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The Earnings For Mining Stocks Are Exploding (Still Top Market Sector)

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You have to realize that mining stocks are doing incredible and still remain one of the top performing sectors of the entire stock market. Thanks to the rising price of gold and silver last year, their earnings are exploding. Last week AEM reported earnings growth of 60% and increased their dividend by 12.5%.

Despite the rise in the stock price, the stock has a P/E of 24.45 and forward P/E of 17.8, while the S&P 500 has a P/E of 27. In other words, this mining stock is still cheaper than the broader stock market and has much greater earnings growth than it too.

This bears out with the entire mining stock sector, as you can see with the GDX mining stock ETF.

While all of the commentators have been focused on the big moves in silver recently, the GDX mining stock ETF has not fallen this year below its 50-day moving average, which has been acting as strong support for it over the past two years.

I own both AEM and GDX.

If you look at the charts of them you can’t tell silver pulled back from its most recent high as much as it has.

-Mike

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