In the stock market, buying stocks that have the ability to turn things around is one of the strategies to keep your portfolio profitable. Shares of well-established, respected companies usually rebound more quickly after a brief decline. Take Palo Alto Networks (NASDAQ:PANW), for example, shares of the cybersecurity giant fell from $360 to a low of $260 as management lowered its revenue guidance for fiscal 2024.
However, just a few days later, shares jumped back up from $260 to near $328. The good news is that there are plenty of turnaround stocks like Palo Alto Networks, such as the following three mining stocks.
Uranium prices are at a 16-year high due to shifting supply and demand fundamentals. That’s certainly good news for uranium miner Cameco (NYSE:CCJ). Meanwhile, Kazatomprom, one of the world’s largest uranium producers, issued an early warning not long ago that it had cut its production target for this year by 12% to 14% because of the production woes it was experiencing, and said that it was likely to fall short of its target for the next two years.
On the other hand, demand for uranium is exploding, especially as global leaders agree to triple their nuclear capacity by 2050. One of the main logics behind the bullish uranium market is that demand for uranium in western markets (excluding Russia), which is currently about 200 million pounds, exceeds the supply of the radioactive metal by about 40 million pounds, the American Nuclear Society noted in a report. And market analysts expect an average annual uranium supply shortfall of 35 million pounds over the next decade.
The lack of supply and growing demand means that uranium prices will continue to rise in the future, allowing companies like Cameco to continue to benefit. Looking at technical charts, Cameco stock is currently consolidating at key support levels, and indicators like the RSI and MACD suggest that prices will continue to rise.
The price of gold has topped $2,100 per ounce, and many gold producer stocks still have a long way to go from their highs, such as Barrick Gold (NYSE:GOLD). On a technical level, this gold stock is completing a double bottom near $14, with shares currently trading at $15.44, and is likely to close the gap down next around $17.50 per share.
In addition, according to the World Gold Council, gold demand is expected to hit another record high this year as central banks continue to buy gold as a safe-haven asset. Central bank purchases have maintained an impressive pace, with annual net purchases of 1,037 tonnes last year, just 45 tonnes short of the record set in 2022, the World Gold Council noted in its report. As gold prices continue to rise, premier gold producers like Barrick are sure to be seen by investors. After all, even millionaires and billionaires are now starting to flee to gold due to fears of a dollar devaluation and the possibility of economic collapse.
It’s not an exaggeration to say that Albemarle (NYSE:ALB) is a stock that has the ability to take things around. In fact, as recently as 26 February, when the lithium stock’s share price fell to $120 per share, analysts were calling for a buy on this excessively oversold mining stock. Then, also within a short period of time, Albemarle’s shares moved higher, just touching $142.80 on speculation that lithium prices had finally bottomed out and were on the verge of a rebound.
Meanwhile, Sociedad y Quimica’s (NYSE:SQM) chief executive officer, Ricardo Ramos, expects lithium prices to remain stable this year, and SQM’s lithium sales to increase. Dale Henderson, managing director of Australian lithium company Pilbara Pilbara (OTCMKTS:PILBF), said all customers are buying their product and some are asking for more, Bloomberg reported. Buying Albemarle shares now could soon pay off handsomely if lithium prices end their decline and start turning upwards.
