Metal stocks: Will they shine again? 6 counters can deliver over 32% returns, say analysts

Analysts are forecasting a comeback of Utilities stocks. IGL is back on the radar and so is NTPC. For the purpose of this report, we have selected stocks wherein the count of analysts is at least 15 and the average stock report plus score is a minimum of 8. The reason for having a minimum count of analysts for a particular sector is because higher coverage by analysts indicates higher institutional interest in individual stock. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Stock Reports Plus, powered by Refinitiv, has compiled a list of mean price targets for banking stocks based on the latest report dated April 25, 2023. The list includes stocks with a count of analysts evaluating them over the next 12 months, with a filter applied to exclude stocks with fewer than 10 analysts and upside potential of less than 20%. The list has been sorted based on the estimated potential upside, with City Union Bank Ltd showing the highest at 38.8%. ETPrime members have access to Stock Reports Plus.

While at this point of time, there are many reasons to be bullish. Right from the result of state elections to GDP numbers to trends in oil prices to US bond yields. However in bullish times there is just one reason to be cautious and that is valuations. At a time when stocks of companies which are under insolvency and where the bottomline has been in red for ages are flying as if there is no tomorrow. So while being bullish don't forget the fact that at the end of the day, fundamental matters and especially when one is looking to take exposure in mid-cap stocks, have more checks and balances by putting more filters. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.

Textile is one of the oldest industrial sectors in India. However, right from labour issues to smaller Asian countries becoming more competitive in terms of cost of production, different segments of the textile industry have faced more headwinds than tailwinds in their history of existence. This list is drawn from Stock Reports Plus, powered by Refinitiv, with over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum.

Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores. Simple average of the above-mentioned five component ratings is normally distributed to reach an average score.

One immediate impact of what the US federal reserve has done by pausing the interest rates is that some amount of risk on trade will be back on the table. This essentially means that new age companies, IT sector stocks and metals would be in focus. Of all the sectors it is metals which probably have more tailwinds not because of anything else but one simple reason, the Chinese economy getting back on track. If one looks at the reaction of the street to the US Fed announcement, it is the nifty metal index which after a gap up opening has performed better than many other indices in the first half of the trading session.

With some strength in the US dollar coming back, there is global trade which is getting started, metal prices have come down and sectors, which benefit from weaker local currencies have seen a recent bump up. The question is whether the domestic IT companies, which have been witnessing a phase of underperformance, especially the largecaps, will have any recovery due to the rupee factor? Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.

In a market in which stocks of companies undergoing bankruptcy are quoting at half billion market cap, finding stocks which have value is probably not something which is an easy thing. It is time when the choice has to be made between fairly priced or overpriced. Given the sentiments, investors are more prone to buying stock first and then looking at what is the business of the company, that too is done by very few. It is exactly the time and sentiment when it becomes extremely important to go back to the basic principle of investing. Put more checks and balances before you buy the stock and the reason for buying that stock at that point of time. So as you stay bullish, be selective.