Since my last article on the XLE in December 2021, we have seen a further 52% gain in the ETF, even as oil prices have remained flat. Oil majors have been able to generate record free cash flows despite this drop in oil prices, which put the free cash flow yield at 14%.While free cash flows will almost certainly fall over the coming months, they should remain elevated, and combined with strong balance sheets, this should allow for continued high dividend payments.
Nuclear power emits zero carbon, but challenges with waste disposal, occupational safety, and high-profile accidents have led to immense backlash. Several individual companies covered by Morningstar equity
A few months ago, I wrote a cautious article on the SPDR S&P Retail ETF ( NYSEARCA: XRT ), arguing for caution as a weak December retail sales report suggest consumer spending may be faltering. Moreover,
Aerospace and defense could become a more profitable area as the United States becomes increasingly caught up in geopolitical tensions with China and Russia. I rate the SPDR S&P Aerospace & Defense ETF (
These factors, the abating of the ill effects of unwinding port congestion, speed adjustments which impacted capacity availability in a quick and meaningful manner, very reasonable capacity additions, and a return of
Full legalization of cannabis at the federal level isn’t expected to occur anytime soon, but on May 11, 2023 the U.S. Senate is expected to vote on the Secure and Fair Enforcement Banking (SAFE) Act. For this
The Invesco Solar ETF ( TAN C+ ) is the top-performing non-leveraged ETF over the past five years, a role the fund has held for several months. The bill promises to offer a raft of tax credits to help stimulate the
Producers would likely curb new drilling activity substantially and be forced to shut down certain areas of production or look at vertically integrating to lower operational costs and shield themselves from the
Midstream players with operations in the GOM are investing to grow capacity to transport crude oil produced offshore. Offshore production in the Gulf of Mexico (GOM) is poised for growth as new projects have
Renewable gasoline is not an alternative to electric vehicles, it’s just another option to get the carbon reductions we need. As noted in the video below, Toyota,
Taiwan Semiconductor reported a weak quarter as the semiconductor sector remains under pressure.The chip company continues to aggressively invest on signs of a chip bottom and signals from customers of strong future demand.Warren Buffett sold shares on geopolitical fears, yet signs suggest Berkshire should’ve loaded up on cheap shares.The stock is cheap at 13x ’24 EPS targets.
PBJ invests in U.S. food and beverage companies.While the headline IRR is on the lower side, it is not a very volatile ETF, and it is also inexpensive.The valuation would suggest that even if inflation persists and PBJ’s portfolio struggles to pass on the costs, the fund is still likely to beat inflation over the longer run.PBJ is a defensive bet, and probably only appealing to more risk-averse investors. It is however reasonably priced on the basis of earnings power and seems like a safe bet over the long run.
The Healthcare sector traditionally performs relatively well during recessionary periods.RYH is an equal-weighted ETF of the Healthcare stocks in the S&P 500. It has the best long-term relative chart of any sector in the index.RYH also has a relative Buy signal right now, and technically appears to be in a good relative zone for ownership.
“If you look at forecasts by the IEA, they say that we’ll grow, on the petrochemical side, three million barrels of oil or oil equivalents by 2030, and that half of our incremental crude demand between now and 2050 is
