Volatility continues to characterize the commodities markets, and we have seen a downside correction in the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) of about 17.3% since August 5th. Of course, this negative activity follows a tremendous surge in bullish momentum on longer-term time horizons. Since March 13th, GDXJ has generated gains of more than 183%, and we expect safe haven buying of precious metals to continue against rising macroeconomic uncertainties (such as the recent reports of coronavirus in the U.S. government). Overall, we believe that this environment should help the junior gold miners maintain positive momentum in upcoming earnings reports, and we rate GDXJ as an instrument that is likely to “outperform” based on its broadly diversified exposure to a sector of the market that is benefitting from an acceleration in momentum.

Source: Author via Tradingview

The VanEck Vectors Junior Gold Miners ETF is associated with an expense ratio equal to 0.53%, and the fund currently has $5.87 billion in assets under management. One of GDXJ’s distinguishing features is that it offers broad regional exposure that is diverse, and this element can be a helpful factor when investors seek to reduce additional risks associated with certain geographical areas:

Source: ETF.com

GDXJ’s 10 largest holdings count for 43.16% of the fund’s total valuation, and this is positive because figures under 50% will generally indicate favorable diversification levels. Two of the VanEck Vectors Junior Gold Miners ETF’s most important holdings include Northern Star Resources (OTCPK:NESRF) and Gold Fields Limited ADR (NYSE:GFI).

Positive earnings trends from both of these companies appear to be showing bullish momentum that could carry over into upcoming quarters, and we might see further gains in the VanEck Vectors Junior Gold Miners ETF if these companies are able to produce results that are aligned with these upbeat

Our indicative theme on Expensive Performers – which includes companies trading at increasingly higher valuation multiples but are executing well, with consistently expanding Operating Margins and Revenues – is up by about 39% year-to-date on an equally weighted basis. This compares to the S&P 500 which is up by just about 5% over the same period. We believe that companies in this theme are likely building a competitive advantage in the businesses they are operating in, implying that earnings growth could be stronger going forward. Veeva Systems (VEEV), up 96% year-to-date, is the biggest driver of the theme’s return this year. On the other side, Heico (HEI) stock is down by about -7% year to date. Below is a quick rundown of some of the stocks and their performance over the past year.

See our theme on Expensive Performers for detailed criteria for picking the stocks in the theme.

Veeva Systems (VEEV) is a cloud-computing company focused on applications for the pharmaceutical and life sciences industry. The stock is up by 96% year-to-date. (related: Veeva Systems & Ansys – Two Software Stocks You May Have Overlooked)

VEEV

ServiceNow (NOW) develops a cloud computing platform to help companies manage digital workflows for enterprise operations, The stock is up by 75% year-to-date.

Pool Corporation (POOL) is a wholesale distributor of swimming pool supplies and equipment.  The stock is up by 53% year-to-date.

IDEXX Laboratories (IDXX) sells products and services catering to the companion animal veterinary, livestock and poultry, water testing, and dairy markets. The stock is up by 47% year-to-date.

MSCI (MSCI) is a financial data provider that is best known for its financial indices, which money managers use to benchmark investment performance. The stock has gained 35% year-to-date.

Heico Corporation (HEI) is an aerospace and electronics company that focuses

Our indicative theme on Expensive Performers – which includes companies trading at increasingly higher valuation multiples but are executing well, with consistently expanding Operating Margins and Revenues – is up by about 39% year-to-date on an equally weighted basis. This compares to the S&P 500 which is up by just about 5% over the same period. We believe that companies in this theme are likely building a competitive advantage in the businesses they are operating in, implying that earnings growth could be stronger going forward. Veeva Systems, up 96% year-to-date, is the biggest driver of the theme’s return this year. On the other side, Heico stock is down by about -7% year to date. Below is a quick rundown of some of the stocks and their performance over the past year.

See our theme on Expensive Performers for detailed criteria for picking the stocks in the theme.

Veeva Systems is a cloud-computing company focused on applications for the pharmaceutical and life sciences industry. The stock is up by 96% year-to-date. (related: Veeva Systems & Ansys – Two Software Stocks You May Have Overlooked)

VEEV

ServiceNow develops a cloud computing platform to help companies manage digital workflows for enterprise operations, The stock is up by 75% year-to-date.

Pool Corporation is a wholesale distributor of swimming pool supplies and equipment. The stock is up by 53% year-to-date.

IDEXX Laboratories sells products and services catering to the companion animal veterinary, livestock and poultry, water testing, and dairy markets. The stock is up

Starbucks  (SBUX) – Get Report shares rose Wednesday after Cowen analyst Andrew Charles upgraded the coffee-bar chain’s stock to outperform from market perform and raised his share-price target 29% to $99 from $77.

“We view early signs of the U.S. recovery as durable, aided by broadening digital access through expanded pay options for loyalty and 23% of U.S. stores adding curbside pickup,” he wrote in a commentary.

“Covid-19 presents new efficiency opportunities [to drive] 15% earnings-per-share growth for 2022-2023, he said. The shares risk/reward balance is “compelling, as our bull/bear cases suggest 2-to-1 upside/downside ratio.”

The Seattle chain’s stock recently traded at $86.72, up 2.3%. The shares have eased 1% this year. The new price target indicates 17% upside from Tuesday’s close at $84.80.

“We view Americas same-store sales as the key metric for SBUX, given a 0.8 correlation with SBUX’s forward price-to-earnings multiple pre-covid-19,” Charles said.

“We believe Starbucks is pursuing the right structural drivers to help transcend displaced morning routines, including broadening payment options beyond a Starbucks card for customers to join My Starbucks Rewards loyalty program.”

That also includes the additional curbside-pickup capacity and “on-trend plant-based-menu innovation,” Charles said.

“This should help Starbucks extend the sales recovery and gives us confidence in potential upside to comps,” he said. 

Charles views Starbucks stock as “attractive on a total-shareholder-return basis, with room for multiple expansion.”

Starbucks said two weeks ago that comparable sales in the U.S. and China continued to improve in August, as the impact of coronavirus lockdowns eased in its two largest global markets.

In June the company introduced a breakfast sandwich made with Impossible Foods’ plant-based sausage.

By Sagarika Jaisinghani

Sept 29 (Reuters)The Brazilian real and the Mexican peso outperformed Latin American currencies on Tuesday following a slump in the past two sessions, while regional equities tracked a slide on Wall Street ahead of the U.S. presidential debate later in the day.

The real BRBY was up 0.2% by 1524 GMT, with the dollar slipping from recent two-month highs as investors held off on making big bets ahead of the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden. FRX/

Brazil’s real has fallen to record lows this year due to the economic fallout from the COVID-19 pandemic, although a string of recent data has raised hopes that Latin America’s largest economy could return to growth next year.

Investor sentiment has also been subdued by concerns around the government’s plans to fund a new minimum income program called Renda Cidada, which translates as “Citizen Income”.

“The market is still digesting the news of the Citizen Income financing and will be waiting for some explanation from the government” on how to reconcile this spending with an already tight budget, said Victor Beyruti, economist at Guide Investimentos.

The Mexican peso MXN= gained 0.3%, snapping a two-day losing streak, while the country’s stock index .MXX fell half a percent with financials and consumer staples stocks leading declines.

Samuel Bentley, a client portfolio manager at fund house Eastspring Investments, told the Reuters Global Markets Forum that broad weakness in emerging stocks had created value opportunities and that his fund was considering increasing exposure to Mexico, among other countries.

The Chilean peso CLP= eased 0.2% and was on course for its second straight monthly decline, while the Peruvian sol PEN= and Colombian peso COP= shed about 0.1% each.

A basket of Latin American equities .MILA00000PUS tumbled