With the summer season upon us, many investors are wondering whether we’re about to see the strong share prices of 2018. After all, with the markets still rebounding from October and December, it’s not unreasonable to think there are a few industries that could pop once more.
Now, while it’s hard to tell whether industries such as cannabis and tech will see the boosts of last year, there are a few industries that are practically guaranteed to see a boost this summer.
The fertilizer industry as a whole is in for a lot of growth this summer. China and India are increasing their demand for potash and natural fertilizer, which already makes up a large part of most company’s sales. As natural gas prices rebound, the nitrogen fertilizer business should improve as well, which will be great for fertilizer businesses.
As the largest crop-nutrient company in this industry, Nutrien (TSX:NTR)(NYSE:NTR) stands to gain the most in an incredibly fragmented retail industry. The company has been acquiring other businesses, setting themselves up to become even more of an international business.
The company is already strong, which is why analysts are predicting the stock to rise to $85 per share in the next 12 months — an increase of 30%. The company recently reported $41 million in earnings and almost $5 million in revenue for the second quarter. Investors now have a short opportunity to get in on stocks like Nutrien before they rise.
It’s no secret that the oil and gas industry, while still struggling, is on the rebound. There are many stocks out there investors could take advantage of, but it can be hard to tell what’ll do well this summer and what could lay flat.
One stock I’d recommend is Enerplus (TSX:ERF), a stock that analysts predict could rise to $15 or even $22.50 per share in the next 12 months — a huge increase from its share price at the time of writing of $11.50 per share. This stock also offers a rare opportunity, as the company is consistently undervalued, despite its strong balance sheet and cash flow, which has led to consistent stock repurchasing at increasing of its dividend.
As production and oil prices continue to grow, this stock could see some huge growth that could get it back to highs not seen since last summer. But if you want to take advantage of this industry, now is the time.
With a recession potentially in our future, analysts are recommending investors get defensive. And one of the best ways to get defensive are with metal stocks — specifically, gold. While an entire economy may go down, mining stocks are a great way to stay on top of any yield curve.
If you’re going to buy any mining stock, I’d recommend Wheaton Precious Metals (TSX:WPM)(NYSE:WPM). This company offers a hand in multiple mining industries and is a streaming business. This means the company doesn’t actually have to produce any metal itself but provides funding for miners to start up. It then buys their products at less than wholesale. This offers both the company, and investors, less risk.
And it’s worked for Wheaton. The company surpassed the $30 mark a few months ago and has since slumped a bit, but analysts believe it’ll get back up there and then some in the next 12 months, reaching perhaps $37 per share. So, again, there’s that opportunity to buy on a dip before a stellar summer.
These three industries provide a great opportunity for investors to buy on a dip and reap the rewards this summer. While you’re basking in the sun, you can remain confident your stocks are making you some major coin.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. Nutrien and Wheaton Precious Metals are recommendations of Stock Advisor Canada.