Many are saying that globalization is coming to a screeching halt. Russia’s actions in Ukraine have undone three decades of progress.
Nations have become dependent on one another for trade. But the last few months have shown how vulnerable that can leave us (if the Suez Canal blockage didn’t do that already last year).
As President Biden said this week, “It’s going to be real. The price of these sanctions is not just imposed upon Russia; it’s imposed upon an awful lot of countries as well, including European countries and our country as well.”
He continued, saying, “Both Russia and Ukraine have been the breadbasket of Europe in terms of wheat, for example.”
The White House is now talking with national security, agriculture and Treasury officials to figure out how to prevent supply shortages and price hikes.
The president has also stated the United States needs to produce more food and become less reliant on foreign imports.
And this trend for increased American agriculture output is readily apparent in the stock market…
Agricultural stocks are booming, so that is where we are going to focus our efforts in this week’s Watchlist.
Read on for all the details…
ICL Group Ltd
ICL Group Ltd (ICL) is a $15.6 billion specialty minerals and chemicals company based out of Tel Aviv, Israel.
The stock dipped with the rest of the market at the start of the year but is now pushing towards new multi-year highs.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…
- Surge score: 98/100
- % Above 52-wk low: 108%
- Sales growth: +55%
- Return on Equity: 19%
- Triple momentum: yes
Look at the volume bars at the bottom of this chart, and you will notice a huge increase in trading volume over the last several weeks.
The stock topped out at $12.21, retraced slightly and then shot right back to its highs.
I think ICL is a buy at new highs with a sell stop below last week’s low.
Bunge Limited
Bunge Limited (BG) is a $16.5 billion agribusiness and food company based out of St. Louis, Missouri.
The stock has been on a tear since the middle of 2021 and continues to push to new 52-week highs.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 96/100
- % Above 52-wk low: 60%
- Sales growth: +32%
- Return on Equity: 29%
- Triple momentum: yes
Bunge is one of the top-rated stocks in the agricultural sector.
It has been advancing beautifully and even made new highs while the market was making lows – a clear sign of leadership.
Price is a bit extended right now, but look for a pullback to buy in the $110-$112 area.
The Andersons, Inc.
The Andersons, Inc. (ANDE) is a smaller, $1.8 billion agricultural company focused on grain storage operations as well as fertilizer and other farm products.
Like Bunge, ANDE is also making a series of new 52-week highs.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 98/100
- % Above 52-wk low: 108%
- Sales growth: +51%
- Return on Equity: 10%
- Triple momentum: yes
With a Surge Score of 98/100, ANDE is outperforming 98% of all other stocks.
As with our other two stocks, volume has surged in a big way over the last four to five weeks, which is a sign that investors are flocking to the agricultural sector.
Shares are up 23% over the last two weeks, so I would prefer to see a small pullback before buying in order to keep risk below 10%.
Others may choose to simply buy at the current price.
Before I go, you’d like a step-by-step walkthrough on how to best take advantage of trades like these…
Be sure to check out my recent article, How to Follow My Weekly Trades, to know where I’m buying so that you can follow along.
Embrace the surge,
Ross GivensEditor, Stock Surge Daily
The post Watchlist Update: This Sector of the Market is on Fire appeared first on Stock Surge Daily.
