Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
If you don’t pay much attention to fundamentals, and perhaps most importantly to valuation, then chasing momentum stocks can be dangerous. In fact, the hot stocks that are talked about the most on various financial podcasts and TV shows are often also the most crowded. Crowded trades can be full of speculators who are just out to make a quick buck. Ultimately, sharp price swings may be attractive to a stock. However, if there is too much greed for a particular stock, it may be best to let the hot stock cool off. In fact, there is no shortage of grossly overbought stocks in the U.S. stock market.
Cheap stocks with strong share price momentum can be solid bets for value investors looking for both growth and excitement. The following top-performing stocks can be solid bets.
Descartes Group (TSX: DSG) is an $11.65 billion market cap tech company that investors may still be sleeping on as midsummer approaches. The company’s stock is riding high, up 26% year to date. The stock trades at a forward price-to-earnings ratio of 48.3 times. Just a few months ago, the company acquired Aerospace Systems Group for $83 million, a relatively small acquisition that could have a major impact on the company’s growth in the long run. More expansion may be necessary as the little-known software giant continues to strengthen its logistics software services.
Agnico Eagle Mines (TSX: AEM) is a precious metals mining company that has been turning investors’ heads so far this year. Shares of the miner are up a whopping 41% so far this year, thanks to soaring gold prices. If gold rises even more in the coming year, the miner’s stock would be a better choice than gold bullion or gold exchange-traded funds (ETFs). In fact, mining companies are more leveraged when commodity prices soar. While the company’s stock price may be more volatile than gold and silver themselves, the 2.17% dividend yield is very generous and could grow further. In addition, with a forward price-to-earnings ratio of 22.1 times, the stock appears to be severely undervalued, even after its recent parabolic rise.
