5 Materials Sector Stock Picks With Attractive Supply-Demand Dynamics For 2024
Portfolio Pulse from Surbhi Jain
Fidelity has identified five materials sector stocks with attractive supply-demand dynamics for 2024, anticipating a sector turnaround. The selected stocks are Freeport-McMoRan Inc (FCX), LyondellBasell Industries NV (LYB), Olin Corp (OLN), Cabot Corp (CBT), and Linde PLC (LIN). These companies are expected to benefit from factors such as copper supply challenges, cost advantages from natural gas usage, and alignment with global energy transition trends.
January 10, 2024 | 5:16 pm
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POSITIVE IMPACT
Cabot Corp's reliance on natural gas offers a competitive advantage, likely leading to increased market presence and sales.
Cabot's competitive cost structure due to its reliance on natural gas is expected to enhance its market presence and sales, which could positively influence its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Freeport-McMoRan, a leading copper supplier, may see a price rally due to global supply challenges, making it an attractive investment.
Freeport-McMoRan's position as a major copper supplier is likely to benefit from the anticipated increase in copper prices due to supply constraints, which could lead to a positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Linde PLC's alignment with energy transition trends, especially in carbon capture, makes it a stable pick in the materials sector.
Linde's focus on long-term contracts and strategic positioning in carbon capture aligns with energy transition trends, which could lead to a stable and positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
LyondellBasell could gain market share and sales growth due to its cost advantages in chemical manufacturing, making it a strong pick.
LyondellBasell's use of natural gas provides a competitive edge over European manufacturers, which could lead to increased market share and sales, positively affecting the stock in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Olin Corp is expected to expand its market and sales due to its natural gas-based cost efficiency, positioning it well for 2024.
Olin's strategic use of natural gas for cost efficiency is likely to drive market expansion and sales growth, which could have a favorable short-term impact on the stock price.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80