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 now are spiking to highs not seen since May, as investors are finally seeing the likely end of interest rate hikes in Q1 2023.
That big price move above key technical levels, as well as FNV’s solid earnings history of earnings per share (EPS) growth of 35% annually over the past three years, is very appealing right here, right now.
So, today we want you to take advantage of this breakout in FNV with the following action: Buy Franco-Nevada at market, with a protective stop set at $120.00.