Just because a stock’s enjoyed a massive winning streak doesn’t mean it’s time to book profits. Oftentimes, strength begets more strength as the bull stays in the driver’s seat. That said, if the market price of a stock has exceeded your estimate of what it’s worth, it makes sense to sell, even at close to all-time highs.
In any case, this piece will look at three high-momentum stocks that I think keep getting better as they inch higher. Though shares aren’t as cheap as they once were, they are operating at a very high level. And for that reason, they remain great names to consider holding for many years at a time.
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Cameco
Cameco (TSX:CCO) is a uranium producer that’s worthy of international attention as the AI data centre boom continues to drive energy demand to the next level. The stock has gained 122% in two years, but there’s probably a long way to go as the $45 billion miner picks up speed in the face of some incredible secular industry tailwinds.
Indeed, nuclear energy is a way to meet growing demand without putting more emissions in the air. As more nations warm up to nuclear power, I think uranium prices could be in for a multi-year bullish run. As one of the very few premier uranium miners in the world, I think the stock warrants a huge premium, perhaps larger than the one currently being sported.
At the time of this writing, shares go for over 85 times trailing price-to-earnings (P/E) after slipping 3.7% on Wednesday. Time will tell if the latest dip is the start of a correction. Either way, I’d be a buyer of any corrections, given Cameco’s front-row seat to the nuclear energy boom. Perhaps management is right to view tariffs as “noise” as it focuses on the long-term roadmap.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) is another miner that’s worthy of loading up on right now. Indeed, gold is something you’ll want to own as a hedge in case a stock market shock hits from out of nowhere. Could one hit in September? Time will tell. Either way, Agnico Eagle is a name that I think is a great alternative store of wealth, especially if inflation makes a bit of a resurgence should the Fed slash rates next month.
With a nice 1.2% yield and the boost of soaring gold prices, I think the path of least resistance continues to be higher going into the coming quarters. Could more upside surprises be in store? It’s tough to tell, but 18.4 times forward P/E, I think, is a low price to pay for an absolute market darling.
Brookfield Corp.
Brookfield Corp. (TSX:BN) is an alternative asset management power play that’s worth stashing in a TFSA for life. The company is getting serious about investing in AI infrastructure, which, I think, could keep the multi-year bull run alive and well.
After nearly doubling in two years, BN shares are coming in hot. But with seasoned veterans running the show, I’d not be afraid to stay the course with a company whose stock can consistently top the TSX Index over the long haul.
Perhaps there’s a reason Bill Ackman continues to be one of the firm’s largest shareholders. It’s a wonderful company with some magnificent cash-producing assets that can stand tall, even in tough times. At a 23.1 times forward P/E, shares are more or less fairly valued, making BN stock a great buy on any weakness.
