarter along with GDP.


More By This Author:

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The Best Tech Stock To Own In December
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