The Daily Brief | May 26, 2022

Natural Gas, Tech Stock Bottom? and Home Depot

Keep an eye on natural gas stocks.

Prices just surged above $9 per MMBtu, hitting its highest level in more than a decade. All thanks to falling inventories.

“David Givens, head of natural gas and power services for North America at Argus Media, pointed to three key catalysts fueling the rally: little production growth, high liquified natural gas exports, and storage levels that are roughly 17% below the five-year average,” says CNBC.

Unfortunately, gas prices could push aggressively higher.

All as demand grows faster than supply, which could lead to higher prices, according to the U.S. Federal Energy Regulatory Commission (FERC).

Here are three ways to potentially trade higher gas prices.

Trading Tips

After a vicious pullback in the markets, it appears we may be bottoming out.

If that’s the case, keep an eye on beaten down tech stocks, like Advanced Micro Devices (AMD).

Not only has growth been explosive, but the company continues to chip away at competitor market share, which should continue for some time.

In addition, the tech company just blew earnings out of the water.

EPS came in at an adjusted $1.11, as compared to estimates for 91 cents – a year over year jump of 117%. Revenue was up 71% to $5.89 billion, which was also above expectations for $5.52 billion. As for the current quarter, AMD said it expects $6.5 billion in sales, which is also above expectations for $6.38 billion.

“Although the PC market is experiencing some softness coming off multiple quarters of near-record unit shipments, our focus remains on the premium, gaming and commercial portions of the market where we see strong growth opportunities and expect to continue gaining overall client revenue share,” AMD CEO Lisa Su said, as quoted by CNBC, adding that AMD believes that it has gained market share in PC chips for eight straight quarters.

Insider Buying: Home Depot (HD)

After slipping from $420 to $280, Home Depot is technically oversold. Helping, one of the Directors at the company just bought 1,500 shares of the stock for just under $435,000. That’s also the first insider buying since December 2020.

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