Concerns over the potential for an increase in inflation and the resurgence of COVID-19 cases globally this year have spurred volatility in the stock markets. Also, given rising Treasury yields and the collapse of investment firm Archegos Capital Management, heightened volatility is probably here to stay for a while. Amid this environment, investors should target steady momentum stocks that have the capacity to dodge volatility…
As the global economy gradually recovers from the damage caused by the pandemic, businesses that experienced the recessionary headwinds are expected to recapture their pre-pandemic performance this quarter. In fact, shares of many companies could witness solid momentum despite heightened market volatility. Investors’ confidence in momentum stocks is evident in the Invesco DWA Momentum ETF’s (PDP) 7.8% returns over the past six months.
Linde plc (LIN – Get Rating), Lowe’s Companies, Inc. (LOW – Get Rating), ABB Ltd. (ABB – Get Rating), and Eaton Corporation plc (ETN – Get Rating) are stocks that have been witnessing strong momentum, which we believe they have the potential to maintain. So, we think it could be wise to invest in these stocks now.
Linde plc (LIN – Get Rating)
LIN is an industrial gas company based in Guildford in the U.K. The company constructs turnkey process plants, such as natural gas, air separation, hydrogen and synthesis gas. It provides hydrogen, helium, electronic and specialty gases, acetylene, and carbon monoxide to the healthcare, petroleum refining, manufacturing, food, beverage carbonation and other industries.
Last month, the company was selected by Norwegian ferry operator Norled to provide liquid hydrogen and related infrastructure to the world’s first hydrogen-powered ferry, MF Hydra. LIN is also expected to construct and install hydrogen storage, distribution and safety equipment. This should position the company to take the lead in reducing carbon emission in the marine sector.
In February, LIN opened two new air separation units (ASUs) to supply China’s Wanhua Chemical Group with gaseous oxygen and nitrogen. The company’s advanced technology should allow the ASUs to operate at a higher scale and with much greater flexibility.
LIN’s sales increased 3% year-over-year to $7.3 billion in the fourth quarter ended December 31, 2020. The company’s adjusted operating profit increased 20% versus its year-ago value to…
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