5 Stocks to Beware — and 2 to Add to Your Watchlist

Markets move in cycles, and right now, one of those cycles looks like it’s turning against two of the hot commodity trades in 2023 and 2024: uranium and steel.

Some of the worst-rated stocks in our system right now? 

Uranium stocks like…

• Energy Fuels Inc. (NYSE: UUUU)
• Denison Mines (NYSE: DNN)
• Uranium Royalty Corp. (NASDAQ: UROY)

And steel names including…

• Cleveland Cliffs Inc. (NYSE: CLF)
• United States Steel Corp. (NYSE: X)

All earn the not-so-coveted rating of F (Strong Sell) according to our Zen Ratings system…

Let’s look at why, and what commodities to consider buying instead. 

The Problem With Steel And Uranium

Uranium’s Sentiment Peak: Uranium stocks had a great bull run coming out of the COVID crash of 2020, but may be losing steam as speculative money fades, contracts get locked in at lower rates, and the price action cools off. Uranium-related stocks like Energy Fuels Inc. (NYSE: UUUU), Denison Mines (NYSE: DNN), and Uranium Royalty Corp. (NASDAQ: UROY) all score an F in our Sentiment, Value, and Financials Component Grades. 

Steel’s Demand Slowdown: Steel names like Cleveland-Cliffs (NYSE: CLF) and U.S. Steel (NYSE: X) have ridden the wave of infrastructure spending and tariffs, but that trade looks weaker as growth slows and steel prices weaken. 

China’s steel output is ramping up as the Chinese market continues its broad rally, which could put further pressure on prices globally. 

These names also aren’t responding positively to potential bullish catalysts, which isn’t a great sign. I was keeping an extra close eye on them in recent weeks because you’d think Trump’s talks of 50% tariffs on steel and aluminum would send these domestic US producers soaring … but even that potential tailwind isn't enough to give US steel stocks a boost. 

The “Bright Spot” In Commodity Markets: Gold and Silver

While steel and uranium stocks are looking weak, we’re seeing strong buy signals in gold and silver miners — particularly Kinross Gold (NYSE: KGC) and Silvercorp Metals (NYSE: SVM), both rated B (Buy) according to Zen Ratings. Our B-rated stocks had an average return of +19.88% per year.

Gold continues to hit new all-time highs, fueled by:

• Central Banks Buying – Global central banks, especially China’s, continue aggressively stockpiling gold.
• US Dollar Decline & Rate Cut Expectations – A falling dollar, which we’ve seen recently, and lower rates tend to boost gold and silver prices.
• Geopolitical Uncertainty – As the world becomes more volatile, gold remains the ultimate safe-haven asset.

SVM and KGC are showing up in multiple top-rated screens, and if the trend in gold and silver continues, miners could be the next breakout trade.

KGC is a gold miner with operations in the U.S., Russia, Brazil, Chile, Ghana, and Mauritania. Strong Component Grades, like an A in Financials and Bs in Value and Momentum, indicate strong free cash flow, gross profit to assets, long-term debt to assets, and more. 

These excellent fundamentals are also part of why it was recently added to our market-beating Zen Investor portfolio. 

Click here to see KGC fundamentals.

Typically when gold starts running the way it has, it’s only a matter of time before silver follows. SVM engaged in the acquisition, exploration, development, and mining of silver-related mineral properties. It’s scoring a B in Value, Growth, and Sentiment, which potentially indicates bullish earnings surprises, earnings revisions, and insider action.

Click here to see SVM fundamentals.

Bottom Line?

There’s always a bull market somewhere, and when one trade fades, another one often takes off. While some commodities are cooling off, gold and silver are running.

If you’re looking for names to buy, check out our latest top-rated stock screener here. 

What to Do Next?

• 8 Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return > 
• 4 Step Process to Find More 100%+ Stock Winners >

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