3 stocks lead to Omicron’s rebound – News Couple

3 stocks lead to Omicron’s rebound

You are reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on MarketBeat

If investors have learned one thing since the pandemic began, it is to buy dips. The big plunge in the stock market last year and every slight drop since then was an opportunity to gain some “committed to the recovery” stocks. The latest market recovery may be the most likely for the group.

Contributor to Depositphotos.com / Depositphotos.com – MarketBeat

A week ago, concerns about the spread of the Omicron variant caused a sudden reversal in the S&P 500 as volatility returned with a vengeance. Fast forward to this week and relief from virus fears and fears of an earlier-than-expected Fed action suddenly put stock markets in party mode. During Tuesday, the S&P rose nearly 200 points, or 4.3%, from Dec. 3research and development Low in a stunning reflection of fortunes.

The rally was widespread with economically sensitive names and reopening plays leading the way. With Friday morning’s inflation reading looming, it remains to be seen whether investors will stay in the holiday spirit. But for now, these are the three stocks driving the S&P sleigh higher in a potential boost to another record high.

What is the best performing stock this week?

Norwegian Cruise Line (NYSE: NCLH) The stock is up 10% in the first two trading days of the week, the best performer among the S&P 500 components. Since rising to $34.49 in March 2021, the cruise liner operator has faced persistent concerns about the impact of the pandemic — and Omicron’s developments haven’t helped matters.

But with gains seemingly outweighing losses compared to most stocks, Norwegian has been a popular way to play this week’s reopening theme. Not even reports that 10 Norwegian crew members and guests tested positive for Omicron could deter investors from buying. Instead, the news that the alternative, although more portable, has less harmful health effects, caused a sigh of rise in shares of cruise lines and all things that travel.

The Norwegian still needs to work if she is going to sail anywhere near the pre-pandemic peak near $60. Not only do the travel restrictions need to be rolled back, the company’s financial statements need major improvements to attract big institutional money. Pending the developments of the pandemic there may be smoother waters in the future, but in the near term we expect Norwegian trade to remain volatile reopened mainly by retailers.

Why is MarketAxess stock soaring?

MarketAxess (NASDAQ: MKTX) It is quietly the second best performer so far in the still-nascent Omicron rebound, up 9% since Friday. Regardless of the trading platform provider’s general association with bullish capital markets, the stock got a boost from a bullish report from Rosenblatt Securities over the weekend. The analyst there reiterated the buy rating and set a $505 target price, implying a 45% rise from Friday’s close. Investors have noticed MarketAxess shares rising 4% and 5% on consecutive days.

The stock also got a boost from news that European liquidity provider Flow Traders is offering its services to the MarketAxess platform for a range of fixed income asset classes including high-yield US bonds. The transaction will expand the company’s relationship with Flow Traders and add additional liquidity and transparency to the Market Axess global network of institutional investors. As of the end of the third quarter, more than $2 trillion of global bond notes were traded on MarketAxess.

Is Diamondback’s energy undervalued?

Diamondback Energy (NASDAQ:FANG) He made a strong start this week, up 9% through Tuesday. This is because Omicron’s concerns led to a significant rally in the price of West Texas Intermediate crude oil, which rose from $66.26 on Friday to nearly $72. Oil producers enjoyed a similar rally, with higher experimental names such as Diamondback benefiting.

The fuel addition, up 139% year-to-date, was positive comment from sell-side research firm Trust Financial on Monday. The analyst bumped his $2 target price to $150. It also reiterated its buy rating, praising Diamondback’s moderate spending levels and low-cost production. The company’s cash operating costs in the fourth quarter were $9.97 per barrel of oil equivalent (BOE), confirming its position as one of the highest marginal oil producers in the Permian Basin.

Diamondback’s previous financial health made peer a popular way to play the energy market’s recovery this year. As of the end of the third quarter, it had a cash position of $457 million and a manageable debt-to-equity ratio of 36%. As the company continues to generate strong cash flow in a rising oil environment, it indicated that there are plans to distribute half of the cash flow to shareholders in the form of dividends and buybacks. Despite skyrocketing in 2021, Diamondback’s 7-fold profit next year is still one of the biggest values ​​in the high-volume energy sector.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button