Technology and Artificial Intelligence will undoubtedly remain hot spots for the market to chase in 2024. However, given the outlook for interest rates, U.S. election, and the risks and uncertainties associated with a recession, value stocks will still have a place in portfolios. Here are two commodity stocks that investors can focus on: the Barrick Gold Barrick Gold (TSX:ABX) and Cameco (TSX:CCO) are doing well right now, and with a positive price outlook for uranium and gold this year.
Barrick Gold Corp. naturally looks even more glamorous as gold prices hit record highs. Along with falling interest rates and stock market volatility, gold could go even higher in 2024. In fact, major Wall Street investment banks and analysts have been bullish on the precious metal hitting another record high this year and next. And once gold is ready to soar, Barrick Gold stock will become a stock market favourite.
It’s worth pointing out that Barrick stock has followed a typical pattern of moving in the opposite direction of the stock market over the past few years. Moreover, the stock has fallen more than 43% from its 2020 peak. That said, if the stock market surges in 2024, this gold stock has limited room to fall. But if the stock market has a rough year, a big jump in the price of gold will drive a big rally in Barrick’s stock price. This gold stock also offers a 2.31% dividend yield.
Cameco is among the world’s leading uranium producers, and the company is bound to benefit as countries take their nuclear power programs to new heights. Indeed, the nuclear renaissance may just be a key part of the process of reducing the world’s carbon footprint. While nuclear energy comes with its own set of catastrophic risks, safety has improved so much in recent decades that the public rarely equates nuclear power with the Chernobyl or Fukushima disasters anymore.
Over the past year, Cameco’s share price has soared by more than 77 per cent. Although the price has recently retreated, the long-term momentum remains intact. So, given Cameco’s place in the nuclear power transition over the years, it makes sense for investors to continue buying on the upside. While chasing popular stocks always comes with risk, Cameco may be an exception. The company is unique in the uranium sector and has a once-in-a-lifetime opportunity to meet growing demand over the next decade and beyond, so its stock’s current higher valuation remains justified.
