Yahoo Finanza Big Money Invests in LyondellBasell
And the specialty chemical producer could jump even more due to strong earnings and an impressive dividend. But another likely reason is Big Money lifting the stock.
LyondellBasell Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And LyondellBasell has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals LYB has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
This year alone the stock attracted five Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
Year-to-date outperformance vs. Materials Select Sector SPDR ETF (+22.4% vs. XLB)
Outperformance is important for leading stocks.
LyondellBasell Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, LyondellBasell has been growing sales and earnings at double-digit rates. Take a look:
1-year sales growth rate (+66.3%)
3-year EPS growth rate (+72.9%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, LYB recently became a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
LYB has a lot of qualities that are attracting Big Money. In fact, it just made the Top 20 report for the first time on 05/31/2022…and gained 1.9% since. Big Money may have a new gem on its hands. The blue bar below shows when LyondellBasell was a top pick:
Source: www.mapsignals.com
It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if LYB makes additional appearances in the years to come. Let’s tie this all together.
LyondellBasell Price Prediction
The LyondellBasell rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a more than 4.2% current dividend, including a special one-time dividend of $5.20 per share. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in LYB at the time of publication.
Learn more about the MAPsignals process here.
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This article was originally posted on FX Empire
