The Tape Says Buy — These 3 Growth Stocks Are the Obvious Trade Right Now

Finding top growth stocks to buy that not only have the solid underlying fundamentals that support their investment theses over the long-term, but also have excellent technical fundamentals supporting their near and medium-term outlooks isn’t easy. 

Personally, I’m not necessarily a short-term investors, though I have made what some would call “swing trades” in the past. Rather, I tend to focus on long-term investing, buying stocks with the purpose of holding them for at least a decade (or three, hopefully). In that sense, I may not be the best person to “assess the tape” or the near-term technicals of any given stock, but I’ll give it a try. 

To me, these three growth stocks have the right mix of near, medium and long-term underlying fundamentals that scream buy. Let’s dive in. 

Sibanye Stillwater (SBSW)

For those looking for a gold miner with explosive earnings potential, Sibanye Stillwater (NYSE:SBSW) looks like a great pick right now. 

Sibanye is a leading South African gold miner focusing on producing not only gold, but platinum. These two metals have been on an absolute tear of late, and so has SBSW stock. Up more than 230% over the past year, it’s clear that investors are looking for more international exposure to gold, and the best operators in this sector. I’d argue that Sibanye could likely give most companies in this sector a run for their money. 

With this stock continuing to hug the 50-day moving average as trading volume has spiked, that’s a sign to me that there’s some classic accumulation taking place before the stock takes another leg higher. I don’t know what will get Sibanye there. It could be surging gold prices as a result of this ongoing geopolitical conflict and a flight to safety, or investors increasingly focusing on companies’ balance sheets and fundamentals.

In either case, I think investors are in good hands. With solid Q4 results highlighted by operating margins which expanded as a result of increased cost discipline in a rising commodity price environment, I’d argue that the medium and long-term outlooks for Sibanye remain strong. This is a solid buy in my view, and a stock I have near the top of my watch list right now. 

Nexa Resources (NEXA)

I’m sticking with the commodities trend in this piece (and my next pick is going to be no different). That said, I’m a fan of Nexa Resources (NYSE:NEXA) right now, for many of the same reasons as Sibanye. 

Now, Nexa is a different company in the sense that this firm is focused on mining for zinc and other metals in Latin America. As such, this is more of a battery minerals play I’d suggest is more closely tethered to the electrification trends we’re seeing play out, as well as the rise of AI.

That’s not too bad, at all. And with solid fundamentals (the company recently posted EPS which surged more than 2,000% on a year-over-year basis, beating extremely high expectations), this is a stock that’s firing on all cylinders. As margins have continued to expand due to robust demand for zinc led by EVs and renewables demand globally, Nexa has raised its forward guidance to nearly 100% EPS growth next year. 

Given how far Nexa has come, and how robust the near and medium-term outlook is for the key minerals this company mines, this is a stock I think investors won’t want to sleep on right now. 

Aura Minerals (AUGO)

Finally, we have a gold explorer on steroids in the form of Aura Minerals (NASDAQ:AUGO). This company is among the leading gold miners in Brazil, Mexico and Honduras. These are markets that are generally viewed as somewhat speculative from a geopolitical risk standpoint, but actually have a solid history of favorable mining regulations and governments which are amenable to companies looking to create jobs and economic value domestically. In that regard, I think Aura has plenty of upside over the long-term.

Of course, that’s to say nothing of soaring gold prices, which remain above the $5,000 per ounce level. With solid recent price action (AUGO stock is up more than 200% over the course of the past year), there’s plenty of momentum for traders to point to as reasons to own this stock. 

I think the company’s strong fundamentals, highlighted by EPS growth of roughly 350% year-over-year position Aura for significant upside over time. That is, if the company can maintain its margins and operating model for an extended period of time.

Currently, I don’t see any indications that this won’t be the case moving forward. So, for those bullish on gold prices heading higher, I don’t think it’s worth waiting on this particular name.