The energy sector is the preferred investors’ industry

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The energy sector is the preferred investors’ industry

The eurozone background looks very encouraging in terms of vaccination, growth and policy support. The eurozone is facing a strong earnings recovery and is trading at a lower price.

These countries are doing cheap business, according to JPMorgan.
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This year, the eurozone is one of the best performing regions. We upgraded the eurozone late last year, taking advantage of [its] rapid performance, “analysts said, adding that they prefer stocks that operate domestically rather than internationally. The European Union has raised 900 900 billion to help block the recovery from the corona virus epidemic.

“Japanese equity continues to trade at record lows,” he said, adding that Japanese stock prices “look attractive.”

“We are confident that the cash-rich balance sheet will help Japanese corporations cope with the worst effects of the crisis,” analysts wrote.

JPMorgan is underweight in both markets.

Analysts have named several stock baskets for Europe that play on a variety of topics. It selected airport operator Flugafen Zurich, billboard company JCD Quix, tire maker Perelli, airline Rainier, and fashion brand Hugo Boss for its “JPM Continental Reopening Basket”.

Adidas, food company Hello Fresh, insurance company Admiral Group, pharmaceutical firm Roche, and French grocer Carrefour were among a bunch of “Covid 19 Positive Effects Dramas” that benefited people working at home during epidemics. ۔ According to the bank, such choices “could offer potential short-term opportunities”. Short sale is a strategy used by investors who borrow the stock and sell it immediately, betting that the price will fall. When that happens, they buy the stock and resell it to the lender, making a profit.

CaixaBank, Poste Italiane, Merlin Properties, and Commerzbank were among the stocks recommended in “JPM Eurozone Domestics”. “We are confident that domestic stocks will perform better as the eurozone’s relatively strong growth trends continue,” analysts said.

According to JPMorgan, many stocks are expected to benefit from infrastructure investment in the United States and Europe. Analysts predict that “the infrastructure bill announced in the United States could be a larger and more targeted way to support the economy.” Democrats hope President Joe Biden’s infrastructure bill will be passed by the end of the month.

According to JPMorgan, some European companies operating in the United States are likely to benefit from such a scheme, including equipment rental company Stuart Group, Deutsche Telekom, building materials company CRH, and cable manufacturing. Company Personman.

JPMorgan chose “Target Stocks for October” in a separate research note viewed by analysts. Sentry Beverage and Food is on the list because it is “entering a phase of structural profit growth” and analysts said in a note dated September 30 that it has also acquired Mitsubishi UFJ. Selected the bank above and said that the profit will probably increase in the next three years. Tokyo Tatimono, a real estate firm, is also on its “strong profit path” list.

India’s best energy stocks
India’s best energy stocks
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By the end of Thursday, US crude had risen more than 15 percent in a month, while high-grade thermal coal prices continued to rise to new heights. Rising coal prices have forced Indian power companies to cut coal imports sharply, leading to alarming commodity shortages.

Although higher oil and coal prices in the United States are likely to have a limited immediate impact on inflation in India, due in part to government tax buffers, according to a September 29 report in the United States, they are expected to affect some industries. And the impact of earnings on stocks. Investment bank.

5 stocks that could rise in value.

The Bank of America has identified five stocks that will benefit from higher oil and coal prices.

The bank’s state-owned Coal India is a “buy” call, producing more than 80 percent of the country’s coal. According to the Bank of America, stocks could benefit from an increase in imported coal prices as domestic spot prices rise in auction of goods. India distributes coal, which has resulted in the addition of Indian aluminum and copper manufacturer Hindalco to its “buy list”. According to the bank, Hindalco’s revenue could increase by 1.7% for every ڈالر 50 per tonne increase in LME prices.

According to Bank of America, Tata Power, an electric utility company, “could benefit from higher profits in Indonesia’s coal mines [joint ventures].”

In other news, the rise in diesel prices could help the state-owned container port operator and cargo carrier Container Corporation of India gain market share from “road-based logistics operators” while the Oil and Natural Gas Corporation.

The recent stock market gains in everything from solar to hydrogen stocks could be a sign of things to come, especially as the world shifts to more renewable energy sources while demand for oil and gas remains strong. According to analysts, clean energy reserves have outgrown government support as a result of shortages in traditional goods and price pressures.

One reason, according to Bejo Perincheril, an energy analyst at Susquehanna, is that the clean energy industry has matured. “The renewable sector was not profitable on its own, but it is now, so you can look at the economy and say that conventional energy being expensive is actually the advantage of alternative energy names.” “I’m not sure you’ve made it as clear as before,” he said.

Perennial expects investors to focus on the group’s earnings soon, and there are difficulties due to supply chain shortages, rising costs, and uncertainty surrounding imports and tariffs. However, he believes demand is strong, and that the group has more attractive prices than ever before. He said the group could also benefit as Congress considers reconciliation legislation, which is expected to include clean energy provisions.

“I don’t think the rise in gas and oil prices will eliminate the need to move to renewables, or to renewables.” The question is how to make it more flexible and reliable. “This is where some sub-sectors, such as energy reserves, can see some help,” he said. “Green hydrogen can achieve traction.”

Steam Inc. is one of their favorite stocks in the storage sector. He also likes First Solar because it manufactures in the United States and is building a second plant.

“In my opinion, the strength of traditional commodities is a long-term positive alternative.” “You will see the price of petrol if you are deciding to buy an EV or a car with a combustion engine,” he said.

“This is already reflected in higher prices for traditional energy names,” he said. “I’m sure it’s a long-term positive for renewables.” It’s an opportunity to reach a net zero goal. Action is needed, and I am confident that government policies are already moving in that direction.

According to analysts, they are being selected in place of clean energy. “These are unstable names.” “They’re out of this world by the end of 2020,” said Stuart Gulkman, CFRA’s energy analyst. “They started falling in early 2021.” I wonder if this is a prediction of sticker shock that will fall on people who heat their homes with fossil fuels.

Gulkman said he was offended by the clean energy sector as a whole, but liked some names. Enfas, a solar inverter company, is one of them. “They are the market leader in residential micro-inverters.” It’s experiencing some cost pressures, but it’s common across the board. “They’re gaining market share, and we like where they are,” he explained.

Plays from the past.

Gulkman follows oil and gas companies, and he finds the sector attractive despite this year’s tremendous profits. The XLE Energy Select Sector SPDRETF is still trading below its January 2020 high. Before Cowed cut oil prices in 2020, energy stocks were unpopular, especially among investors interested in the environment, sustainability and governance, or ESG.

However, analysts believe that the stock still has room for growth and does not reflect the current price of oil, which is above 80 80 a barrel for the first time since 2014.

“In the short term, I would say I prefer the oil and gas above.” “When I look at any of these names, I look at everything over a period of 12 months,” Gulkman explained. “I’m sure renewables will be a big chunk of pie in the medium to long term, but I’m sure it will be a much slower construction than people like.” In the short term, I’m sure people will do their best to keep the lights on and keep warm. I believe this will lead to greater reliance on fossil fuels. “Fossil fuels will continue to play an important role in daily life.”

Perincheril follows oil and gas names and is fast on some of them, including Devon Energy. He expects the sector to focus on capital protection rather than dramatically increasing investment, as in the past when oil prices rose.

Oil companies are avoiding raising production to reinvest capital in profits and contribute to buybacks.

“Investors are putting a lot of pressure on companies to keep the line up and not increase activity,” Perencherl said. “I don’t see a supply response as we’ve seen before.

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