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Gold, Copper, Energy and Cocoa: Hot or Not?

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  • (1:30) - What Exactly Is Going On With Commodities As A Whole?
  • (7:45) -  Breaking Down Oils Current Performance: What Should Investors Expect?
  • (13:00) - Should You Be Investing Into Gold Right Now?
  • (17:15) - The Smart Metal: What Is Copper Telling Us About The Market?
  • (20:30) - The Hidden Gem of Commodities: Where Should You Be Looking?
  • (27:40) - Episode Roundup: CVX, XOM, XLE, XOP, GDX, NEM, ABX, FCX, HSY
  •             Podcast!


Welcome to Episode #370 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Stock Strategist, Jeremy Mullin, who is the Editor of Zacks Commodity Innovators newsletter and portfolio, to discuss what is going on with commodities in August of 2023.

Which are up, which are down? Which commodities is Jeremy keeping on his watch list?

And how do you invest in those that are opportunities?

Tracey and Jeremy did a video podcast, in addition to audio, where Jeremy shares his take on the charts of key commodities, like gold, as well as several stocks. Tune in to see the charts.

5 Commodity Stocks for Your Watch List

1.      Chevron Corp. (CVX - Free Report)

Chevron is one of the largest integrated oil companies in the United States. Shares of Chevron are down 11.6% year-to-date after WTI crude fell to $64 earlier this year, and natural gas also plunged.

Earnings are expected to decline 29.7% in 2023 but rebound 10.7% next year but this will change based on prices of the underlying commodities. Chevron is cheap, with a PEG ratio of just 0.8. It pays a dividend, yielding 3.8%.

Should Chevron be on your watch list?

2.      Exxon Mobil Corp. (XOM - Free Report)

Exxon Mobil is also one of the largest integrated oil companies in the United States, with a big chemical business as well. Shares of Exxon are down 3.6% year-to-date.

Like Chevron, earnings are also expected to fall in 2023, falling 36.8%. But earnings are expected to rebound next year, gaining 4.4%. Exxon Mobil is also cheap, with a PEG of 0.6. It pays a dividend, as well, yielding 3.3%.

Should investors make a bet on Exxon Mobil on this share weakness in 2023?  

3.      Newmont Corp. (NEM - Free Report)

Newmont is one of the world’s largest gold producers and is the only gold producer listed in the S&P 500. Shares of Newmont have taken a hit in 2023, falling 19% year-to-date.

Earnings are expected to rise 14% in 2023 and another 33.8% in 2024. With the shares selling off, that makes Newmont cheap with a PEG ratio of 1.5. Newmont is also paying a big dividend, yielding 4.2%.

Should Newmont be on your watch list?

4.      Freeport-McMoRan Inc. (FCX - Free Report)

Freeport-McMoRan is a leading international mining company with reserves in copper, gold and molybdenum. If you’re interested in investing in copper miners, Freeport-McMoRan is one way to do so. Shares of Freeport-McMoRan are up 2.7% year-to-date.

Earnings are expected to fall 34% this year but jump 33.6% in 2024. It isn’t cheap on a P/E basis, as it trades at 24.7x. Freeport-McMoRan pays a dividend, currently yielding 0.8%.

Should those interested in copper have Freeport-McMoRan on your short list?

5.      The Hershey Company (HSY - Free Report)

Hershey has been making chocolate, sweets and mints for 125 years. It owns 90 brands. Shares have sold off during the last 3 months, losing 18.8% and are now down 5.2% year-to-date.

Earnings are expected to rise 12% in 2023 and another 7.8% in 2024. Even with the recent sell-off, however, Hershey isn’t cheap. It trades with a forward P/E of 23.1. Hershey pays a dividend, yielding 2.1%.

Is Hershey a deal after the sell-off?  

What Else Should You Know About 2023’s Hot Commodities?

Listen, or watch, this week’s podcast to find out.

[In full disclosure, Tracey owns shares of CVX in her personal portfolio.]

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