In this article, we will take a look at the 10 commodity stocks that received updated recommendations from analysts. If you want to see some more stocks whose ratings were recently changed by analysts, go directly to Analysts are Revising Ratings for These 5 Commodity Stocks.
Most commodity stocks generally perform well even when the overall economy and consumer sentiment are dwindling. That’s because these stocks pass on the impact of higher costs to consumers. Therefore, many investors turn to commodity stocks during uncertain economic times.
Recently, analysts revised their recommendations for several commodity stocks, including Chevron Corporation (NYSE:CVX), Corteva, Inc. (NYSE:CTVA) and EOG Resources, Inc. (NYSE:EOG).
In addition, agricultural fertilizers maker CF Industries Holdings, Inc. (NYSE:CF) and specialty materials company Celanese Corporation (NYSE:CE) also received updated recommendations from analysts. We will discuss the reasons behind the new recommendations for these companies in the remaining article.
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10. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 20
Coeur Mining, Inc. (NYSE:CDE) received a downgrade from Canaccord on Friday, August 5, 2022. The research firm lowered its ratings for the precious metals mining company from “Buy” to “Hold,” following its second-quarter results.
Canaccord analyst Dalton Baretto referred to the elevated technical and financial risks that could hurt Coeur Mining, Inc. (NYSE:CDE) in the coming quarters. Baretto also cut his price target for Coeur Mining from $3.75 per share to $3.50 per share.
Meanwhile, Coeur Mining, Inc. (NYSE:CDE) recently announced weak financial results for Q2. The company reported an adjusted loss of 5 cents per share on revenue of $204 million. Moreover, cash flow from operating activities declined to $23 million, from $58.1 million in the same period last year.
9. MDU Resources Group, Inc. (NYSE:MDU)
Number of Hedge Fund Holders: 26
BofA lowered its ratings for MDU Resources Group, Inc. (NYSE:MDU) from “Buy” to “Neutral” on Friday, August 5, 2022. BofA analyst Dariusz Lozny was moved by the company’s announcement to spin off its subsidiary Knife River.
Knife River is the construction arm of MDU Resources Group, Inc. (NYSE:MDU). It is primarily engaged in providing construction materials in the U.S.
Last week, MDU Resources Group, Inc. (NYSE:MDU) announced that it will separate Knife River from the company. The planned spinoff would create two independent firms. The senior management thinks the new firms would grow in a better way and increase shareholder value.
8. Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 30
Transocean Ltd. (NYSE:RIG) received an upgrade from Capital One on Tuesday, August 2, 2022. The research firm increased its ratings for the offshore drilling contractor from “Equal-Weight” to “Overweight,” while keeping a price target of $4.50 per share for the stock.
The upgrade came a day after Transocean Ltd. (NYSE:RIG) announced better-than-expected financial results for the second quarter. It reported a loss of 10 cents per share, narrower than a loss of 26 cents per share in the year-ago period.
Revenue for the quarter increased to $692 million, from $586 million in the comparable period of 2021. Analysts expected Transocean Ltd. (NYSE:RIG) to report a loss of 13 cents per share on revenue of $691.65 million.
7. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 32
Vertical Research downgraded LyondellBasell Industries N.V. (NYSE:LYB) from “Buy” to “Hold” on Monday, August 1, 2022. Vertical Research analyst Kevin McCarthy expects LyondellBasell’s margins to stay under pressure in the coming quarters.
McCarthy also thinks that the valuation of LyondellBasell Industries N.V. (NYSE:LYB) compared to its commodity peers is less attractive. He set a price target of $96 per share for LyondellBasell stock.
Like LyondellBasell Industries N.V. (NYSE:LYB), analysts also revised their recommendations for Chevron Corporation (NYSE:CVX), Corteva, Inc. (NYSE:CTVA) and EOG Resources, Inc. (NYSE:EOG).
6. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 32
Duke Energy Corporation (NYSE:DUK) received a downgrade from Credit Suisse on Friday, August 5, 2022. The research firm lowered its ratings for the electric power and natural gas holding company from “Outperform” to “Neutral,” citing a downside to the consensus earnings forecast.
The revised rating came a day after the company’s Q2 results. Duke Energy Corporation (NYSE:DUK) earned $1.14 per share on revenue of $6.69 billion in the second quarter. This compares to earnings of 96 cents per share and revenue of $5.76 billion posted by Duke for the comparable period of 2021. The results were also better than the consensus estimates.
Separately, Duke Energy Corporation (NYSE:DUK) recently announced that it is looking to spin off its commercial renewables business, which includes 5 GWs of solar and wind farms spread across the U.S.
The segment is among the country’s largest solar and wind businesses. However, its accounts for less than 5 percent of Duke’s consolidated earnings. Duke Energy Corporation (NYSE:DUK) plans to use the potential sale proceeds to pay back debt.
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Disclosure: None. Analysts are Revising Ratings for These 10 Commodity Stocks is originally published on Insider Monkey.
