January has been quite a choppy month for new investors, with explosive moves made in both directions. Of course, volatility levels were intensified amid a drastic rise in geopolitical tensions. But investors panicked over the steep ups and downs shouldn’t yet think about bailing on stocks, even if valuations are a tad on the stretched side.
With the AI trade still in play and a number of TSX stocks that are still looking cheap despite their past year of gains, perhaps it’s time to add on strength rather than ring the register if you’ve already got way too much cash sitting on the sidelines. If you’re light on cash and can’t handle a 10% drawdown in the broad markets, though, definitely do consider taking some profits off the table, preferably with some of the names you deem as overpriced.
In this piece, we’ll look at two impressive stocks that might be poised to end the month of January with even more strength.
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Agnico Eagle Mines
Shares of the $142 billion gold miner Agnico Eagle Mines (TSX:AEM) are already hitting the ground running, with a 22% gain in the books for 2026 already. Undoubtedly, the geopolitical tensions and the selling of the U.S. dollar have really added extra shine to the price of gold. And while it’s really hard to tell how high the asset can fly, I think that the shiny metal is proving itself as one of those must-have hedges against the unknown.
If you fear the Greenland situation and the impact on the U.S. dollar, perhaps gold is the new asset to stick with for the long haul. Either way, the miners look poised to keep cashing in on the gold rally as prices look to flirt with US$5,000 per ounce. I certainly think the stage is set for a run to such levels. Either way, AEM stock is a great buy at less than 30 times trailing price to earnings (P/E).
You’re getting one of the biggest winners in precious metals, and with enough drivers in place to power more momentum, I certainly wouldn’t want to stand in the way of the name as it looks to test the $300 per-share range. Sure, the stock may be up 326% in two short years, but the momentum might not reverse course anytime soon, especially if the geopolitical tensions soar further from here.
Royal Bank of Canada
Shares of Royal Bank of Canada (TSX:RY) seem to be worth sticking with, even if the multiple (16.5 times trailing P/E) leaves a lot to be desired. With a sub-3% dividend yield and a lot of heat running behind the stock, it feels like it’s time to hit that sell button. Still, with RBC CEO saying things like he’s “more excited” about Canada’s growth potential, I think it’s time to stick with the big bank as earnings look to march higher.
Though there are higher yields and lower multiples elsewhere in the banking scene, I must say that it’s hard to go wrong with shares of RY, especially in an environment where premium management could be key to further gains as the Canadian economy looks to heat up.
