Hot Top-Down Industry Trends to Invest In - Investment Ideas
13 November 2012 - 11:00AM
Zacks
I thought an interesting little piece would be to investigate
what industries are on the move in Zacks Industry Ranking
terms this week. What I have here are four industries that
have the highest recent movement up in Zacks Industry Ranks.
I found two broad macro top-down trends are alive and well here,
kicking up a lot of dust inside the Zacks Industry Ranks.
What this means? These industries earnings estimate revisions
are rising much more rapidly than other industries.
TOP-DOWN TREND #1.
With North American oil and gas production rising on
the back of new technologies, it makes a lot of sense to invest in
companies driving the fresh oil and gas production
growth.
One company highlighted is in Electronic Measuring Instruments
industry. It is involved in the sophisticated electronic
acquisition and monitoring of oil and gas wells. Related to
this fresh production growth trend is a strong Zacks Industry Rank
for the Biofuels industry. One company highlight is a
Biofuels company that can convert carbon-bearing gas, liquids, and
solids into usable hydrocarbons using a proprietary technology.
What this tells us? If you are looking for an investible
Energy sector play, look into the companies that supply the
sophisticated know-how and technology that is driving the fresh
growth in N. American production.
A. Strong Energy Industry –
Electronic Measuring Instruments
Rising +117 in the last week. Now Zacks Ranked 47th
out of 265 industries.
Company Highlight: Geospace Technologies Corporation
(Zacks Rank #1) is engaged in the designing and manufacturing of
scientific instrumentation and equipment used in the
acquisition and processing of seismic data, as well as in the
characterization and monitoring of producing oil and gas
reservoirs. The Company also manufactures and distributes
thermal imaging equipment and dry thermal film products. Geospace's
seismic products consist of land and marine nodal seismic data
acquisition systems; multi-component geophones and hydrophones;
seismic leader wires; geophone string and acquisition system
connectors; seismic telemetry cables; marine seismic cable
retrieval and steering devices; and data acquisition systems. It
also designs and manufactures non-seismic products, including
industrial products, offshore cables, thermal printing equipment
and film.
B. Strong Energy Industry
– Biofuels
Rising +83 in the last week. Now Zacks Ranked
100th out of 265 industries.
Company Highlight: Rentech, Inc. (Zacks #1 Rank) has developed
and owns a proprietary and patented gas-to-liquids process that
converts carbon bearing gases, liquids and solids into valuable
liquid hydrocarbon products. The technology works with various
feedstocks, including natural gas and industrial off-gas, heavy
crude oil and refinery byproducts, and coal and petroleum coke,
among other carbon-bearing materials.
TOP-DOWN TREND #2.
The second trend is good old-fashioned consumption
growth. We see that in the cool days of November, a fresh
produce maker is making a strong rise. And look at a
company marketing and distributing over-the-counter drugs, personal
care, and household cleaning products in the U.S. and
Canada.
What this tells us? If you are looking for a fresh Consumer
play, focus on something with broad appeal that can track the
strong movement in overall U.S. consumption growth and the
improvement in U.S. consumer confidence.
A. Strong Consumer
Products Industry – Agricultural Operations
Rising +112 in the last week. Now Zacks Ranked 66th
out of 265 industries.
Company Highlight: Fresh Del Monte Produce Inc. (Zacks #1
Rank, with an Outperform rating) is a world leader in the
production, distribution and marketing of fresh
produce. The products are marketed throughout the world
under the DEL MONTE brand name, which is a widely recognized symbol
of product quality and reliability. The major products are
bananas, pineapples, deciduous fruit and melons. The
deciduous fruit the company sells includes primarily grapes, plums,
nectarines, peaches, apricots, cherries, apples, pears and
citrus.
B. Strong Consumer
Products Industry – Miscellaneous Discretionary
Rising +66 in the last week. Now Zacks Ranked 105th
out of 265 industries.
Company Highlight: Prestige Brands Holdings (Zacks #1
Rank) is a marketer and distributor of brand name over-
the-counter drug, personal care and household cleaning
products sold throughout the United States and Canada. Key
brands include Compound W wart remover, Chloraseptic sore-throat
relief products, New-Skin liquid bandage, Clear eyes and Murine eye
and ear care products, Little Remedies pediatric over-the-counter
healthcare products, Cutex nail polish remover, Comet and Spic
& Span household cleaner and several other well-recognized
brands.
FRESH DEL MONTE (FDP): Free Stock Analysis Report
GEOSPACE TEC CP (GEOS): Free Stock Analysis Report
PRESTIGE BRANDS (PBH): Free Stock Analysis Report
RENTECH INC (RTK): Free Stock Analysis Report
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