Leaders and Laggards: Commodity Stocks

With four months complete, 2014 has been a mixed bag for commodity producing stocks. While broad equity markets are hovering at about breakeven for the year, many commodity intensive stocks have made big pushes in both directions. Below is a look at some of the sectors that are both leading and lagging through the first four months of 2014:

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7 Commodity Producers That Are Dividend Aristocrats

Though the commodity space has faced significant headwinds over the past year, there have been certain corners of the market that have proven to be worthwhile investments. One such segment has been commodity producer equities – some of which have benefited from the bull run seen in 2013. But for those investors who are still looking for more bang for their buck, we turn to an elite group dubbed the “Dividend Aristocrats.” This select group of companies have increased their annual dividends every year for at least the past 25 years, giving yield-hungry investors a steady stream of current income [for more on commodity dividends subscribe to our free newsletter].

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Major Commodity Earnings On Tap: EPB, KMI, SLB

With Alcoa (AA) kicking off earnings season this week, investors will be keeping a close eye on the results of their favorite commodity stocks. On Tuesday, the largest U.S. aluminum producer reported a profit of $24 million in the third quarter – a significant uptick from the $143 million loss reported a year ago. Revenues for the company came in at $5.765 billion, beating analyst estimates of $5.66 billion; Alcoa’s Q3 EPS of $0.11 also beat estimates by $0.06. In the coming week, investors will once again comb through a slew of earnings reports, but what is perhaps more important than the reports themselves is the particular outlook that each company provides [for more commodity news and analysis subscribe to our free newsletter].

Posted in Coal, Commodity Producers, Earnings, Earnings Reports, Energy, Industrial Metals, MLPs, Natural Gas, Steel, WTI | Tagged , , , , | Leave a comment

Ukraine Ignores Russian Threats Against New EU Trade Deal

In the commodity world, trade agreements and regulations can either make or break a particular market. Whether it be new alliances, tariffs, or taxes, each decision made by commodity producing countries can have a significant and material impact on the flow of goods and natural resources. Over recent years, one country has struggled to take a concrete stance on its trade agreements, going back and forth between new and forward-looking trade ventures to the West and its long and tangled ties with its neighbor (and once oppressor). This week, however, Ukraine finally took a stand against Russia, giving the formal go-ahead for its landmark trade deal with the European Union [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Brent Oil, Coal, Cotton, Energy, Industrial Metals, Natural Gas, Steel, Sugar, Wheat, WTI | Leave a comment

Commodity Stocks To Buy On The Dip: MON, NUE, PSX

U.S. markets have managed to rebound ferociously over the last two weeks as bargain shoppers stepped in following the Fed stimulus-fear induced sell-off which started on 5/22/2013. With earnings seasons upon us however, the bull may be in for a rude awakening as volatile trading and profit taking can sweep over Wall Street at the slightest sign of industry bellwethers missing the mark and revising their outlooks[for more commodity futures news and analysis subscribe to our free newsletter].

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Major Commodity Earnings This Week: Energy On Tap

With Alcoa (AA) kicking off earnings season early last week, the focus for many investors has shifted away from larger macroeconomic reports and honed in on the reports of industry bellwethers. While Alcoa set the tone by beating estimates, many feared that the company would eventually fall prey to weakening aluminum prices, getting the second quarter earnings season off to a foggy start. This week, though mostly filled with major financial institutions, will feature several reports from key players throughout the commodity world, with a focus on energy [for more commodity news and analysis subscribe to our free newsletter].

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Contrarian Alert: Is It Time To Buy Cliffs Natural Resources (CLF)?

The party continues on Wall Street; investors remain bullish on stocks judging by the sheer price action as both the S&P 500 and Dow Jones Industrial Average managed to close out last week well above their all-time highs. The economic data front is sending hints of a potential downturn as manufacturing indicators remain weak; nonetheless, this has failed to put a noticeable dent in the bulls’ armor of confidence as markets shrugged off last week’s worse-than-expected industrial production data [for more market news and analysis subscribe to our free newsletter]. Not every stock is surging to record highs; in fact, one particular large-cap miner offers a risky, but compelling, opportunity for investors still looking to get a piece of the action on Wall Street. Contrarian investors should add Cliffs Natural Resources (CLF) to their watchlist because this former S&P 500 sweetheart is resting on major historical support, thereby offering a great entry point for those … See the full story here

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Nucor (NUE) Fights To Stay In Trading Channel

Last week’s disappointing employment report put a dent in the bulls’ confidence; however, the parade has resumed with full force this week thanks to a solid start to earnings season with better-than-expected results from Alcoa. While major equity indexes have resumed their ascent to record highs, the skeptics continue to call for a market top in the face of rising prices. With no major fundamental changes taking place over the last few weeks, it’s difficult to gauge when the long-overdue correction will actually strike, as traders and investors alike have more reasons to buy on the dips rather than take profits [for more market news and analysis subscribe to our free newsletter]. Steel manufacturer Nucor Corporation (NUE) presents an intriguing opportunity at the moment that warrants a closer look from swing traders looking to get a piece of the action on Wall Street.

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Investing In Steel: The Definitive Guide

Steel has been known to mankind for thousands of years; its use dates back to the 1700s and has played a key role in human infrastructure. While new stronger metals—like titanium—have since developed, steel is the most cost-effective option for building products, and it remains in high demand worldwide [for more gold news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Industrial Metals, Steel | Tagged , , , , | Leave a comment

United States Steel Corp. (X) Looks Like A Steal

The bull train continues to roll ahead as generally upbeat corporate earnings haven’t given investors enough reason to take profits off the table. Major equity indexes have yet to deviate from their steep upward trajectory since the start of 2013, with the Dow Jones Industrial Average and S&P 500 both posting fresh five-year highs and breaking past their psychologically significant 14,000 and 1,500 levels respectively. Amid the improving sentiment on the equity front, commodity prices have been all over the board, making it even more frustrating for those still waiting on sidelines to jump in; some are hesitant to go long given the stellar gains year-to-date on Wall Street, while others are fearful of missing out on the next bull market [for more market news and analysis subscribe to our free newsletter].

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