Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
RBC Capital Markets published an updated Global Mining Best Ideas report,
“We maintain our sector weightings and recommend an Overweight position in the Fertilizers sector, and we keep Base Metals & Energy Transition Metals, Precious Metals, Uranium, and Diversified/Bulk Commodities sectors at Market Weight. There was one addition to the Best Ideas Portfolio and three Deletions - we are adding CF Industries (NYSE: CF) and removing Mosaic (NYSE: MOS), Sandfire Resources (ASX: SFR), and Silver Lake Resources (ASX: SLR)… We think there is near-term upside potential to [uranium] prices from ongoing risks to delayed Russian shipments and the uranium market is set to tighten further as Western utilities move away from relying on Russian enrichment, but valuations are relatively full.”
The non-precious metals stocks on the list are:
- CF Industries Holdings Inc. (CF-N)
- Nutrien Ltd. (NTR-T)
- Capstone Mining Corp. (CS-T)
- First Quantum Minerals Ltd. (FM-T)
- IGO Ltd.
- Ivanhoe Mines Ltd. (IVN-T)
- Mincor Resources NL
- Cameco Corp. (CCO-T)
- Anglo Pacific PLC
- Champion Iron Ltd. (CIA-T)
- Glencore PLC
- South32
- Teck Resources Ltd. (TECK.B-T)
" RBC’s global mining best ideas” – (table) Twitter
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Citi strategist Chris Montagu provided an update on the world’s top and bottom performing investment themes,
“Like many investors on the Thematic front, the Theme Machine enters Q4 in negative territory along with the broader market. What is the Theme Machine saying? The broad Energy Transition is still fully in focus in the Theme Machine, with almost half of the Themes screening in the top attractive quintile being related to it, including: Fossil Fuels, Biofuels, Smart Grids, Energy Storage, Wind Energy, Solar, Energy, and Nuclear Energy. Others in the top quintile screening attractively on a forward-looking basis include Ag Demand, Supply Chain Solutions, Family-Run Business, and World Champs.
“Bottom Themes — Macro continues to dominate the market. For the first time in a while however the least attractive thematic quintile sees most Technology-related themes lifted out of this bottom tier. That said, we continue to see Healthcare-related thematics feature prominently here "
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Goldman Sachs strategist John Marshall wrote Top 25 Tactical Trades for Earnings Season that included both solid context for earnings season and a list of 17 stocks where Goldman Sachs analysts expect profits to exceed consensus estimates,
“Consensus S&P 500 EPS estimates have been revised down 6% over the past six months. Results may beat lower estimates, but recent earnings reports and preannouncements suggest forward estimates are likely to be revised down further following earnings… Investors are positioned for a bullish move in SPX. Retail investors continue to dominate markets, but have moved from buying single stock calls to buying index calls.”
The 17 buys are Discover Financial, Huntington, Raymond James, Intuitive Surgical, Maraval LifeSciences, AGCO Corp., Boeing Co., Bunge, Darling Ingredients, KBR Inc., Steel Dynamics, Post Holdings, Costar Group, Datadog Inc., Meta Platforms, Payoneer Global, and Snowflake Inc. The sell ideas are Canadian Solar, Franklin Resources, Landstar System, Woodward, Sprouts Farmers, Cinemark Holdings, Gentex Corp and Intel Corp.
“From GS’s Top 25 Tactical Trades for Earnings Season” – (table) Twitter
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Diversion: “There Are No ‘Five Stages’ of Grief” – The Atlantic
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