Seeking Alpha

Oppenheimer, Strategas offer opposing views on materials stocks

Oppenheimer analysts are believers in the materials sector, citing increasing evidence that the global economy is modestly improving from its recent lethargic pace of growth, particularly in emerging markets.

Strategas isn't so sure; despite some stronger equity performance in recent weeks, it sees the persistence of cyclical weakness in emerging economies and the apparent forming of a structural consolidation in global commodities complex; it favors companies with a higher domestic revenue profile over those with a broader global footprint.

Vulcan Materials (VMC) gets just 1% of its revenue overseas, while Airgas (ARG) has just 2%; those least exposed to the U.S. economy include Newmont Mining (NEM), which gets all of its revenue abroad, and International Flavors (IFF) and Owens-Illinois (OI), which each get 23%-24% of sales at home.


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