Tag: MarketClub Tips & Talk

Don't Fall Victim to These 2 EV Stocks

Posted on by The MarketClub Team

With increasing climate change concerns, rising costs of fossil fuels due to geo-political turbulence and ever-depleting supplies, and growing inclination toward lower operational and maintenance costs, the global automotive industry is fast transitioning toward e-mobility.

Including electric vehicles, charging networks, infrastructure, and energy storage, the global electric mobility ecosystem is projected to grow at 23.7% CAGR between 2022 and 2029. The following chart illustrates the key milestones in the impressive growth trajectory of electric vehicles.

EV Sales Milestones

Source: wri.org

While high input and borrowing costs amid record-high inflation and an increasing interest rate environment impeding the EV industry’s growth, EVs are expected to keep replacing Internal combustion engine vehicles at an increasing rate each year.

How soon do you expect 25% of vehicles on the road to be electric?

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However, since the EV industry is expected to bear the brunt of the macroeconomic headwinds in the near term, investors are advised to exercise caution and not to bottom fish NIO Inc. (NIO) and Blink Charging Co. (BLNK), as some technical indicators point to further downside in these stocks. Continue reading "Don't Fall Victim to These 2 EV Stocks" →

One Stock You Could Buy and Hold Forever

Posted on by The MarketClub Team

Healthcare is one of the few sectors that enjoy inelastic demand and can easily pass on an increase in cost to consumers. Therefore, healthcare stocks are attracting investor attention amid the current economic uncertainties.

However, the persistently high inflation is raising healthcare expenditures, and many Americans still remain uninsured or inadequately covered. This could drive the demand for health insurance.

Insurance Coverage Status

Source: www.commonwealthfund.org

The U.S. health insurance market is expected to grow at a CAGR of roughly 10.1% to $846.34 billion by 2027.

Do you think the Fed’s control over inflation can ease healthcare affordability challenges?

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Given the sector’s resilience and long-term growth prospects, one could consider investing in shares of health and well-being company Humana Inc. (HUM), given its potential to deliver solid returns. Continue reading "One Stock You Could Buy and Hold Forever" →

3 Energy Stocks for the Rest of 2022

Posted on by The MarketClub Team

While the U.S. economy grew at a 2.6% annual rate in the third quarter, high inflation, weak third-quarter corporate earnings, and fears of another aggressive rate hike by the Fed are raising the possibility of a recession in the next 12 months.

With investors anticipating a broad slowdown, this year could be the worst year for the stock market since the 2008 financial crisis.

However, a corresponding slowdown in the energy demand can be safely ruled out due to supply-side constraints caused by the conflict between Russia and Ukraine and OPEC+’s decision to cut oil production by 2 million barrels/day.

How soon do you think Brent crude will return to $100 per barrel?

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According to the short-term energy outlook released by the U.S Energy Information Administration, the U.S. residential price of electricity will average 14.9 cents per kilowatt hour in 2022, up 8% from 2021. Higher retail electricity prices largely reflect an increase in wholesale power prices, driven by higher natural gas prices.

US electricity generation by source

Source: www.eia.gov

Besides, energy demand is expected to grow in the long run due to increased economic activity and the effects of climate change. The global energy as a service market is projected to grow at a 7.6% CAGR to reach $112.7 billion by 2030.

Hence, it would be opportune to load up on energy stocks ConocoPhillips (COP), Murphy Oil Corporation (MUR), and Tidewater Inc. (TDW) as some technical indicators point to their upside. Continue reading "3 Energy Stocks for the Rest of 2022" →

Chart Spotlight: Dollar General (DG)

Posted on by Ian Cooper

Investors may want to keep an eye on discount retailers, like Dollar General (DG).

For one, the latest pullback may be a great buy opportunity.

If you take a look at this chart, you’ll notice that Williams’ %R, Fast Stochastics, and RSI are all starting to pivot well off oversold conditions. With patience, I’d like to see the Dollar General stock retest $260 resistance, near-term from $241.65 support.

DG Chart With Trade Triangles

Source: MarketClub

Two, while other major retailers take a hit with inflation, Dollar General is rising because of inflation. In fact, we can see that with the company’s recent earnings report.
 
Not only did Dollar General report second quarter EPS of $2.98, which was better than the expected $2.94 a share, sales were up to $9.4 billion, same-store sales were up 4.6% as compared to expectations for 3.9%. The company even increased its same-store sales forecast to a range of 4% to 4.5% for the fiscal year, from a prior call for 3% to 3.5%.

Three, wealthier people are now shopping at dollar stores because of inflation.

According to Business Insider, Todd Vasos, CEO of Dollar General, said on a call with analysts that the store saw a rise in higher-income households shopping there, "which we believe reflects more consumers choosing Dollar General as they seek value." Continue reading "Chart Spotlight: Dollar General (DG)" →

Chart Spotlight: ChargePoint Holdings Inc. (CHPT)

Posted on by Ian Cooper

With demand for electric vehicles on the run, investors may want to keep an eye on charging stocks, like ChargePoint Holdings (CHPT).

Remember, not only do global leaders want millions of EVs on the road, California is about to prohibit the sale of gas-powered cars.

“The rule, issued by the California Air Resources Board, will require that 100 percent of all new cars sold in the state by 2035 be free of the fossil fuel emissions chiefly responsible for warming the planet, up from 12 percent today. It sets interim targets requiring that 35 percent of new passenger vehicles sold in the state by 2026 produce zero emissions. That would climb to 68 percent by 2030,” according to The New York Times.

For that to become a reality, we need EV charging stations – lots of them.

In fact, the Biden Administration already announced that all 50 U.S. states, Washington, D.C., and Puerto Rico have all submitted plans for a national EV charging network.

“These plans are required to unlock the first round of the $5 billion of Bipartisan Infrastructure Law formula funding available over 5 years to help states accelerate the important work of building out the national EV charging network and making electric vehicle charging accessible to all Americans,” according to the U.S. Department of Transportation.

ChargePoint Holdings Stock Technically Oversold

It's all part of the reason why oversold shares of CHPT are starting to pivot higher. All after pulling back from about $19 to $14 thanks to a broad market pullback. Even better, the stock is oversold on Williams’ %R, Fast Stochastics, and RSI.

CHPT Chart With Trade Triangles

Source: MarketClub

Continue reading "Chart Spotlight: ChargePoint Holdings Inc. (CHPT)" →