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Economics

Zinc Trends 2021: Prices Rally as Energy Crisis Hits Supply

Click here to read the previous zinc trends article. Zinc prices surged more than 20 percent in 2021, touching their highest level in 14 years in October.The demand rebound after economies around the world lifted restrictions, paired with supply-side…

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Click here to read the previous zinc trends article.

Zinc prices surged more than 20 percent in 2021, touching their highest level in 14 years in October.

The demand rebound after economies around the world lifted restrictions, paired with supply-side concerns over rising power costs, helped the base metal hit a yearly high of US$3,794.50 per tonne.

Here the Investing News Network (INN) looks back at the zinc trends for 2021, from supply and demand dynamics to how the metal performed and what analysts said quarter by quarter.


Zinc trends Q1 2021: Prices kick off on a bright note


Zinc prices started 2021 trading at U$2,775 after posting a more than 18 percent increase in 2020.

Despite falling in the first three months of trading — declining to U$2,539 — zinc prices later rebounded, experiencing volatility throughout the next few months.


zinc price performance, december 2020 to december 2021

At the start of 2021, Dan Smith of Commodity Market Analytics was looking for zinc prices to average US$2,853.

“The market has broadly performed as expected,” he said in July.

As people around the globe began receiving vaccines and economies reopened, a recovery in demand from the steel sector began, with China seeing the most growth. However, construction and steel activity in the Asian country was expected to wane in H2 — a slowdown that was in turn forecast to weigh on global zinc demand.

“Overall, we still see growth, but at a more moderate pace than the robust expansion which took place in many countries in the first half of 2021,” Smith said.

On the supply side, Peruvian zinc output dipped on an annual basis at the outset of 2021, supporting prices.

In March, FocusEconomics analysts predicted that zinc prices would ease from their Q1 levels by the end of 2021, chiefly due to recovering global output, which reportedly fell 6 percent in 2020. “Major mines in South America, especially in Peru, should gradually come back to their pre-pandemic capacity levels, which will likely allow global production growth to more than outpace the recovery in demand this year,” the analysts said at the time.

Zinc trends Q2 2021: Prices break U$3,000 level 


In Q2, the base metal hit its highest point of the first half of 2021, trading at US$3,072.25 on May 28. By the end of June, zinc prices had pulled back, but were still trading north of US$2,900.

“Zinc prices performed much more strongly than we were expecting in H1,” Helen O’Cleary of CRU Group told INN. “Although the concentrates market remained tight, the refined metal market surplus continued to build.”

She continued, “Fundamentals took a back seat and prices were driven higher by stimulus and bullish sentiment.”

By the end of the first half, CRU was expecting zinc demand to continue to recover in H2, driven by strong steel mill orders and infrastructure stimulus, as the metal is used to galvanize steel.

“Global demand will more than recover last year’s losses due to a strong rebound in China, although we do not expect demand in the world ex-China to recover fully until 2022,” O’Cleary said.

In terms of supply, global zinc mine production in 2020 was estimated to be 12 million tonnes, a 6 percent decrease from 2019.

Government-mandated lockdowns and a decrease in zinc prices following the onset of the global COVID-19 pandemic resulted in lower zinc mine production in many countries, particularly in South America.

At the time of the interview, O'Cleary said CRU expected zinc mine output to more than recover 2020’s losses in 2021. “That said, we do not expect the concentrates market to return to surplus until 2022,” O’Cleary said.

Zinc trends Q3 2021: Price rally takes a pause


Zinc prices remained steady throughout the third quarter, hovering around the US$3,000 mark.

“After hitting an over two-year high on 24 September on strong fundamentals, zinc prices started to trend downwards, likely weighed on by signs of waning demand for steel — with galvanizing being zinc’s main end-use,” FocusEconomics analysts said in September. “Global steel production slid for the first time in over a year in August, while strict carbon emission policies in China further dampened demand prospects.”

Zinc demand came back strongly in 2021, especially in Europe, with Wood Mackenzie expecting this to continue into the upcoming year. “The US has seen slower growth, but this is due in part to a smaller drop in demand last year,” Jonathan Leng, the firn principal analyst, said in October. “For the biggest consumer, China, it has seen lower investment in infrastructure, which has contributed to a moderation of demand growth.”

CRU’s O’Cleary agreed, saying demand has rebounded more strongly than expected in Europe and the US, and believed it was set to continue in Q4.

“Some demand weakness materialized in Asia ex-China in recent months due to COVID-19-related restrictions, but Q4 should be stronger as restrictions are eased,” she said. “In China, demand in Q4 will weaken on the back of power restrictions at some end users and the construction sector slowdown.”

Zinc trends Q4 2021: Prices hit 14 year high


During the fourth quarter, zinc prices jumped to hit their highest level in 14 years, supported by soaring power prices and costs associated with carbon emissions.

As a result of increasing costs, zinc smelter Nyrstar (EBR:NYR) outlined plans to cut production by 50 percent at three European operations. The combined capacity of the smelters is around 700,000 tonnes per year.

For O’Cleary of CRU Group, the timeline and extent of cuts are both unclear, but could tip an already tight market into deficit. “Prices are expected to remain elevated, and metal premia for next year’s annual contracts will reach a multi-year high,” she told INN in a conversation back in October.

Overall, global zinc demand recovered well in 2021, and was up by 7 percent following the previous year's 4.8 percent contraction, according to CRU data.

Zinc prices pulled back from their 14 year high as the fourth quarter unfolded, as downbeat purchasing activity in Chinese markets ahead of the winter season exerted downward pressure on prices.

“On top of this, news of the new COVID-19 variant sparked worries of cooling industrial activity, further weighing on prices,” FocusEconomics analysts said in their December report.

“On the supply side, dynamics remained favorable, notably in Europe, as announcements of operation disruptions at Glencore’s mine in Italy and the Tara mine in Ireland put additional pressure on production, which was already strained due to high energy prices,” the analysts said in the document. “This, coupled with low inventory levels, cushioned the overall fall in prices.”

On December 31, zinc prices were trading at US$3,534 — an over 27 percent rise since the start of the year.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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Economics

Top Trending Stocks to Buy Today

A few companies have started the season off strong. Let’s examine the top trending stocks investors are excited about.
The post Top Trending Stocks to Buy Today appeared first on Investment U.

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There is a ton of uncertainty in the investing world right now. First, new COVID-19 strains have turned into an ever-present threat to the entire economy. Second, many companies are still struggling with supply chain issues. Finally, analysts expect interest rates to rise at any minute. However, despite all of this turmoil, a few companies have started the season off strong. This is much-needed good news for investors. Let’s examine a few of these top trending stocks and see why investors are excited about them.

NOTE: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

What Creates Top Trending Stocks?

When you hear the word “trending”, most people think of a viral social media post. These are posts that everyone is talking about and sharing with each other. Honestly, trending stocks are not that different.

There are tons of factors that could lead to a stock starting to trend. Stocks can also trend for both good and bad reasons. For example, a stock might start trending in a good way because it announced a brand new service (Walt Disney Company and Disney Plus). A stock could also start trending in a bad way because of a CEO scandal (Activision and Bobby Kotick). A stock could even start trending for reasons that have nothing to do with the company (i.e. The GameStop Short Squeeze).

The most important thing is to figure out why a stock is trending, whether the news is good or bad, and how to react to it.

For this article, I’ve focused on stocks that recently crushed their Q4 2021 earnings reports. These stocks are all trending because they are performing better than investors expected them to. Let’s take a look.

No. 4 Levi Strauss & Co. (NYSE: LEVI)

Levi’s was founded in 1853. When things are looking bleak, it’s a good idea to invest in companies that have been around since 1853. They have a very proven ability to overcome tough times.

Apparently, even after 169 years, Levi’s are still in. In Q4 2021, Levi’s posted multi-decade records for revenue and profitability. Chip Bergh, President & CEO, attributed this success to a few factors. First, he praised Levi’s strong brand equity. This allows it to maintain pricing control and refrain from discounting too heavily. He also mentioned that Levi’s is expanding its direct-to-consumer business. This DTC division has much higher margins than Levi’s traditional business. It has helped to increase Levi’s profitability.

For Q4 2021, Levi’s reported revenue of $1.7 billion. This was up 22% from 2020 and 7% from 2019. Levi’s also beat both its earnings per share (EPS) expectations (2.43%) and revenue expectations (0.32%).

In more good news, Levi’s set super high growth expectations for 2022. It forecasted growth of 11-13% for next year. Chip even went so far as to say, “As good as this past year has been, I’m confident the future will be even better.”

In even more good news, Levi’s increased its dividend. This is usually the ultimate sign of security for investors. It shows that the business has so much money that it can afford to pay some back to investors. In total, Levi’s paid out $104.4 million in dividends during 2021.

No. 3 Tesla (Nasdaq: TSLA)

Tesla is rarely not one of the top trending stocks. Usually, Tesla only trends because of Elon Musk and his antics. This time around, however, Tesla is trending because of very substantial news. Namely, it crushed its earnings report.

Of all industries, electric vehicles were one of the hardest hit by supply chain issues. There are so many pieces (literally) that go into building a car. These pieces are sourced from all over the globe. This leads to a massive supply chain. Additionally, the average EV uses 2,000 processing chips. This means that the EV industry also had to battle the ongoing global chip shortage. A little surprisingly, Tesla was able to navigate these issues with no problem.

In Q4 2021, Tesla produced 305,000 vehicles. It also delivered 308,000 vehicles in Q4 and 936,000 for the year. This resulted in $17.72 billion in Q4 revenue. This was enough to beat both its revenue expectations (6.49%) and EPS expectations (6.88%). In total, Tesla reported a yearly gross profit of $4.8 billion. This was a 135% year-over-year (YOY) increase.

Interestingly, Elon Musk spent a good portion of the earnings call not discussing electric cars. Instead, his focus on was a new humanoid robot called Tesla Bot. Musk described Tesla Bot as, “the most important product that Tesla is developing this year.” He sees it as a potential answer to the current labor shortage.

No. 2 ServiceNow (NYSE: NOW)

ServiceNow is a cloud computing company. It focuses on managing workflows for IT, employees, creators, and customers. Essentially, ServiceNow creates digital experiences to make life easier for your company. Out of all of the top trending stocks, ServiceNow is the most relieving. Let me explain…

In recent months, the technology sector has been beaten down. Badly. It’s been the toughest stretch for tech stocks since the 2008 Financial  Crisis. Many once-popular names like Peloton, Roku, and Fiverr are down 70% or more from their all-time high. This is the case for most Nasdaq. This is why ServiceNow’s earnings report was so critical. ServiceNow sells critical software for businesses. It also works with 80% of the companies in the Fortune 500. If ServiceNow’s business was slowing down, it could be a very bad sign for the economy overall. Luckily, that wasn’t the case.

In Q4 2021, ServiceNow reported revenue of $1.5 billion. This was a 29% increase from 2020. It was also enough to beat both its revenue expectations (2.1%) and EPS expectations (0.59%). The management team at ServiceNow also expects this growth to continue into 2022. They’ve forecasted revenue growth of 26% for 2022.

This earnings beat came at the perfect time. ServiceNow is one of just a few tech stocks that has notched any green days at all lately.

Top Trending Stocks No. 1 Intel (Nasdaq: INTC)

Intel falls into a very similar category as ServiceNow. It is one of the world’s largest companies and sells a wide variety of different business solutions. Due to this, a slowdown in Intel’s business can be viewed as a bad sign for the overall economy. Luckily, Intel also just recently beat earnings. It also helps us round out this list of top trending stocks.

Intel reported Q4 revenue of $19.45 billion. This was enough to beat both revenue expectations (6.4%) and EPS expectations (19.75%). Notably, Intel trades at a price-to-earnings ratio of under 10 right now. This means that it is valued incredibly cheaply for the amount of money it makes. Most companies of Intel’s size trade at P/E ratios of closer to 20 or 30.

One reason why Intel is trading so cheaply might be due to investor uncertainty. Intel recently got a new CEO (Pat Gelsinger) in February 2021. He is currently investing heavily to help Intel increase its production capacity. The company plans to present more detailed plans on February 17, 2022. To read more on Intel, check out my Intel stock forecast.

I hope that you’ve found this article valuable in learning a few of the top trending stocks to buy. Please base all investment decisions on your own due diligence.

The post Top Trending Stocks to Buy Today appeared first on Investment U.

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Spread & Containment

Best Penny Stocks to Buy Next Month? Check These 3 Out

Can these penny stocks push up next month?
The post Best Penny Stocks to Buy Next Month? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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3 Penny Stocks to Add to Your Watchlist in February 2022 

With February only a few days away, trading penny stocks remains extremely popular. Now, to make money with penny stocks in 2022, investors need to have a thorough understanding of what is going on in the stock market. Right now, the most pressing factors include Covid, inflation, the Fed monetary policy, and certain geopolitical tensions. And because penny stocks are so speculative, these factors all have a major and material effect on how they trade. 

[Read More] Why These 3 Penny Stocks Are Exploding Today

So, when you’re making a penny stocks trading strategy, having all of these in mind will help immensely. And, your strategy should also be able to adapt to the ever changing conditions of the stock market. As we all know, trading penny stocks in 2022 is not easy. And in the past week or so, the market has been in a major downtrend. But, with a lot to look forward to regarding the future, investors are excited about the next few months. With all of that in mind, let’s take a look at three penny stocks to add to your watchlist in February 2022. 

3 Penny Stocks to Watch in February 2022 

  1. Gingko Bioworks Holdings Inc. (NYSE: DNA
  2. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP
  3. Root Inc. (NASDAQ: ROOT

Gingko Bioworks Holdings Inc. (NYSE: DNA) 

Today, shares of DNA stock managed to climb by almost 7% at midday. While many large gains like this occur without news, there are a few reasons why DNA stock is climbing right now. Today, Bank of America Securities announced coverage of Gingko Bioworks, initiating a Buy rating and an $8 price target.

While price targets are simply that, they are still crucial for investors to consider. This seems to be the main reason that DNA stock is climbing right now. However, the company did make an exciting announcement a week or so ago. On January 19th, Gingko announced the acquisition of Project Beacon Covid-19 LLC. This is a Boston-based social organization that is working on increasing the availability of Covid testing in Massachusetts. 

“As we embark on a new wave of the pandemic and grapple with the spread of the Omicron variant, large-scale testing will be critical to help keep kids in schools and mitigate the spread of COVID-19. ntegrating Project Beacon’s capabilities with our Concentric by Ginkgo offering will enable us to further empower communities in Massachusetts and beyond with the tools they need to make important public health decisions.”

The Chief Commercial Officer of Gingko, Matt McKnight,

This is very exciting news, and any company involved in treating, diagnosing, or curing Covid-19, has come into the public eye in the past few months. So, with that in mind, will DNA stock make your list of penny stocks to watch?

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) 

Today, shares of SHIP stock managed to climb by almost 12% at midday. It’s tough to say why SHIP stock is moving so heavily right now, but, it did make an exciting announcement on January 24th. On Monday, the company stated that it expects its Q4 TCE (time charter equivalent) to exceed $36,000 per ship per day. This is above the previous guidance of $35,200 per ship per day. 

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.” 

The CEO and Chairman of Seanergy, Stamatis Tsantanis

This is great news and could be the reason that SHIP stock is moving right now. In the past five days, shares have climbed by around 16%, which is no small feat. Considering all of this, will SHIP stock be on your penny stocks watchlist next month?

Penny_Stocks_to_Watch_Seanergy

Root Inc. (NASDAQ: ROOT) 

Another sizable gainer of the day is ROOT stock, which shot up by over 15%. Before we get into why, it’s important to understand what Root Inc. does. The company is a provider of insurance, revolutionizing the industry through data science and technology.

[Read More] 5 Top Penny Stocks To Buy Under $5 Right Now

It works to provide customers with a personalized and fair experience in modern insurance. The big news for the company came today when it announced a new term loan facility with BlackRock Financial Management Inc. The deal, with $300 million, will provide the company with ample credit to move forward with certain operations. 

“We are pleased with the successful execution of this new term facility. It accomplished several important objectives including extending our debt maturity and further enhancing our liquidity position with a partner focused on the long-term success of Root.

We are executing on a disciplined strategy to create enduring value through strong underwriting results, the development of our embedded product, and prudent capital management.”

The CEO and Co-Founder of Root, Alex Timm

Specifically, this deal with carry an interest rate of around 9% and includes an issuance of warrants from Root to Blackrock equal to 2% of issued and outstanding shares. This includes an exercise price of $9 per share. This is exciting news for the company and should help to stimulate growth for it in the short and long term. Considering that, will ROOT be on your buy list in February or not?

Penny_Stocks_to_Watch_Root

Which Penny Stocks Are You Watching Right Now?

If you’re looking for the best penny stocks to buy, there are hundreds to choose from. While it can be complicated given the sheer number of penny stocks out there, with research on hand, it is much easier than previously imagined. 

[Read More] Investing in Top Penny Stocks: Why, When, and How?

Now, to find the best penny stocks to buy, investors need to know exactly what is going on in the stock market and how to take advantage. This involves looking at the news, understanding how it may affect different industries and considering the future. With all of that in mind, which penny stocks are you watching right now?


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The post Best Penny Stocks to Buy Next Month? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Economics

Is it too late to buy Visa after shares jumped 9.0% on record revenue?

Wedgewood Partners’ CIO says Visa Inc (NYSE: V) is a promising reopening stock a day after the financial services company reported record revenue for its fiscal first quarter. Rolfe’s bull case for Visa Inc Visa reported a 40% YoY increase in its…

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Wedgewood Partners’ CIO says Visa Inc (NYSE: V) is a promising reopening stock a day after the financial services company reported record revenue for its fiscal first quarter.

Rolfe’s bull case for Visa Inc

Visa reported a 40% YoY increase in its quarterly cross-border volume last night that David Rolfe sees as a positive catalyst for the stock. This afternoon on CNBC’s “TechCheck”, he said:

Now that the world is opening up post-COVID-19 pandemic, the all-important cross-border revenues are coming back. On top of it, it’s a stock that’s trading at 28 times this year’s earnings and about 24 times 2023. Probably one of the most dominant business models in the world.

His outlook is similar to Gradient Investments’ Jeremy Bryan, who also expects 2022 to be a great year for Visa. The stock jumped nearly 10% this morning and wiped its entire year-to-date loss. A double-digit single-day gain is fairly unusual for Visa; seen last in April 2020.

Fintech startups are not a threat for Visa

The chief investment officer does not see the rise of fintech solutions as a threat for Visa, which is now a sizable position for his investment management company. He added:

The narrative that Visa is going to lose market share versus some of these startup fintech companies just isn’t the case. These companies are partners; they ride on Visa’s rails. Square, PayPal, Coinbase, Strip; they are all partners.

Rolfe agreed the stock was a bit on the pricier side last year, but said it’s not anymore. “V” traded at a high of about $250 in July 2021 versus $222 at present. According to Rolfe, Wedgewood Partners has been loading up on “V” in recent weeks.

La notizia Is it too late to buy Visa after shares jumped 9.0% on record revenue? era stato segnalata su Invezz.

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