Monday’s Stock Market Tips!

| January 12, 2015 | 0 Comments

Analyst ActionAnalyst Action: Stock Market Tips From Wall Street’s Best!

It’s Monday, and that means it’s time for a look at compelling analyst upgrades and downgrades.

In case you’re unaware, analysts at the biggest banks and investment firms on Wall Street provide research on a multitude of natural resource companies. It’s not always the case, but most times a notable bullish change in a respected analyst’s outlook can have a significant influence on a company’s share price.

Of course, their ratings changes aren’t always positive…

When an analyst applies a big downgrade, shares can lose ground quickly.

After all, it’s not a great idea to be fully invested in a company that’s falling out of favor with Wall Street. At the very least, a downgrade can slow buying activity, which opens the door to lower prices.

Either way, it’s important to keep an eye on the analyst activity. Doing so can give you a substantial leg up on the market.

Here are a few natural resource company ratings changes from the past few weeks that really caught my eye… 

Halliburton (HAL)- This international oil services heavyweight has been hit hard over the past six months. Shares are down 46% from the 52-week high set in July 2014. But analysts at RBC Capital think now’s the time to buy. On December 30th, the firm upgraded HAL from “Sector Perform” to “Outperform”.

Newfield Exploration (NFX)- Analysts at Oppenheimer initiated coverage on this US oil and gas producer on December 15th with an “outperform” rating. While Oppenheimer didn’t provide a price target, JP Morgan, Barclays, and Deutsche Bank believe NFX shares should be trading anywhere from $29 to $34. All these firms have a “buy” rating on NFX as well.

Since NFX is currently trading near 52-week lows at $23, these price targets represent upside profit potential of at least 25%.

Southwestern Energy (SWN)- This Goliath of US natural gas production was upgraded from “equal weight” to “overweight” at Capital One Financial on December 30th. The firm slapped a $41 price target on SWN, which is an 80% premium to current prices. While Capital One may see value in SWN, I recommend waiting until the stock eases from its relentless downtrend before purchasing.

Gulfport Energy (GPOR)- Without question, GPOR has had its fair share of troubles over the past year. Shares of the US and Canadian energy producer are down nearly 50% from the 52-week high set in April 2014.

Despite the volatility in oil and natural gas pricing, analysts at Topeka Capital Markets believe GPOR will eventually be trading at $58. The firm initiated GPOR with a “buy” rating on December 29th. With shares trading in the $38 area, Topeka’s price target represents 52% profit potential.

Markwest Energy Partners L.P. (MWE)- Even the oil and gas pipeline operators haven’t been able to avoid the bearishness associated with falling crude prices. Shares of most providers are down heavily the past few months.

But the downturn didn’t keep analysts at Stephens from upgrading MWE from “equal weight” to “overweight” last week. The firm sees shares of the pipeline and processing provider trading at $81, which is a 35% premium to current prices. It’s important to note MWE currently pays a 5% dividend.

There you have it…

What you see above are the most captivating, and potentially profitable, ratings changes I came across over the past few days. Shares prices may already be reacting to the ratings and price target adjustments.

Be Careful With Stock Market Tips…

Even though these “stock market tips” are coming from the best analysts on Wall Street, you still have to be careful. Just because an analyst has a bullish view on a company doesn’t mean you should dump all your money into the company’s stock.

Do your own due diligence and always use correct position sizing and risk control measures in your trades! 

Until Next Time,

Justin Bennett
Commodity Trading Research

BIO: Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com. With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them. Sign up for our free reports and commodity newsletter at https://commoditytradingresearch.com/free-sign-up.

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Category: Natural Resource Stocks

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.