Chevron, Merck lead five stocks showing strength in a bad market

Your stocks to watch this week include five companies still thriving as the broader market dips: Dow Jones Giants Chevron (CVX) and together with Merck (MRK), together with defense contractor Northrop Grumman (NOC), fertilizer giant Mosaic (MOS) and lithium producer Levent (LTHM).




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Markets falter as investors try to gauge the effects of rising interest rates and inflation. But some of those stocks, like Northrop, Mosaic and Chevron, have held up after the Russian invasion of Ukraine, pushing commodity prices up and expectations for defense spending soaring.

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

Northrop Grumman Stock

Shares of Northrop Grumman rose 0.4% on Friday to 468.70 in the stock market, up 6.7% for the week. Shares were in a head-to-head basis with a buy point of 477.36.

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

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

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

General dynamics (GD), another defense contractor, was Stock of the Day on Thursday. Lockheed Martin (LMT) was also a recent share of the day.

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

“A major world power has crossed a recognized international boundary to take territory by force and as a result, the value of a strong deterrent to war as an instrument of the country’s geopolitical strategy has not been greater since the mid-20th century. “, he said. continued.

Like the other stocks you can view here, Northrop Grumman has a strong Composite Rating. The Composite Rating is 90. The EPS Rating is 68.

mosaic stock

Mosaic shares fell 1% to 64.07 on Friday, just below the 50-day line. It’s even further below the 10-week line. So a break below recent lows could be a sell signal, even if a strong recovery could provide a buy signal.

MOS shares rose as much as 2.6% for the week.

Demand for crops from China and a spike in natural gas prices – a key input for making nitrogen fertilizer that peaked after the invasion of Russia – have pushed 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 the plant nutrients in an effort to secure their own crops and food supplies amid concerns about shortages.

Mosaic reported mixed first-quarter results last week, although profits rose 323%. But the company, which produces phosphate and potassium fertilizers, said the export restrictions and sanctions, along with agricultural and supply disruptions caused by the war, would lead to increased demand for thinner stocks of crops and fertilizers.

“Increased crop prices, coupled with global fertilizer industry supply constraints, have pushed nutrient prices up,” CEO Joc O’Rourke said during the company’s earnings call. “As for potash, sanctions against Belarus and uncertainty about Russian exports are impacting supply. Prices in the world market have risen as buyers try to secure sufficient volumes.”

“The global phosphate market has also priced in uncertainty about Russian supplies of both finished products and imports such as ammonia and sulfur, although we are seeing some movement in Russian phosphates today,” he continued.

Mosaic stocks have a Composite Rating of 99. The EPS rating is 79.

Chevron Stock

Chevron shares jumped 9% for the week to 170.78 and bounced back above the 50-day line. Shares were flat with a buy point of 174.86. Investors should now be able to buy CVX shares off the 50-day line.

Stocks have a best possible Composite Rating of 99. The EPS rating is 77.

Chevron extracts oil from the earth and also runs refineries that turn it into gasoline and other materials. Rising oil and natural gas prices led to a huge jump in profits and sales during Chevron’s first quarter, the results of which were reported last month. Refining margins are huge, especially for diesel fuel, which is a big boost for integrated giants like Chevron.

However, Chevron’s earnings per share fell short of expectations. Even if prices rise, the company said it expects lower production 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 shares, up 0.45% to 88.41 Friday, are in a handle base cup with a buy point of 89.58. The RS line is just below its 52-week high.

As with the other stocks you can view here, it has a Composite Rating in the 90s. That rating is at 98. The EPS rating is also strong, at 93.

The stock jumped after its gains at the end of last month and briefly reached the buying point. Merck’s Covid Pill helped improve outcomes.

Merck shares are listed on SwingTrader.

Livevent Inventory

Shares of Livent fell 0.4% to 28.02 on Friday, but shot up 31% for the week. Shares were on a cup basis with a buy point of 33.14.

Shares of the lithium products maker rose this week following its gains and strong guidance. Prices for lithium materials used in electric vehicles have risen as the supply of those goods remains limited. The company said it expects prices to remain flat for the rest of the year.

The move higher for the stock placed it above a trendline and, in short, above the short-term resistance at 28.32. In a better market, the stock may be more useful. But investors can also wait for LTHM stocks to pick up a handle, consolidate gains and provide a lower buying point.

Livent stocks have a Composite Rating of 98 and an EPS Rating of 74.

Lithium giant Albemarle (ALB) also reported booming earnings last week and raised the outlook, prompting a similar gain for ALB stock.

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