Monday 3 January 2022

Publicly Traded Materials Stocks - 2021 Performance and Outlook

Hello and welcome to the first post of this New Year 2022!

Materials companies were hit hard in 2021: from supply chain disruptions due to Covid-crisis, the North American winter storm (“Uri”) resulting in force majeure at chemical companies in the Texas region, the Suez Canal blockage after the grounding of Ever Given and global inflation (Eurozone around 4%; North America around 7%).

However, looking at the financial markets, things were booming. The S&P 500 finished 2021 with a gain of 27% for the year and the NASDAQ composite increased 21.4% in 2021. The Vanguard Materials Index Fund ETF made also 26% in 2021. Altogether, the 11 main sectors were up double-digits (Energy sector + 46%, Real Estate +41%, Technology +33%, Financials +32%, Consumer Discretionary +27%, Utilities +14.1%, Consumer Staples +14.3%, Communication Services +15.1%, and Industrials +19.5%).

How did the 30 major material stock companies perform in 2021?

25 out of the 30 stocks could make gains for their shareholders (date of estimation: 02.01.2022) and this is seven more compared to 2020. AdvanSix (Nylon 6 producer) and Rogers Corp were in the lead with high double digit gains and above.

Performance of 30 major material stocks

As in the beginning already pointed out, inflation is on the horizon worldwide and prices need to be balanced, together with optimizing the assets. Demand on resin products will keep going, despite new Corona-variations. The industry has already two years’ experience to deal with this pandemic scenario making them more confident to handle the upcoming demands. 

Also interesting to see where analysts see the potential this year: Energy, Communication Services, and Technology (62%) are on the buying list. Consumer Staples, Utilities, and Financials have a more bearish buying outlook.

Thank you for reading and #findoutaboutplastics





[2] Factset Earnings Insight

No comments:

Post a Comment