4 Stocks To Watch In The Stock Market Today
Rising inflation has been a major concern among stock market investors lately. In March, inflation hit 8.5% in the U.S., signaling the fastest 12-month pace since 1981. In part, the increasing gasoline prices as a result of Russia’s invasion of Ukraine contributed to this sharp increase. Besides that, there is also a shortage of workers in the U.S. that is causing companies to boost pay to attract job candidates. Accordingly, companies are also lifting prices to maintain profit margins. Thus, investors will have to react accordingly to protect their portfolios. Fortunately, several sectors are more inflation-proof than others.
On Monday, CNBC’s Jim Cramer urged investors to turn their attention away from Big Tech and other growth stocks. He said, “For the moment, I do think we have to forget most of FAANG and focus on the money centers. The oils. Retailers with tremendous scale. Health insurers. Big pharma.” As an example, the natural gas liquids company, Marathon Oil (NYSE: MRO) has risen more than 55% since the start of the year. Elsewhere, mining companies such as Barrick Gold Corp (NYSE: GOLD) have also been gaining traction, climbing by more than 35% within the period. All things considered, investors are turning their attention to stocks that would hold their own during times of high inflation. So, here are some of the top names in the stock market today that would fit into this category.
Inflation Stocks To Watch Right Now
- Occidental Petroleum Corporation (NYSE: OXY)
- Exxon Mobil Corp (NYSE: XOM)
- Newmont Corporation (NYSE: NEM)
- American Tower Corp (NYSE: AMT)
Occidental is an energy company that specializes in exploration and production activities around the world. For now, it operates through three segments, oil and gas, chemical and midstream, and marketing. The oil and gas segment is responsible for exploring and producing oil, natural gas liquids, and natural gas. Also, the company operates a low carbon ventures (OLCV) business through its midstream and marketing segment as it recognizes the increasing emphasis on reducing emissions. OXY stock has been on a tear over the past year, skyrocketing by more than 140% within the period.
Late in March, the company’s OLCV subsidiary and Weyerhaeuser (NYSE: WY) announced an agreement. The partnership aims to evaluate and potentially develop a carbon capture and sequestration project in Louisiana. Hence, OLCV will have exclusive rights to develop and operate a carbon sequestration hub on more than 30,000 acres of subsurface pore space controlled by Weyerhaeuser. This is an important step in OLCV’s 1PointFive’s strategic vision to develop a series of carbon capture and sequestration hubs in the U.S. With that in mind, should you consider buying OXY stock today?
Another energy company that would likely be resistant to inflation is Exxon. The company operates through Upstream, Downstream, and Chemical segments. On one hand, its Upstream segment operates to explore for and produce crude oil and natural gas. On the other hand, the Downstream segment manufactures, trades, and sells petroleum products. Although XOM stock has not seen a meteoric rise like OXY stock, it has still risen by more than 50% over the past year. Moving forward, investors should be relieved to note that Exxon is a company that prides itself on continuous innovation for long-term growth.
For starters, it recently introduced its new Exceed™ S performance polyethylene (PE) resins. The new resin will deliver industry-leading combinations of stiffness and toughness while being easy to process. On top of that, the company’s new PE platform provides opportunities to reduce the complexity of film formulations and designs. All this is possible with enhancement in film performance, conversion efficiency, and packaging durability versus current market references. Exxon has been at the forefront of PE innovations for nearly three decades and this would just build on its leadership position in the market. So, would you be adding XOM stock to your portfolio?
Newmont is the world’s largest gold producer. Aside from that, the company engages in the production of copper, silver, lead, and zinc. Its world-class portfolio of assets, prospects, and talent is anchored in favorable mining jurisdictions in many parts of the world. On a sense of scale, Newmont has a gold reserve of approximately 92.8 million ounces, measured and indicated gold resources of over 68.3 million ounces. As some investors may be aware, gold is often seen as an inflation hedge. Thus, it should not be surprising that NEM stock has climbed more than 35% since the start of the year.
Despite all that it has achieved, Newmont is still not resting on its laurels. Yesterday, the company announced that it will acquire the remaining 5% interest in Yanacocha from Sumitomo Corporation for $48 million. Newmont President and CEO Tom Palmer said, “This transaction gives Newmont full equity ownership of the Yanacocha district where we are positioning the Sulfides project for profitable production and value generation for decades to come. We have deep knowledge of the asset and the value it brings to Newmont stakeholders.” All things considered, would NEM stock be a strong hedge against inflation right now?
[Read More] Top Stock Market News For Today April 13, 2022
To sum up the list, we have American Tower. For the uninitiated, the company operates as a real estate investment trust and specializes in multitenant communications real estate. Its global portfolio has more than 220,000 communication sites, including more than 43,000 properties in the U.S., and Canada, and approximately 177,000 properties internationally. Due to the nature of its business operations, AMT stock would likely boast stability even at times of high inflation. In fact, the company stock has climbed approximately 9% over the past month.
Investors should note that American Tower will be reporting its first-quarter financial results on April 27, 2022. Coming off a strong year in 2021, all eyes will be on the company’s performance. For its full-year 2021, the company reported total revenue of $2.24 billion, representing an increase of 15.2% year-over-year. Meanwhile, its net income increased by 22% to 441 million. Also, the company expects 2022 to be another solid year for growth across its comprehensive global portfolio. In light of this, would you consider investing in AMT stock ahead of its earnings report?