B-21 stealth bomber

Chevron and Merck top five stocks showing strength in a bad market

Your stocks to watch for the week include five companies that are still doing well as the broader market falls: Dow Jones giants Chevron (CLC) and with Merck (MRK), with the defense contractor Northrop Grumman (NOC), fertilizer giant Mosaic (MOS) and lithium producer Livent (LTHM).




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Markets tumbled as investors try to gauge the impacts of rising interest rates and inflation. But some of those stocks, like Northrop, Mosaic and Chevron, held up in the wake of Russia’s invasion of Ukraine, which boosted commodity prices and raised expectations for defense spending.

Still, with the market in correction and the Nasdaq in a bear market, investors should be cautious about buying stocks.

Northrop Grumman Stock

Northrop Grumman stock rose 0.4% to 468.70 in trading on Friday, up 6.7% for the week. The shares were in a cup-and-handle basis with a buy point of 477.36.

NOC stock bounced off its 50-day line earlier in the week. Investors could use a move above Thursday’s high of 470.23 as an early entry from the 50-day and trendline.

The stock’s relative strength line is at an almost two-year high on a weekly chart.

The company, which makes the B-2 stealth bomber and other aerospace weapons and systems, reported mixed first-quarter results last month.

General dynamics (GD), another defense contractor, was Thursday’s stock of the day. Lockheed Martin (LMT) was also a recent action of the day.

“The world has clearly changed with Russia’s invasion of Ukraine,” Lockheed CEO James Taiclet said during the company’s earnings call last month.

“A major world power has crossed a recognized international border to seize territory by force and, therefore, the value of a strong deterrent to war as an instrument of a nation’s geopolitical strategy hasn’t been this big since the middle of the 20th century,” he said. continued.

Like the other stocks to watch here, Northrop Grumman has a strong composite rating. Its composite index is 90. Its EPS index is 68.

mosaic stock

Mosaic stock fell 1% to 64.07 on Friday, just below its 50-day line. It is even further below its 10-week line. Thus, a break below the recent lows could offer a sell signal, while a strong bounce could offer a buy signal.

MOS stock rose 2.6% for the week.

Demand for crops from China and a spike in the price of natural gas — a major input for making nitrogen fertilizer that spiked after the Russian invasion — drove fertilizer prices up. Natural gas prices are much higher in Europe, giving US-based nitrogen fertilizer manufacturers an advantage. In addition, some countries have restricted exports of plant nutrients in a bid to protect their own crops and food supplies, amid concerns about shortages.

Mosaic reported mixed first-quarter results last week, although profits jumped 323%. But the company, which produces phosphate and potash fertilisers, said export restrictions and sanctions, as well as disruptions to agriculture and supply due to the war, would lead to increased demand for supplies. lower in crops and fertilizers.

“Rising crop prices, combined with supply constraints from the global fertilizer industry, have driven nutrient prices higher,” CEO Joc O’Rourke said on the company’s earnings call. “In the case of potash, sanctions against Belarus and uncertainty surrounding Russian exports are impacting supply. World prices have risen as buyers seek to secure adequate volumes.

“The global phosphate market has also priced in uncertainty around Russian supply of finished products and imports like ammonia and sulfur, although today we are seeing some movement in Russian phosphates,” he said. he continued.

Mosaic stock has a composite rating of 99. Its EPS rating is 79.

Herringbone stock

Chevron stock jumped 9% for the week to 170.78, rebounding above its 50-day line. The shares were in a flat base with a buy point of 174.86. Investors could buy CVX shares now on the 50-day line.

The stock has the best possible composite rating of 99. Its EPS index is 77.

Chevron extracts oil from the earth and also operates refineries that turn it into gasoline and other materials. Rising oil and natural gas prices led to a huge surge in profits and sales in the first quarter for Chevron, whose results were released last month. Refining margins are huge, especially for diesel fuel, giving integrated giants like Chevron a big boost.

However, Chevron’s earnings per share fell short of expectations. Even if prices rise, the company said it expects production to decline in the second quarter.

The oil and gas sector has been the market leader in recent months. Rival oil major Exxon Mobil (XOM) is in a buy zone.

Merck Stock

Merck stock, which rose 0.45% to 88.41 on Friday, is in a cup with a handle base with a buy point of 89.58. The RS line is just below a 52-week high.

As with the other stocks to watch here, it has a composite rating in the 90s. That rating is 98. Its EPS rating is also strong, at 93.

The stock jumped after its profits at the end of last month, briefly surpassing the buy point. Merck’s Covid pill helped improve results.

Merck stock is on SwingTrader.

Live stock

Livent stock fell 0.4% to 28.02 on Friday, but soared 31% for the week. The shares were in a cut basis with a buy point of 33.14.

Shares of the lithium-based maker surged this week on earnings and strong guidance. Prices for lithium materials used in electric vehicles have risen as the supply of these products remains limited. The company said it expects prices to remain at similar levels for the rest of the year.

The stock’s upside move put it above a trendline and, briefly, above short-term resistance at 28.32. In a better market, the stock might be more exploitable. But investors could also wait for LTHM shares to form a handle, consolidating gains and offering a lower buy point.

The stock Livent has a composite rating of 98 and an EPS rating of 74.

lithium giant Albemarle (ALB) also reported booming earnings and raised its forecast last week, giving ALB stock a similar boost.

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