Author: Kenley Scott

Kenley Scott is a senior equity analyst and sector strategist covering the APAC region and the Energy sector. He is a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Kenley also writes the Global Sector Summary, part of the Sector Strategy service, which identifies emerging sector strength and weakness across 46 countries every week. After working as a commodities broker, Kenley joined the firm in July 2006. He has a B.S. in Statistics from the University of California, Riverside and also holds a Series 65 securities license.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Capstone Copper (CS.CA, $7.3B market cap)

TECHNICALS

  • The stock is actionable after breaking out of a stage-two double-bottom base with a pivot of CAD 12.78.
  • High Composite Rating of 96. EPS Rank 66 is expected to improve further on the back of triple-digit earnings growth in 2025 and 2026. SMR Rating
    of B driven by margin recovery and improving ROE, and an accelerating sales growth.
  • Technical ratings are solid with an Up/Down Volume ratio of 1.2, and an increasingly positive Acc/Dist Rating. Industry Group Rank has remained
    within the top 15 in the last two months, which indicates high investor interest in the group.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

China Molybdenum (CMOL.HK; 3993 HK; $9B market cap)

 

TECHNICALS

  • The stock is actionable after breaking out of a stage-two consolidation base with a pivot of HKD 17.8.
  • High Composite Rating of 98 and EPS Rank of 98 driven by solid earnings growth over the last three quarters. Strong forward earnings estimates.
  • Technical Ratings are solid with a rising Up/Down Volume ratio, and an Acc/Dist Rating of A. Industry Group Rank has remained within the top 3 in the last two months, which indicates high investor interest in the group.
  • Institutional sponsorship has been sequentially rising over the last four quarters.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Arcelor Mittal (MT.NL, $34B market cap)

 

TECHNICALS

  • The stock is trading 1% to the pivot of a stage-two flat base. Buy on a break above the pivot of €35.5.
  • High Composite Rating of 92. SMR Rating and EPS Rank are expected to improve as sales and profitability improve in the upcoming quarters.
  • Strong technical profile with good money flows. RS line is at a two-year high with a strong RS Rating of 94. A near-best Industry Group Rank of four indicates high investor interest in the group.
  • Institutional fund ownership has been sequentially improving over the last four quarters.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup
Ryanair Holdings (RYA.IE) – $32B market cap; $67M ADV
TECHNICALS
• The stock is trading in the pivot range of a stage-two 11-week cup base. It is 2% off highs with support near its rising 10-DMA (-2%) followed by 21-DMA (-4%).
• Strong fundamental profile: EPS Rank 97 and best-in-class SMR Rating of A. Double-digit earnings growth estimates for FY26 and FY27.
• Strong technical profile: The stock has been under accumulation for the past seven weeks, indicating healthy money inflow. Constructive Up/Down Volume ratio of 1.0 indicates positive demand for the stock. RS line is in an uptrend, with an RS Rating of 81.
• Institutional sponsorship more than doubled to 1,086 funds as of September.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Delhivery (DE2.IN; DELHIVER IN; $4B market cap)

 

TECHNICALS

  • The stock is forming the right side of a stage-one flat base and is trading 3% to the pivot of INR 489. Long positions can be taken on a break above the pivot on high volume.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

PTC Industries (TUX.IN; PTCIL IN) – $2.9B market cap; $4.4M ADV

 

TECHNICALS

  • The stock is forming the right side of a stage-one consolidation base with pivot 6% away. Support is near its rising 10-DMA (-2%), followed by the 21-DMA (-5%).
  • Strong fundamental profile: EPS Rank 91 and SMR Rating of B. Strong earnings growth estimates for FY25 and FY26.
  • Strong technical profile: The stock has been under accumulation over the past seven weeks, indicating healthy money inflow. A constructive Up/Down Volume ratio of 1.8 indicates positive demand for the stock. RS line is in an uptrend, with an RS Rating of 82.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Charts of the Week

Over the last three months or so, the strongest groups across the entire market have come from the basic material and energy sectors. Precious metals and miners, uranium/nuclear, rare earths, wind, solar, and overall clean energy spaces have all surged. Gold/silver and miners are at all-time highs and uranium/nuclear is enjoying its best period in recent history. Rare earths, solar/wind, and clean energy groups are still very far from all-time highs but are enjoying their best period since 2020-2021. All of these groups with the exception of wind are very extended from their most recent bases, and as such we suggest looking to reduce individual names which are also extended from bases. A few examples which are very stretched include BE, OKLO, UUUU, LEU, FLNC, CDE, IAG, HBM, KGC, NXT, USAR, and AMRC. Fewer names are just coming out of bases, but there are a few including MP, OLA, SMR, ARRY, and NRG.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Emerald Resources (EMR.AU; EMR AU) – $2.2B market cap; $11.2M ADV

 

TECHNICALS

  • The stock broke out of a stage-one 18-week cup base. It is trading near its all-time high. Support is near its rising 10-DMA (-6%), followed by its 21-DMA (-12%).
  • Good fundamental profile: EPS Rank 70 and SMR Rating of B. Strong earnings growth estimates for FY25 and FY26.
  • Strong technical profile: The stock has been under accumulation for the past six weeks, indicating healthy money inflow. Constructive Up/Down Volume ratio of 3.1. RS line rose sharply, with an RS Rating of 69.
  • Institutional sponsorship increased sharply to 211 funds (+25% y/y) as of June 2025.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Williams Companies (WMB, $76.4B market cap; $415M ADV)

 

TECHNICALS

  • The stock is 1% away from the pivot of a stage-one flat base. Support is near its 10-DMA (-4%) followed by its 21-DMA (-5%).
  • Good Fundamental Profile: EPS Rank of 77 and best-in-class SMR Rating of A.
  • Improving Technical Profile: Acc/Dist rating turned positive in the last three weeks indicating healthy money inflow. Up/Down Volume Ratio of 1.0 indicates positive demand for stock. RS line is trending upwards, with an RS Rating of 70.
  • Institutional sponsorship has increased to 2,410 (+25% y/y) funds as of June.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

KEY FUNDAMENTAL POINTS

Solaris Energy Infrastructure operates a dual-segment business model providing specialized, equipment-based solutions to the energy and data center industries.
The company reports through two segments:
Solaris Power Solutions (51% of Q2 FY25 revenue) supplies mobile, gas turbine–based “power-as-a-service,” offering turnkey generation, distribution, and operations for data centers, energy, and industrial customers.
Solaris Logistics Solutions (49% of Q2 FY25 revenue) designs and manufactures all-electric equipment and provides logistics services to manage proppant, water, and chemicals for oil and gas well completion.
Growth is underpinned by accelerating demand from AI-driven hyperscale data centers, where power requirements per campus now exceed 1 GW. Solaris is positioned to benefit, with data center contracts already representing 67% of its pro forma contracted fleet capacity.
A key near-term catalyst is the contracting of the ~25% of Solaris’s 1.7 GW pro forma fleet still available for delivery beginning in H2 FY26.
Management has expressed high confidence in securing this capacity, which is critical to achieving its run-rate Adjusted EBITDA target of $575–$600M on a consolidated basis and $440–$465M net to Solaris once the full fleet is deployed by FY27.