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Forget ‘FAANG’ growth stocks, one technical analyst touts ‘BAANG’ stocks for a new, scarier era

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Forget ‘FAANG’ growth stocks, one technical analyst touts ‘BAANG’ stocks for a new, scarier era

Published Mon, Jul 22 2019 10:06 AM EDT Updated Mon, Jul 22 2019 4:14 PM EDT

Yun Li@YunLi626

Key Points
  • John Roque, technical analyst at Wolfe Research, believes a group of gold miners he coined as “BAANG” are better plays than mega-cap FAANG names as the popular growth stocks might have reached their peaks and have started losing steam.
  • “We made this index BAANG in homage to the fading FAANG.” Roque said. These gold miners are “much like gold. So gold has broken out but it’s still down way from its highs in the 1900 thereabouts and we think both gold and those stocks have more room.”
  • BAANG stocks are Barrick Gold, AngloGold, Agnico Eagle Mines, Franco-Nevada and Gold Fields.



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VIDEO04:10
An excessively low interest rate is a good environment for gold, analyst says

“BAANG” is the new “FAANG.”
So says technical analyst John Roque of Wolfe Research, who believes a group of gold miners he coined as BAANG— Barrick Gold, AngloGold, Agnico Eagle Mines, Franco-Nevada and Gold Fields — are better plays than mega-cap FAANG names as they might have reached their peaks and started losing steam.

“We made this index BAANG in homage to the fading FAANG,” Roque said Monday on CNBC’s “Squawk Box. ” These gold miners are “much like gold. So gold has broken out but it’s still way down from its highs in the 1,900 thereabouts and we think both gold and those stocks have more room.”
Gold is trading above $1,400 for the first time since 2013 and it is up more than 12% year to date. The precious metal’s strength is backed by safe haven buying amid geopolitical uncertainties as well as the Federal Reserve’s openness to rate cuts this year. The BAANG stocks are up a whopping 42% since May 10, the analyst said.
Meanwhile, Facebook, Netflix and Google’s parent Alphabet are still in the red for the trailing 12 months despite their strong comeback this year. Investors are worried it would be hard for those tech giants to turn around as the government’s antitrust investigations heat up. Many market participants said Big Tech, which led much of the current bull market, is starting to lose its characteristic mojo amid trade tensions and a global economic slowdown.
Netflix continued its slide Monday after a surprising drop in its subscriptions number was released last week. Amazon and Facebook are set to report their second-quarter numbers this week. Apple reports later this month.
Roque said Canada-based gold miner Franco-Nevada is his favorite stock among BAANG. The company has risen nearly 28% this year so far.

AngloGold is the third-largest gold mining company in the world by production. Its stock has surged more than 50% in 2019. South Africa-based miner Gold Fields has skyrocketed nearly 60% this year.

Its CNBC, hence the SCARIER reference.