Five stocks to watch; Will Boeing fly, McDonalds beef up, Macquarie shine, Computershare & Marathon Oil keep defying Fed-induced bear market
Summary: Our four minute video covers five stocks for you to watch. Could Boeing shares turn around as they expect greater sales from China. Recession-stalwart McDonald’s, delivers stronger than expected sales and sees sales getting beefier later this year. Computershare defies the Fed-induced bear market and rises 22%; will it continue to benefit from higher interest rates as its business typically does. Plus we also cover Macquarie, why its profits beat expectations, and why it could continue to do well if volatility picks up. And why to watch Marathon Oil with oil margins likely to rise amid oil supply tightness.
Here are five stocks to perhaps watch in no particular order
Boeing (BA)Boeing shares have underperformed this year, falling 33%, however, the question is, could its business be turning around? The company released a bullish 20-year forecast for China’s commercial jet market, saying China will need to double its fleet in two decades with Boeing saying China will be a major driver of its sales. Boeing sees China needing almost 8,500 new passenger and freighter planes valued at $1.5 trillion through 2041. So that’s something to think about.
McDonald’s (MCD)Recession-stalwart McDonald’s (MCD) has been outperforming the market his year, as it typically does it tough markets. McDonald’s reported stronger quarterly sales than the market expected, showing its somewhat defying inflationary pressures. McDonald’s put its strong sales down to the McRib burger. With the CEO saying it’s the “the greatest of all time” seller, with the McRib to soon be available across the entire US from the end of this month. That’s something to sink your teeth into.
Macquarie Group (MGQ)
Macquarie Group (MGQ) is Australia’s biggest investment bank and reported profit results that beat market forecasts, with market volatility buoying its commodities and global market trading businesses. Macquarie’s net income for the half year rose to A$2.31 billion up from A$2 billion in the prior year. That also beat forecast, so its shares rose as a result. But here is something to consider; when commodity and market volatility picks up, we typically see financial trading businesses benefit. So, it could be worth keeping an eye on Macquarie.
Computershare (CPU) is a share registry business, which you may heard of if you’ve ever bought or sold shares. You may have received their statements in the mail, for share purchase plans perhaps. Computershare shares have been outperforming the market, they are up 21% this year. Businesses like Computershare also are highly leveraged to rising interest rates, meaning, their earnings typically rise when interest rates do. In 2022, consensus (or the market) upgraded Computershare's 2023 earnings by 42%, but Bloomberg is even more optimistic, expecting more earnings upside.
Marathon Oil (MAR)
Marathon Oil (MAR) is on the best performing stocks in the US this year, trading up 87%. Its due to report financial results in November. It’s also worth noting that our chief commodity strategist Ole Hansen has been expecting oil margins to rise again, given the oil price is moving up, with the oil market in tight supply and worried about the escalating prices of fuel in the northern hemisphere winter. So that means, oil companies like Marathon could continue to gain momentum.
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Q4 Outlook 2022: Winter is coming
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European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.
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