|Bid||70.40 x 1100|
|Ask||70.59 x 800|
|Day's Range||69.32 - 71.49|
|52 Week Range||32.00 - 71.49|
|Beta (5Y Monthly)||1.91|
|PE Ratio (TTM)||14.91|
|Earnings Date||Apr 15, 2021|
|Forward Dividend & Yield||2.04 (2.96%)|
|Ex-Dividend Date||Jan 29, 2021|
|1y Target Est||79.50|
(Bloomberg) -- Oil traded near $61 a barrel as investors waited for the outcome of a critical OPEC+ policy meeting later Thursday with no clear steer on how much supply the cartel will return to a fast-tightening market.West Texas Intermediate fell 0.3% after rising 2.6% Wednesday, when prices got a lift from a record drop in U.S. fuel inventories. Group leaders Saudi Arabia and Russia held talks Wednesday seeking common ground on output as Riyadh urges caution but Moscow seeks to raise supply, according to a delegate.Crude has surged this year after the Organization of Petroleum Exporting Countries and its allies slashed collective output to drive a rebalancing of the pandemic-roiled market. The aggressive supply management has helped to drain inventories, while worldwide demand recovers with the roll-out of vaccines. That’s spurred widespread expectations that the single largest actor in the global energy market will now loosen the taps.See also: OPEC+ Silence Has Oil Market Second-Guessing Next MoveVeteran OPEC-watchers still expect some extra barrels from the group, and there’s little chance output will be held at current levels. There are two elements to its debate: first, will the cartel proceed with a 500,000 barrel-a-day collective output hike in April? And second, how will Saudi Arabia phase out the extra cut of 1 million barrels a day it’s been making voluntarily?Heading into the meeting, traders will be mindful that Saudi Arabia has developed a liking for bullish surprises. Energy Minister Prince Abdulaziz bin Salman triggered a surge in prices at the January session by springing a unilateral production cut on an unsuspecting market. Citigroup Inc. has advised its clients not to make bets on this OPEC meeting as “there are too many wildcards,” according to Ed Morse, global head of commodities research.Russian Deputy Prime Minister Alexander Novak outlined his position on Wednesday, saying that while there are many risks including lockdowns, “if we look at the situation, it is much better than a year ago, than in the autumn.”The backdrop to the upcoming gathering is a steady procession of indicators that oil consumption is on the mend. Among recent figures, data showed U.S. commutes are slowly returning to normal as states reopen, while the rate at which people are staying home fell to the lowest since Nov. 12.U.S. government figures on Wednesday showed gasoline inventories sank 13.6 million barrels to 243 million barrels last week after a freeze disrupted the refining sector. At the same time, holdings of crude oil expanded. Brent’s prompt timespread eased to 50 cents a barrel in backwardation on Wednesday. While that remains a bullish pattern -- with near-dated pries above those further out -- it is the lowest reading since Feb. 11.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Inflation worries are picking up, and the stock market is down in consequence. Inflation-sensitive stocks, especially the tech giants, have slipped in recent trading sessions, as government bond yields ticked higher. Unsurprisingly, the factors behind the inflation worries are directly related to the pandemic situation. There’s the massive fiscal stimulus of the legislative COVID relief packages, that are helping to fuel that inflationary pressure, but there is also the ongoing vaccination program that continues to reach more than 1 million people per day, and holds out the promise of a return to more normal conditions. So the question now is, what should investors do? For the near-term, at least, the chance of inflation outweighs the positive news about the receding COVID epidemic is real. With that in mind, Wall Street pros advise looking at ‘inflation-resilient’ sectors. Using the TipRanks database, we identified two stocks that, according to top-rated analysts, could potentially gain should inflation take hold. In fact, both have received overwhelmingly bullish praise from the Street, enough to earn a “Strong Buy” analyst consensus. Applied Materials (AMAT) We’ll start with a producer of technological goods, Applied Materials. Like any manufacturer, Applied Materials can survive in an inflationary environment; as the cost of raw materials rises, the company will pass those on to its own customers through higher prices on finished products. No one likes that, but the company’s products are essential in the tech industry. Applied Materials makes integrated circuit chips for electronic devices; flat panel displays used in TVs, computer monitors, smartphones, and tablets; and coatings for flexible electronics. AMAT brings in over $17 billion in annual revenue, has over 14,000 patents, and puts more than $2.2 billion annually into R&D work. In its recent quarterly report, for fiscal 1Q21, Applied Materials reported a top line of $5.1 billion, up 24% from the prior year, and earnings of $1.22 per share. EPS was flat sequentially, but up 27% year-over-year. These results came in as the company’s stock has registered strong gains. AMAT shares are up 101% in the past 12 months, far outpacing the broader markets. The gains reflect increased demand for the company’s products due to the increase in telecommuting, virtual offices, and remote schooling. In his note on Applied Materials, B. Riley’s 5-star analyst Craig Ellis takes an upbeat stance. “We believe takeaways affirm a bullish thesis and suspect Street FY21&22 EPS will move materially higher despite retaining sizeable IT/LT upside… Semi’s sales led 1Q’s upside though all segments exceeded our forecast, and we believe robust strength will persist deep into CY21… AMAT’s $70B+ CY21 industry view surprise higher, surpassing close peers… directionally pointing to our +$72-$74B view,” Ellis noted. To this end, Ellis rates the stock a Buy, and his $150 price target implies a 30% upside potential for the coming year. (To watch Ellis’ track record, click here) Overall, there are 22 recent reviews on Applied Materials, and no fewer than 19 are to Buy. The remainder are Holds; the analyst consensus view on the shares is a Strong Buy. AMAT is priced at $115.44 and the $133.95 average price target suggests 16% upside from that level. (See AMAT stock analysis on TipRanks) Citigroup (C) Next up, Citigroup, is of the US’ Big Four banking institutions. For banks like Citi, which are net lenders, inflation’s tendency to push up interest rates is a boon. Long term, higher rates will increase loan profitability faster than inflation will eat away at repayments. In that environment, the banking sector could outperform the S&P 500 over the long term, should inflationary tendencies drive up key interest rates. In the meantime, a look at Citi’s current situation shows that revenues and earnings are still down year-over-year, although EPS has shown strong sequential gains. In 4Q20, the bank reported a top line of $16.5 billion, down 10% yoy, and EPS of $2.08. The earnings were down 3% yoy, but up 48% from Q3. 5-star analyst Chris Kotowski, of Oppenheimer, advises investors to keep an even strain despite the year-over-year losses. “Our advice to investors is to take a deep breath, look at the numbers and see they were all basically in line and that the outlook is really not much changed from where it was previously… we are staying with the expectations for a significant wave of loan losses in 2H21E outlined in our preview [but] we think the strong likelihood is that this will prove way too conservative, and returns will normalize in 2022E,” Kotowski opined. In line with his optimistic approach, Kotowski rates C shares an Outperform (i.e. Buy) along with a $114 price target. Investors stand to pocket a 62% gain should the analyst's thesis play out. (To watch Kotowski’s track record, click here) Overall, their is broad agreement on Wall Street about the fundamental quality of the stock. Citigroup's Strong Buy consensus rating is based on 12 Buy and 3 Hold. C is selling for $70.38 and the $79.80 average price target suggests an upside of ~13% on the one-year time horizon. (See Citi’s stock analysis at TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Applovin, which provides software for mobile-game developers, made a regulatory filing for an initial public offering of stock. KKR owns more than two-thirds of Applovin's voting power.