Tuesday's trading session was quite positive as investors await the Fed's decision regarding interest rates, due out on Wednesday as their two-day session comes to a close. One of the positive catalysts fueling Tuesday's gains was the energy sector. The Energy Select SPDR (XLE) was up nearly 1.5% on the day and many of the S&P 500 energy based components were also up. Two of those companies look very attractive especially at these levels.
First Solar (FSLR) - FSLR which trades in a 52-week range of $11.43 (52-week low) and $142.22 (52-week high), closed trading at $15.23/share on Tuesday. Shares surged nearly 5% during trading on the news that FSLR may get a boost from Japanese solar energy subsidies. Tuesday is the second day the stock has rallied on such news and if the reports are accurate we could see some substantial upside within shares of FSLR.
Analysts are expecting FSLR to earn $1.00/share on revenue of $823.06 million dollars for the June 2012 quarter, and considering the last four quarters haven't been much better than dismal at best, investors should still remain cautious as the Eurozone crisis could weigh heavily on the company. For those looking to establish a position in the company, I'd begin with a small one and gradually add to that position as earnings announcements approach.
Nabors Industries (NBR) - NBR which trades in a 52-week range of $11.05 (52-week low) and $27.63 (52-week high), closed trading at $13.71/share on Tuesday. Shares surged nearly 5.8% during trading on the news that NBR is continuing to gain momentum on the news that Natural Gas prices may actual enhance the growth in the stock. In an article that was published over the weekend in Barrons, it was noted that a rise in the price of natural gas may positively affect Nabors share price hinting it could go as high as $30/share in the future.
Analysts are expecting NBR to earn $0.45/share on revenue of $1.78 billion dollars for the June 2012 quarter, and considering the last four quarters haven't been all that great with just of the quarters minimally surpassing expectations, investors should still remain cautious. One the good things going for NBR, is the appointment of new CEO Anthony Petrello. A reignited confidence may indeed satisfy shareholders as a new corporate strategy will be implemented in the coming months. For those looking to establish a position in the company, I'd begin with a small one and gradually add to that position as both earnings announcements approach and natural gas prices continue to drive higher.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.