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This inflation-focused ETF may be in a sweet spot
  + stars: | 2024-05-11 | by ( Emily Glass | ) www.cnbc.com   time to read: +2 min
But even if the Federal Reserve starts to cut this year, Horizon Kinetics' James Davolos thinks his firm's Inflation Beneficiaries ETF (INFL) is in a sweet spot. "We're actually going into the mature phase of inflation," the firm's portfolio manager Davolos told CNBC's "ETF Edge" this week. Horizon Kinetics created the Inflation Beneficiaries ETF in January 2021 as inflation started to rise after the Covid-19 pandemic quarantine. As of April 30, FactSet shows the Inflation Beneficiaries ETF's top holdings include Wheaton Precious Metals , PrairieSky Royalty and Viper Energy . As of Friday's close, the Inflation Beneficiaries ETF is up 30% since its inception.
Persons: James Davolos, We're, Davolos, CNBC's Organizations: Federal Reserve, Reserve, Wheaton Precious Metals, PrairieSky, Viper Energy
Grade my trade: XPO, DEC, VNOM & GOOGL
  + stars: | 2023-09-08 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGrade my trade: XPO, DEC, VNOM & GOOGLCNBC’s ‘Halftime Report’ investment committee, Bryn Talkington, Steve Weiss, Shannon Saccocia and Jason Snipe, weigh in XPO, Copper, Viper Energy and Alphabet.
Persons: Bryn Talkington, Steve Weiss, Shannon Saccocia, Jason Snipe Organizations: DEC, Viper Energy
These are Wall Street's favorite energy stocks as oil rallies
  + stars: | 2023-09-07 | by ( Pia Singh | ) www.cnbc.com   time to read: +3 min
For investors looking to play this trend, here are some energy stocks with the greatest long-term upside potential. The sector has added 0.5% this week as oil prices rallied from news of extended voluntary oil supply cuts from Saudi Arabia and Russia until year-end. Oil and natural gas company Diamondback Energy is another name on the list. Natural gas producer EQT , oil and gas giant EOG Resources , as well as petroleum refining and marketing company Valero Energy , are also Wall Street favorites. For investors looking for energy stocks but who do not want to bet on individual names, the Energy Select Sector SPDR Fund (XLE) and the iShares U.S. Energy ETF (IYE) track companies in the sector.
Persons: Russell, Halliburton, Nitin Kumar, EQT, — CNBC's Michael Bloom Organizations: Energy, CNBC, Oil, Resources, Diamondback Energy, Diamondback, Energy Partners, Warwick Capital Partners, Valero Energy, Mizuho Securities, Valero, Energy Investment, U.S . Energy Locations: Saudi Arabia, Russia, Oil and Texas, EQT, U.S, XLE
But fund manager James Davolos believes the commodities sector is where it's at for savvy investors. "I don't really worry about volatility that much, but I continue to think that the one universally underpriced asset class today is commodities," Davolos, portfolio manager at Horizon Kinetics, told CNBC's "Street Signs Asia" on Monday. Stocks to play it One of his top picks is Lithium Royalty Corp, which owns a royalty portfolio of lithium mines. Davolos believes the market is underappreciating Lithium Royalty as most of its portfolio mines have yet to commence production. Davolos also likes two other stocks : Viper Energy Partners , which owns a royalty portfolio of oilfield assets, and its parent company Diamondback Energy .
Energy was the second-best-performing sector of the S & P 500 last week, as investors flocked back into the stocks amid a recent dip in oil prices. Thummel also likes two energy infrastructure stocks — Cheniere Energy and Energy Transfer . He likes Viper Energy Partners , which owns a royalty portfolio of oilfield assets. "Viper Energy has one of the largest backlogs of tier-one locations in the [Permian] basin. Viper Energy is thus able to leverage improving energy prices while having "strong" downside support, according to Davolos.
Final Trades: Abbott Labs, GE Healthcare, Viper Energy and more
  + stars: | 2023-01-23 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: Abbott Labs, GE Healthcare, Viper Energy and moreThe "Halftime Report" traders give their top picks to watch for the second half.
Here are six energy companies that Davolos believes are strong long-term investments. Expect high inflation to hurt earnings in 2023 and beyondOf all the trends Davolos spotted, one stands out most: inflation will be higher for longer. Most investors assumed that the high inflation of the 1970s and '80s was gone forever after the internet and other technology kept prices down during the previous two decades. Stocks broadly will likely suffer if inflation stays stubbornly high, Davolos said, given that higher prices weigh on firms' profit margins. Energy royalty companies' efficient, asset-light business model gives them lofty operating margins that are the envy of their peers.
After enjoying a monster rally in 2022, energy stocks are heading into an uncertain new year. Energy stocks surged this year after the war in Ukraine interrupted the global oil supply, and drove up the price of a barrel of oil. Ongoing geopolitical risks To be sure, not everyone believes that the outlook is positive for energy stocks, especially without the resolution of some ongoing geopolitical disruptions. That would be bad even for energy stocks. If they do add to their energy allocation, he stressed a preference for U.S. energy over global energy for a "more stable" investment environment.
Investors should buy Diamondback Energy, a top Permian Basin oil producer, as the U.S. struggles to meet demand, according to KeyBanc. Analyst Tim Rezvan initiated coverage of Diamondback Energy with an overweight rating. He also slapped a $163 per share price target on the stock, implying upside of roughly 25% from Monday's close. "Diamondback has unparalleled drilling economics from its ownership of royalties via Viper Energy Partners. And we see a long runway of core inventory across both flanks of the Permian," he said.
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