OX2 (OX2.SE; OX2:SS) – $2B market cap – Technicals: The stock broke out of a stage-one 16-week consolidation two
weeks ago. It has solid technical ratings including an A/D Rating of A and and RS Rating of 92. Ideal buy range SEK 62.6–
65.7. Company description: OX2 is a Sweden-based wind and solar farm developer. It sells all its projects and has a
portfolio of more than 17.4 GW at various stages of development. The company has a presence in Sweden, Poland,
Finland, and other countries. Its development portfolio comprises nearly 50% of offshore projects, 40% of onshore, and
10% of solar PV. Fundamentals: OX2’s Q4 and full-year 2021 results beat consensus on all key metrics. In Q4, it sold
483 MW (~4x versus Q4 2020) and constructed 1.33 GW, which drove revenue to grow 36% y/y to SEK 2.43B (beat
estimates by 6%) and operating income to grow 3x y/y to SEK 320M (beat estimates by 11%). The company acquired
227 MW in the quarter. EPS remained at SEK 0.87 (beat by 100%). Recent activity: On March 22, OX2 announced
plans to develop 300 MW in Italy, a region it entered in 2021. It plans to start with 30 MW of solar PV as a co-development
project with Avapa Energy Srl, a Bologna-based renewables company. On March 14, it acquired a 40 MW wind farm in
Finland, which includes rights to develop seven wind parks in the country. It also lodged an application for environmental
impact assessment on Natura 2000, a 5.5 GW offshore wind park in the Swedish Exclusive Economic Zone in the Baltic
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Sea.
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
J. B. Hunt Transport Services (JBHT) – $23B market cap – Technicals: The stock broke out of a stage-two 10-week
flat base this week. It has top-class fundamental ratings and decent technical ratings like EPS Rank of 92, SMR Rating of
B, RS Rating of 94, and A/D Rating of B-. Pivot range is $209–219. Company description: J.B. Hunt is a road
transportation company providing intermodal (JBI), dedicated contract (DCS), integrated capacity (ICS), final mile (FMS),
and truckload (JBT) services across the U.S., Canada, and Mexico. Q4 2021 revenue by business: JBI, 45%; DCS, 20%;
ICS, 21%; JBT, 8%; FMS, 6%. Recent activity: Yesterday, the company announced a joint effort with BNSF Railway to
raise the company’s intermodal capacity by 40% in the next three to five years to 150,000 containers.
O’Neil Energy/Material Weekly
Ameresco Cl A (AMRC) – $3B market cap – Technicals: The stock broke above its 200-DMA on high volume this week,
after five consecutive weeks of rally. It has top-class fundamental ratings and decent technical ratings like EPS Rank 81,
SMR Rating of B, RS Rating of 93, and A/D Rating of B+. Aggressive entry here on retake of its 100-DMA two days ago,
but be watchful of overhead through $85 (+11% away). Company description: Ameresco is a cleantech integrator that
designs, develops, owns, and maintains renewable energy assets. Adjusted EBITDA by business: energy assets, 49%;
projects, 40%; O&M, 9%; other, 2%. Pre-tax margin and ROE improved 200–300bps in the last five years to 7% and 13%,
respectively. As at the end of 2021, operating energy assets stood at 343MWe and assets in development, at 414MWe.
O’Neil Energy/Material Weekly
Continental Resources (CLR) – $22B market cap – Technicals: The stock is setting up to hit new highs following a high
volume bounce off its 50-DMA. It recently broke out of a stage-four 15-week cup-with-handle base. The stock has a solid
fundamental profile with EPS Rank of 71 and an SMR Rating of A, and a good technical setup with a high RS Rating of 98
(outperforming benchmark index) and an A/D Rating of B+ (good money flow). Accumulate on a break above its recent
high of $60.16.
O’Neil Energy/Material Weekly
Matador Resources (MTDR) – $5B market cap – Technicals: The stock is trading near the pivot of its recent stage-three
cup base. It has support at its 50-DMA and long-term support at its 200-DMA. The stock has a top-class fundamental profile
with EPS Rank 98 and SMR Rating of A, and a decent technical setup with an RS Rating of 98 and an A/D Rating of C-.
O’Neil Global Energy/Material/+ Weekly
Devon Energy Corp (DVN) – $36B market cap – Technicals: The stock is breaking into a new six-year high as it
bounced off its 21-DMA on high volume. It has strong fundamental and technical ratings: SMR Rating of A, EPS Rank 70,
RS Rating of 99, and A/D Rating of B+.
O’Neil Energy/Material Weekly
Several key global commodities have either reached new all-time highs or resumed prior uptrend, posting large gains
over the past few weeks. Below are weekly charts for Copper, Aluminum, Nickel, and Lumber. Also, the final chart is gold,
which has remained in a trading range for nearly a year-and-a-half, but appears set for a break in one direction, with bias
to the upside.
O’Neil Energy/Material Weekly
Cactus (WHD) – $2.8B market cap – Technicals: The stock has broken out of a stage-two 12-week cup base on above average volume and remains within the pivot range ($47-49). Technical setup is strong with RS line at a 52-week high, an RS Rating of 97, and an A/D Rating of A-. It has a healthy fundamental profile as well with EPS Rank 91 and SMR Rating of B
Sector Spotlight-Mining and Agrochemicals in Developed Markets
Sharp rotation globally in value-oriented sectors like Basic Material,
Consumer Staples, Energy, Staples, and Utility.
Basic Material stocks in developed markets are outperforming those in
emerging markets, as evident from the high RS Rating. Growth sectors
like Technology have breached support at their key moving averages.
O’Neil Energy/Material Weekly
ZIM Integrated Shipping (ZIM) – $6.83B market cap – Technicals: The stock broke out of its stage-two 11-week cupwith-handle base five weeks ago and has bounced from its 50-DMA over the past four days. The company has strong
fundamental ratings with EPS Rank of 84 and SMR Rating of A. Technical ratings are mixed, perfect RS Rating of 99 but
only moderately good A/D Rating of C+. Its RS line is at all-time highs. Company Description: ZIM is a global pure-play
asset-light container shipping carrier covering the world’s major trade routes. 2020 revenue by area: Pacific, 40%; Atlantic
Europe, 21%; others, 39%. Fundamentals: T
