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Investing.com -- Gold miners enter 2026 with what Jefferies sees as one of the strongest backdrops in years, as the firm reiterates its bullish stance on the sector and highlights a refreshed list of top picks.

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In a new sector preview, Jefferies analyst Fahad Tariq wrote, “We remain bullish on gold equities in ’26 given attractive valuations, even as we are neutral on gold.”

He added that gold companies are poised to “expand margins… and print more FCF YoY in ’26,” with no major cost inflation yet materialising.

Jefferies believes the macro forces that supported bullion in 2025 are set to continue, citing “de-dollarization, the US fiscal situation… macro uncertainty, central bank buying, physical gold ETF demand, and Tether’s gold demand.”

While real rates may not fall much further, the firm argues that “gold is the only true safe haven left.” Its base case is for gold prices to remain rangebound in 2026, with any consolidation still “positive for the sector.”

The research highlights that 2025 marked the year when “free cash flow finally arrived,” noting that gold prices rose about 61% while the GDX surged roughly 140%.

Tariq stated that the industry remains “extremely healthy,” pointing to pristine balance sheets, with nine of the 12 miners it covers in net cash, as well as “strong margins” and increased dividends and buybacks.

Into 2026, Jefferies expects modest cost pressures, potential reserve grade adjustments and a pickup in M&A as cash builds on balance sheets.

Its top picks include Barrick Mining, which Jefferies calls “our top pick among the large-cap gold miners,” citing an estimated 12% free cash flow yield and multiple value-unlocking levers.

Alamos Gold is viewed as a catch-up trade with “the highest quality portfolio among mid-cap gold miners,” while Royal Gold valuation discount is “unwarranted,” according to Jefferies.

Investing.com -- Truist upgraded Five Below to Buy, saying a sharp acceleration in traffic, ticket and broad product strength in the latest quarter points to more durable sales gains and room for the stock’s multiple to expand.

Shares are up more than 2% in Monday premarket trading. 

The broker lifted its price target to $216 from $216 based on 35x forward earnings, calling Five Below’s 3Q performance a turning point.

Same store sales rose 14.3%, with transactions and ticket both up about 7%. Truist said nearly every category posted gains, a breadth it expects to sustain through early 2026, helped by larger tax refunds and improvements in merchandising and value.

The firm said concerns over tariffs, inflation and discretionary spending had kept it cautious, but stronger sales composition and improving execution now support higher estimates.

It expects Five Below to “comp the comp” given the momentum across traffic, ticket and category breadth.

Margins have also run ahead of expectations. Truist said EBIT margin estimates for this year have risen to about 9% from roughly 7% earlier, with further near term upside from sales leverage, tariff mitigation and a recent 10% cut in Chinese tariffs.

It added that margins remain 200 to 300 bps below historical levels, leaving room for continued recovery.

Stock has traded at about 28 to 30x earnings since July, roughly in line with its market premium, even as sales and margin trends improved.

With Five Below delivering a 14% comp in a difficult retail backdrop, the firm said the company’s growth profile supports a higher valuation.

“FIVE has largely moved in-line with the upward earnings revisions and the multiple is still well below historical. Given the sustainability of the comps and upward earnings potential, we think the stock has much further to go on the upside,” analysts said.