Month: January 2025

Will the Worst Performing Sector Last Year Outperform This Year?

By Fred Fuld III

The worst performing sector in 2024 was Basic Materials, which although was ahead last year, it closed the year up less than a quarter of a percent, grossly underperforming the S&P 500, which was up about 25%.

Of course the winning sectors were the Communications, Financial, and Consumer Discretionary, all of which outperformed the S&P and even the Technology sector.

The Basic Materials sector of the stock market encompasses companies involved in producing, processing, or supplying raw materials essential for manufacturing and construction. This includes businesses that extract natural resources, refine raw materials, or manufacture intermediate goods.

Mining companies are a significant part of this sector, focusing on metals and minerals such as gold, silver, copper, and aluminum. Some also specialize in coal mining, extracting and processing coal for energy or industrial use. The chemical industry is another major component, producing both commodity chemicals like ammonia and chlorine, as well as specialty chemicals tailored for specific applications such as adhesives, coatings, and agricultural products. Fertilizer and agricultural chemical manufacturers, supplying key inputs like nitrogen, phosphate, and potash, also fall within this category.

Forestry and paper companies are essential players, with businesses harvesting wood and manufacturing timber, paper, and packaging materials. Similarly, producers of construction materials, such as cement, sand, gravel, and crushed stone, play a critical role in infrastructure and building projects. The sector also includes manufacturers of plastics and polymers, which supply raw or semi-finished plastics used in various industries, from packaging to manufacturing.

Steel and aluminum producers are another key component, providing essential materials for construction, automotive, aerospace, and industrial equipment. Precious metals and gemstones companies also belong to this sector, focusing on the extraction and refining of gold, silver, diamonds, and other gemstones for use in jewelry and as investment assets. Additionally, some companies produce materials specifically for energy production, such as oilfield chemicals or components for renewable energy infrastructure.

Overall, businesses in the Basic Materials sector are deeply influenced by commodity prices, global economic trends, and the supply-demand dynamics of various industries.

So what are the top stocks in this sector, and will they outperform this year? All of the following companies have a trailing price to earnings ratio under 30, a forward P/E of less than 20, and a relatively low amount of debt.

Idaho Strategic Resources Inc. (IDR)

Idaho Strategic Resources Inc., headquartered in Coeur d’Alene, Idaho, is a vertically integrated junior mining company primarily engaged in the exploration, development, and extraction of gold. The company operates the Golden Chest Mine, located in the Murray Gold Belt of North Idaho, which includes both underground and open-pit mining operations. In addition to gold production, Idaho Strategic Resources is involved in the exploration of rare earth element projects situated in the Idaho REE-Th Belt near Salmon, Idaho. The company emphasizes sustainable mining and milling practices and has a strategic focus on expanding its asset base while investing in future operations. 

The stock trades at 24 times trailing earnings and 16 times forward earnings. Earnings per share growth this year were 622% with earnings expected to grow another 18.5% next year. Earnings per share over the trailing 12 months were up 341% on sales growth of 65%. The company has an extremely low market capitalization of $168 million, and should therefore be considered very speculative.

Innospec Inc. (IOSP)

Innospec Inc. is a global specialty chemical company headquartered in Englewood, Colorado. The company operates through three main business segments:

  1. Fuel Specialties: This segment focuses on products that enhance fuel efficiency, boost engine performance, and reduce emissions for various modes of transportation, including automobiles, boats, and airplanes. It also provides products used by oilfield services providers in the extraction of oil and gas. 
  1. Performance Chemicals: Catering to the personal care industry, this segment offers a range of products designed for personal care applications. 
  1. Oilfield Services: This segment develops and markets products aimed at preventing mud loss during drilling operations. 

Innospec places a strong emphasis on research and development, striving to introduce innovative products that meet evolving market needs. The company operates manufacturing, research centers, and facilities across 24 countries, underscoring its global reach. 

The stock has a trailing P/E of 20 and a forward P/E of 18. Earnings per share next year are expected to grow by 5.96%. The company, which has a market cap of $2.85 billion, even pays a dividend of 1.35%.

Metallus Inc. (MTUS)

The company makes alloy, carbon and micro-alloy steel products from recycled scrap metal in Canton, OH. Its products are used in industrial, automotive, aerospace & defense and energy end-markets.

This $650 million market cap stock trades at 30 times trailing earnings and 14 times forward earnings. Although earnings per share growth was down for this year, next year earnings are expected to grow by 71.8%

The stock has an extremely favorable price-to-sales ratio of 0.55, and is selling at 91% of book value. 

Disclosure: Author didn’t own any of the above at the time the article was written. This article includes stocks with low market caps that should be considered very speculative.

Stocks Going Ex Dividend in February 2025

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Citigroup, Inc. (C)2/3/20250.562.86%
Constellation Brands, Inc. (STZ)2/7/20251.011.84%
Target Corporation (TGT)2/12/20251.122.87%
TJX Companies, Inc. (TJX)2/13/20250.3751.25%
Johnson & Johnson (JNJ)2/18/20251.243.35%
Applied Materials, Inc. (AMAT)2/20/20250.400.86%
Tyson Foods, Inc. (TSN)2/28/20250.503.57%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author didn’t own any of the above at the time the article was written.

Rise of the Robots: Exploring Growth, Innovation, and Investment Opportunities in Robotics

by Fred Fuld III

The Growth of the Robotics Industry

The robotics industry is undergoing a period of unprecedented expansion, driven by advancements in artificial intelligence, machine learning, and automation. From manufacturing and healthcare to consumer applications and entertainment, robotics is transforming the way we work, live, and interact with technology. A particularly intriguing segment within the field is humanoid robotics, which has seen significant innovation in recent years. These robots are designed to mimic human appearance and behavior, and they have the potential to revolutionize industries ranging from customer service to elder care.

Humanoid Robots: The Face of Future Robotics

Humanoid robots are among the most sophisticated innovations in robotics. These machines are engineered to resemble humans, not just in appearance but also in capabilities, including speech, mobility, and decision-making. Companies like Tesla, Hanson Robotics, and SoftBank are leading the charge, creating humanoid robots capable of performing complex tasks. They are increasingly being employed in roles such as receptionists, tutors, and even therapists. With their ability to interact naturally with humans, humanoid robots offer promising solutions for labor shortages and the growing demand for personalized services.

Investment Potential in Robotics

The robotics industry presents compelling opportunities for investors. The sector is poised for long-term growth, with a market expected to reach over $500 billion by 2030. Key drivers include the increasing need for automation, advancements in AI, and expanding applications across sectors such as healthcare, logistics, and retail. Robotics companies often represent a mix of established players and innovative startups, providing a range of investment opportunities to match different risk profiles.

Below is an analysis of several publicly traded companies that offer exposure to the robotics market:

UiPath (PATH)

UiPath specializes in robotic process automation (RPA), a technology that enables software robots to automate repetitive tasks. The company’s platform allows businesses to increase efficiency by automating workflows, data entry, and other routine processes. UiPath has gained significant traction among enterprises looking to digitize their operations. Its focus on AI-powered automation and a subscription-based revenue model make it an attractive investment for those interested in software-centric robotics.

This $7.2 billion market cap stock is trading at 25 times forward earnings. Annual sales growth for the past five years is in excess of 59% and have increase by 16.5% year-over-year.

Rhythm Technologies (IRTC)

Rhythm Technologies focuses on healthcare robotics, specifically in the domain of cardiac monitoring. The company’s wearable devices use advanced algorithms to detect arrhythmias, providing critical data for physicians. With an aging global population and a growing emphasis on preventive healthcare, Rhythm Technologies is well-positioned to capitalize on the increasing integration of robotics and AI in medical diagnostics and monitoring.

The stock has been generating negative earnings, but is anticipated to have much smaller losses next year. The company, which has a market cap of $3.4 billion, has a substantial amount of debt, with a debt to equity ratio of 10.25.

Intuitive Surgical (ISRG)

A pioneer in robotic-assisted surgery, Intuitive Surgical is best known for its da Vinci Surgical System. The system enables surgeons to perform minimally invasive procedures with greater precision and control. As healthcare providers continue to adopt robotic surgery for its efficiency and improved patient outcomes, Intuitive Surgical’s dominance in this niche market makes it a strong contender for long-term growth.

The company, with a market cap of $211 billion, has a trailing price to earnings ratio of 95 and a forward P/E ratio of 75. Quarterly earnings growth was over 34% year-over-year, on sales growth of 16.8%.

ABB (ABBNY)

ABB is a global leader in industrial robotics and automation technologies. The company’s robotics solutions are widely used in manufacturing, logistics, and energy sectors. ABB’s focus on integrating AI into its robotic systems ensures it remains competitive in the rapidly evolving industrial landscape. Its diverse product portfolio and strong international presence make it a reliable choice for investors seeking exposure to industrial robotics.

The stock has a market cap of $101.6 billion, and trades at 26 times trailing earnings. It even pays a dividend of 1.77%.

Teradyne (TER)

Teradyne specializes in automated test equipment for electronics and is a significant player in collaborative robotics. Its Universal Robots division produces robotic arms designed to work alongside humans in industrial settings. With the increasing adoption of collaborative robots in small- and medium-sized enterprises, Teradyne stands out as a growth-oriented investment in the robotics space.

The stock has a market cap of $22.5 billion, and has a trailing P/E of 44, and a forward P/E of 32.5. Earnings per share are expected to grow by over 34% next year. The dividend yield is 0.34%.

iRobot (IRBT)

Known for its consumer-focused robots, iRobot is the creator of the popular Roomba vacuum cleaner. While its current focus is on household automation, the company continues to explore new applications for its technology. The acquisition of iRobot by Amazon in 2023 has further bolstered its innovation capabilities, positioning it to expand into smart home ecosystems and beyond.

The stock, which has a market cap of $270 million, has been generating negative earnings. Losses are expected to be much lower next year.

Conclusion

The robotics industry offers a rich landscape for innovation and investment. With breakthroughs in humanoid robotics and steady advancements in automation technologies, the sector is set to play a crucial role in shaping the future. Investors have a unique opportunity to capitalize on this growth by exploring companies like UiPath, Rhythm Technologies, Intuitive Surgical, ABB, Teradyne, and iRobot. As robotics continues to integrate deeper into our daily lives, the potential for financial returns and societal benefits makes this an exciting area to watch.

Disclosure: Author didn’t own any of the above at the time the article was written.

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Powering the Future: Nuclear Energy’s Comeback and Top Stocks to Watch

by Fred Fuld III

The Growth of the Nuclear Power Industry and Promising Investment Opportunities

As the world transitions to cleaner and more sustainable energy solutions, nuclear power is experiencing a resurgence as a key player in the energy sector. Known for its ability to generate vast amounts of electricity with minimal carbon emissions, nuclear energy has become a cornerstone in global strategies to combat climate change. The nuclear power industry is expected to grow significantly in the coming decades, fueled by technological advancements, policy support, and the increasing recognition of its role in achieving net-zero emissions. For investors, this represents a compelling opportunity to capitalize on the growth of the industry. Here, we delve into three nuclear stocks with promising potential: NuScale Power Corporation (SMR), Oklo Inc. (OKLO), and NANO Nuclear Energy Inc. (NNE).

The Rising Importance of Nuclear Power

Nuclear energy has several advantages over traditional fossil fuels and even some renewable energy sources. It provides a stable and reliable energy output, is not subject to weather variations like solar or wind, and has a much smaller land footprint. As countries around the globe set ambitious climate goals, nuclear power is being reconsidered as a viable and essential part of the energy mix.

In the United States, initiatives like the Department of Energy’s Advanced Reactor Demonstration Program are spurring innovation in nuclear technology. Globally, nations such as China, France, and South Korea are ramping up their nuclear capacity, signaling strong long-term demand for nuclear solutions.

NuScale Power Corporation (Ticker: SMR)

NuScale Power is a pioneer in small modular reactor (SMR) technology. SMRs are a game-changer for the industry, offering a more flexible and cost-effective approach to nuclear power generation. NuScale’s innovative reactor design has already received approval from the U.S. Nuclear Regulatory Commission, positioning the company as a leader in this emerging market. With projects underway in the U.S. and international interest from countries like Romania and Poland, NuScale is poised to become a major player in the global energy landscape.

The company is debt-free, however it has been generating negative earnings.

Oklo Inc. (Ticker: OKLO)

Oklo is at the forefront of micro-reactor technology, focusing on creating smaller, more efficient reactors capable of utilizing recycled nuclear fuel. The company’s approach aligns with the growing emphasis on sustainability and waste reduction in the energy sector. Oklo’s Aurora micro-reactor is designed for off-grid and remote applications, making it an attractive solution for industries and regions with limited energy infrastructure. With its unique value proposition and focus on innovation, Oklo represents a high-growth opportunity in the nuclear sector.

The company has been generating losses, however the losses are expected to be significantly less for the new year. It has no long term debt.

NANO Nuclear Energy Inc. (Ticker: NNE)

NANO Nuclear Energy Inc. is an emerging player leveraging advanced technologies to redefine nuclear power. The company is focused on developing compact and portable nuclear solutions that cater to diverse applications, including disaster recovery, military, and space exploration. By addressing niche markets and leveraging cutting-edge technology, NANO Nuclear Energy has positioned itself as a disruptor in the industry. Its commitment to safety and sustainability further enhances its appeal to investors and stakeholders.

The company has been generating losses, and does have a small amount of debt, both short term and long term.

Why Invest in Nuclear Stocks?

Investing in nuclear energy companies provides exposure to an industry poised for significant growth. As governments and corporations alike seek to decarbonize their operations, nuclear power’s role in providing reliable and clean energy is becoming increasingly vital. Companies like NuScale, Oklo, and NANO Nuclear Energy are well-positioned to benefit from this trend, thanks to their innovative technologies and strategic initiatives.

Conclusion

The nuclear power industry is on the cusp of a transformative era. With advancements in technology and growing global recognition of its importance, nuclear energy is set to play a critical role in the sustainable energy transition. For investors, companies like NuScale Power Corporation, Oklo Inc., and NANO Nuclear Energy Inc. offer exciting opportunities to participate in this growth story. As always, it is important to conduct thorough research and consider the risks before investing in any stock. However, the future of nuclear power looks brighter than ever, making it a sector worth watching closely.

Disclosure: Author didn’t own any of the above at the time the article was written.