|
Through the Fly's Eyes: Lower Oil Plays
From Larry Ramer of Theflyonthewall.com
A Few Ways to Play Lower Oil Prices
With oil prices falling below $70, some investors may be looking for companies that could benefit from lower fuel prices. One good play on dropping energy prices is Domino’s Pizza (DPZ), because of its high volume of deliveries. Papa John’s (PZZA) would seem to fit in the same category.
Online retailers, which deliver their products, may also be a good way to play dropping fuel costs. Of course, Amazon (AMZN) and eBay (EBAY) immediately come to mind. However, lesser-known names in the online retail world include Overstock.com (OSTK), which specializes in discount products, and PC Mall (MALL), a computer supplier that ships most of its products.
Old-fashioned retailers, such as Macy’s (M), Nordstrom (JWN) and Home Depot (HD) would also benefit from long-term lower fuel costs, since products must be shipped to their stores. Car makers that rely heavily on SUVs and trucks, such as Ford (F) and GM (GM), would also see their bottom lines improve if fuel prices stay lower, as demand for their large vehicles pick up.
Of course, airlines, whose shares have already been jumping over the last couple of days, are key beneficiaries of reduced oil prices. Plastics are made with oil, so plastic makers, such as General Electric (GE) and AEP Industries (AEPI) would also benefit from a trend of lower oil prices.
-
Theflyonthewall.blog
|
