6 Best Industrial Sub-sectors over the Past Two Weeks

1) Nonmetallic Mineral Mining

This industry begins and ends with Potash Company of Saskatchewan (POT). The stock had a very nice 5 day run to end the previous week up 6.5%. The three month chart doesn’t look as nice but this stock could move up quite a bit in the near future with earnings season starting and Potash announcing on the 24^th of April.

2) Independent Oil & Gas

This industry was on fire this past Friday. The big two companies here are both China oil companies in CNOOC (CEO) and China Petro & Chemical (SNP). CNOOC had a break away week reversing a long trend to the downside. Analyst have downgraded the current year but have upgraded their earnings estimates for next year. China Petroleum wasn’t as wonderful for the week with Friday making up for four days of nothing. This stock is still trying to break out of a bad trend. Both stocks are scary at this time and could continue their longer term trends down.

3) Specialty Chemicals

I haven’t written about Specialty Chemicals before but the top two large caps in this industry are somewhat attractive at this time. Sigma Aldrich (SIAL) is a much better trade than Braskem Aldrich (BAK). I like the charts much better on Sigma and the majority of the analyst like the earnings going forward better from Sigma also. Three analysts have raised Sigma Aldrich’s earnings estimates for the current year in the past seven days while two have raised next quarter’s earnings estimates in the past seven days.

4) Aluminum

Alcoa Inc (AA) has been stuck between 35 and 40 for 6 weeks and I am not convinced that it will breakout above 40 in the near future. Earnings are right around the corner and the company could surprise sending the stock higher. That would be the one case where you could get some upside. The other large-cap in the Alumni industry is Aluminum Company of China (ACH). Many of the big China stocks reversed trend this past week and moved significantly higher. I don’t buy the reverse and look for most of these stocks to move down again and continue the longer term trend.

5) Agricultural Chemicals

One of the last bull markets to loose its luster during the recent correction. Companies at the top of the list are Monsanto (MON), Mosaic (MOS) and Du Pont (DD). The earnings still look great for all three. Monsanto recently forecasted better than expected earnings for the year and announces their most recent quarter on Wednesday. All three stocks could move up leading to the announcement and jump if the numbers are good for Monsanto. Then follow-up the Monsanto earnings announcement with a Friday Mosaic announcement and this industry looks like a very good place to be the coming week.

6) Industrial Metals/Mineral

Put both BHP Billiton Limited (BHP) and BHP Billiton SP ADR (BBL) into the China reserve for the week with a long-term trend down category and move on. A third company Teck Cominco Ltd (TCK) did well this past week and has a strong three month chart with an upward trending price but the earnings aren’t anything to get excited about. I would pass up the Industrial Metals/Mineral industry and focus elsewhere.

Disclosure: None