“There is always a bull market somewhere”: the famous words of Jim Cramer suggest that you can make money no matter what. Here are 2 powerful tailwinds you can take advantage of today


“There is always a bull market somewhere”: the famous words of Jim Cramer suggest that you can make money no matter what. Here are 2 powerful tailwinds you can take advantage of today

Today we are inundated with news about inflation and fears of recession. While these are real issues that will bring many businesses down, there is more to the story.

As Mad Money host Jim Cramer said, “there’s always a bull market somewhere.”

Even if you decide to stay away from some stocks, you can find opportunities in others. Here are two bull market sectors and stocks that are seeing strong growth.

Don’t miss

The natural gas industry is firing on all cylinders

Natural gas is currently trading near $10, more than 200% higher than last year.

This is easily explained, as there are strong demand and supply forces at work. On the demand side, the growth of the LNG industry has opened up the North American natural gas sector to strong global demand. According to the Energy Information Association, LNG exports have increased by almost 20% this year.

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On the supply side, North American natural gas is the cleanest, cheapest, most abundant and most reliable. However, North American infrastructure constraints have put pressure on supply, driving up prices.

In addition, the supply of natural gas from other countries is downright unreliable, which also drives up prices.

Chesapeake Energy Corp. (CHK)

This $13 billion oil and gas producer has assets in prolific basins such as Haynesville, in eastern Texas and western Louisiana, and the Marcellus Basin, which extends from northern New York State to Pennsylvania, West Virginia and Ohio.

Natural gas accounts for 85% of Chesapeake’s production, which is very positive considering the bullish state of the natural gas industry today.

In addition, the company occupies a privileged position close to the Gulf Coast, where many LNG terminals are located. In fact, more than 2 billion cubic feet of Chesapeake natural gas is immediately adjacent to Gulf Coast LNG terminals.

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This translates to a bright future as the company works to secure contracts for its gas to these LNG terminals. This will provide access to higher LNG prices as well as greater diversification.

Similar to most natural gas producers today, Chesapeake generates massive cash flow: Management expects to generate more than $9 billion in cash flow over the next five years. In its most recent quarter, it generated $532 million in adjusted free cash flow, more than 50% more than last year and the highest quarterly amount in its history.

Much of this cash flow will be returned to shareholders in the form of dividends and share buybacks, both of which are catalysts for driving the stock higher.

Digitization trend pushes IT consulting firms higher

As the benefits of digitization have become increasingly clear, this trend is driving a bull market in the tech world.

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The banking sector, among others, is in a hurry to digitize. Hindered by outdated technology platforms, banks see the writing on the wall. Digitization is necessary to remain competitive. And the banks are all there.

For example, Citigroup Inc. is embarking on an “aggressive growth strategy”. As Jonathon Lofthouse, Head of Enterprise Risk Markets and Technology, puts it, “Companies that can digitize fastest are going to create a competitive advantage.”

CGI Inc. (GIB)

This Canadian information technology consulting firm has established itself as a leading player with a strong global presence.

CGI has grown from a startup in 1976 to a $17 billion company today.

Within this space, demand from financial institutions is strong and growing rapidly. CGI’s latest quarter showed strong growth across most sectors, with the banking sector once again standing out.

The company recorded strong revenue growth, accompanied by a 14% increase in EPS.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


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