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⛏️ Capitalizing on Copper
Plus, Costco sells this much gold and silver per month.
Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | Stocks were mostly flat on Tuesday, with investors struggling to regain positive momentum ahead of the release of key US inflation data.
📈 | One Notable Gainer: Shares of bank holding company Ally Financial rose 2% after Bank of America upgraded the stock to buy from neutral. Bank of America believes the company will see higher earnings than anticipated.
📉 | One Notable Decliner: Cannabis company Tilray Brands saw its shares plummet 21% as it reported a 12-cent loss per share and missed revenue for its fiscal third quarter.
⛏️ | Tomorrow's Trade: Capitalizing on Copper. Scroll down for more.
Plus, if you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Bullish
🟨⬜️⬜️⬜️⬜️⬜️ Bearish
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
GOOG (+1%) Alphabet’s shares rose ahead of its new cloud chip and Google Cloud Next event. Alphabet has surged more than 14% this month (Barron’s)
FCX (+3%) Shares of American mining company Freeport-McMoRan jumped 3% after BofA upgraded the stock, saying it has “blue chip copper exposure” (BI)
TAP (+1%) Goldman Sachs upgraded Molson Coors to buy from neutral with a price target of $75, up from $66. Goldman predicts a Q1 earnings beat (SA)
PFE (+1%) Shares of Pfizer rose slightly after it released positive results from its clinical trial on a respiratory syncytial virus vaccine (Investing.com)
MDIA (+42%) Radio company MediaCo Holding saw its shares jump after an SEC filing showed Standard General owned a 95% stake in the company (BI)
TOGETHER WITH RYSE
Ring 一 Acquired by Amazon for $1.2B
Nest 一 Acquired by Google for $3.2B
If you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one.
RYSE is a tech firm poised to dominate the Smart Shades market (growing at an astonishing 55% annually), and their public offering of shares priced at just $1.50 has opened.
They have generated over 20X growth in share price for early shareholders, with significant upside remaining as they just launched in over 100 Best Buy stores.
Retail distribution was the main driver behind the acquisitions of both Ring and Nest, and their exclusive deal with Best Buy puts them in pole position to dominate this burgeoning industry.
OVERHEARD ON THE STREET
CNN: Tesla settled with the family of an Apple engineer who said the Tesla Model X Autopilot caused his fatal crash.
Bloomberg: Blackstone purchased Tricon Residential for $3.5 billion, leading to the biggest apartment rally since December.
Bloomberg: Intel unveiled its new AI accelerator, Gaudi 3, and claims it can outperform Nvidia’s H100 chip.
TC: Yesterday, Google Cloud announced its first custom-built Arm processor named Axion, claiming it offers 30% better performance than competitors.
Bloomberg: Boeing likely didn’t deliver any 777 freighters during the first quarter, adding to its cash woes.
TOMORROW’S TRADE IDEA, TODAY
Surging Prices
Copper has seen a sharp uptick in prices lately. On Thursday, the price of a May delivery copper futures contract hit $4.2565, the highest price since the start of last year.
Analyst Chris Verrone of Strategas thinks that’s good news for several stocks with exposure to the precious metal. He keyed in on several mining companies he thinks could benefit from the surging prices.
Freeport-McMoRan
Verrone is bullish on Freeport-McMoRan (FCX). The company operates one of the world’s biggest copper mines in the Grasberg mineral district of Papua, Indonesia. Currently, Freeport and its investors hope Indonesia will extend Freeport-McMoRan’s mining license from 2041 to 2061.
However, not every analyst covering the stock is as excited as Verrone - a little over half of analysts give it a buy rating. The stock has a price target representing about a 3% downside, but it has gained close to 18% year-to-date.
Southern Copper
Southern Copper (SCCO) is another mining company seeing a boost in its stock price, up over 29% over the past month.
Like Freeport-McMoRan, analysts covering the stock have mixed reviews, with half giving it an “underperform” rating.
Jefferies (JEF) analyst Alejandro Anibal Demichelis doesn’t see it that way, citing the company’s open-pit, low-cost operations, and high copper reserve life as factors that set it apart from its competition.
The analyst responded to the rise in copper prices by raising his price target for the stock to $130, a 17% upside from Friday’s close.
These companies could provide an opportunity for investors wanting to capitalize on the rise in copper prices.
Which company do you think will outperform over the next 12 months? |
TOGETHER WITH RYSE
Ring 一 Acquired by Amazon for $1.2B
Nest 一 Acquired by Google for $3.2B
If you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one.
RYSE is a tech firm poised to dominate the Smart Shades market (growing at an astonishing 55% annually), and their public offering of shares priced at just $1.50 has opened.
They have generated over 20X growth in share price for early shareholders, with significant upside remaining as they just launched in over 100 Best Buy stores.
Retail distribution was the main driver behind the acquisitions of both Ring and Nest, and their exclusive deal with Best Buy puts them in pole position to dominate this burgeoning industry.
ON OUR RADAR
AP: Amid legal challenges, SEC paused its climate rule. The rule requires US-listed companies to report their climate risks and low-carbon transition plans.
Axios: China’s Gold Rush- Gold continues to hit record highs as China beefs up its reserves, looking to diversify into a stable asset ahead of geopolitical tension.
CNN: America’s Gold Rush- Wells Fargo estimates that Costco sells $200 million in gold and silver monthly.
Axios: A new report shows that for the first time since the pandemic, more workers prefer hybrid work than fully remote setups.
BI: The typical American household needs to spend $445 more a month to purchase the same goods and services as a year ago.
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