Analysts are Revising Ratings for These 10 Commodity Stocks

Published August 9, 2022 at 4:48 pm EDT Updated September 7, 2026 at 2:22 pm EDT

In this article, we will take a look at the 10 commodity stocks that received updated recommendations from analysts.

Most commodity stocks generally perform well even when the overall economy and consumer sentiment are dwindling. That’s because these stocks pass on the impact of higher costs to consumers. Therefore, many investors turn to commodity stocks during uncertain economic times.

Recently, analysts revised their recommendations for several commodity stocks, including Chevron Corporation (NYSE:CVX), Corteva, Inc. (NYSE:CTVA) and EOG Resources, Inc. (NYSE:EOG).

In addition, agricultural fertilizers maker CF Industries Holdings, Inc. (NYSE:CF) and specialty materials company Celanese Corporation (NYSE:CE) also received updated recommendations from analysts. We will discuss the reasons behind the new recommendations for these companies in the remaining article.

Photo by Francisco Fernandes on Unsplash

10. Coeur Mining, Inc. (NYSE:CDE)

Number of Hedge Fund Holders: 20

Coeur Mining, Inc. (NYSE:CDE) received a downgrade from Canaccord on Friday, August 5, 2022. The research firm lowered its ratings for the precious metals mining company from “Buy” to “Hold,” following its second-quarter results.

Canaccord analyst Dalton Baretto referred to the elevated technical and financial risks that could hurt Coeur Mining, Inc. in the coming quarters. Baretto also cut his price target for Coeur Mining from $3.75 per share to $3.50 per share.

Meanwhile, Coeur Mining, Inc. recently announced weak financial results for Q2. The company reported an adjusted loss of 5 cents per share on revenue of $204 million. Moreover, cash flow from operating activities declined to $23 million, from $58.1 million in the same period last year.

9. MDU Resources Group, Inc. (NYSE:MDU)

Number of Hedge Fund Holders: 26

BofA lowered its ratings for MDU Resources Group, Inc. (NYSE:MDU) from “Buy” to “Neutral” on Friday, August 5, 2022. BofA analyst Dariusz Lozny was moved by the company’s announcement to spin off its subsidiary Knife River.

Knife River is the construction arm of MDU Resources Group, Inc.. It is primarily engaged in providing construction materials in the U.S.

Last week, MDU Resources Group, Inc. announced that it will separate Knife River from the company. The planned spinoff would create two independent firms. The senior management thinks the new firms would grow in a better way and increase shareholder value.

8. Transocean Ltd. (NYSE:RIG)

Number of Hedge Fund Holders: 30

Transocean Ltd. (NYSE:RIG) received an upgrade from Capital One on Tuesday, August 2, 2022. The research firm increased its ratings for the offshore drilling contractor from “Equal-Weight” to “Overweight,” while keeping a price target of $4.50 per share for the stock.

The upgrade came a day after Transocean Ltd. announced better-than-expected financial results for the second quarter. It reported a loss of 10 cents per share, narrower than a loss of 26 cents per share in the year-ago period.

Revenue for the quarter increased to $692 million, from $586 million in the comparable period of 2021. Analysts expected Transocean Ltd. to report a loss of 13 cents per share on revenue of $691.65 million.

7. LyondellBasell Industries N.V. (NYSE:LYB)

Number of Hedge Fund Holders: 32

Vertical Research downgraded LyondellBasell Industries N.V. (NYSE:LYB) from “Buy” to “Hold” on Monday, August 1, 2022. Vertical Research analyst Kevin McCarthy expects LyondellBasell’s margins to stay under pressure in the coming quarters.

McCarthy also thinks that the valuation of LyondellBasell Industries N.V. compared to its commodity peers is less attractive. He set a price target of $96 per share for LyondellBasell stock.

Like LyondellBasell Industries N.V., analysts also revised their recommendations for Chevron Corporation, Corteva, Inc. and EOG Resources, Inc..

6. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Holders: 32

Duke Energy Corporation (NYSE:DUK) received a downgrade from Credit Suisse on Friday, August 5, 2022. The research firm lowered its ratings for the electric power and natural gas holding company from “Outperform” to “Neutral,” citing a downside to the consensus earnings forecast.

The revised rating came a day after the company’s Q2 results. Duke Energy Corporation earned $1.14 per share on revenue of $6.69 billion in the second quarter. This compares to earnings of 96 cents per share and revenue of $5.76 billion posted by Duke for the comparable period of 2021. The results were also better than the consensus estimates.

Separately, Duke Energy Corporation recently announced that it is looking to spin off its commercial renewables business, which includes 5 GWs of solar and wind farms spread across the U.S.

The segment is among the country’s largest solar and wind businesses. However, its accounts for less than 5 percent of Duke’s consolidated earnings. Duke Energy Corporation plans to use the potential sale proceeds to pay back debt.

5. Celanese Corporation (NYSE:CE)

Number of Hedge Fund Holders: 36

Citi lowered its ratings for Celanese Corporation from “Buy” to “Neutral” on Monday, August 1, 2022. The research firm also cut its price target for the specialty materials company from $143 per share to $118 per share.

Citi analyst P.J. Juvekar pointed toward a slowdown in end markets like construction and housing and how it could impact intermediate firms like Celanese Corporation. Juvekar also decreased his estimates for 2023, citing elevated energy prices and a slower recovery in certain markets.

Earlier this year, investment management firm Vltava Fund also mentioned Celanese Corporation in its first-quarter 2022 investor letter. Here’s what the firm said:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).

Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of it business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”

4. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 39

Corteva, Inc. received an upgrade from JPMorgan on Monday, August 8, 2022. The research firm increased its ratings for the agricultural chemical company from “Neutral” to “Overweight,” citing multiple tailwinds for the stock.

JPMorgan analyst Jeffrey Zekauskas thinks that Corteva, Inc. could raise the prices of its seed products next year given the strength of corn and soy rates.

The upgrade came a few days after Corteva, Inc. lifted its sales outlook for 2022. The company now expects to generate revenue in the range of $17.2 – $17.5 billion for the full year, compared to its earlier projection of $16.7 – $17 billion.

Separately, Corteva, Inc. also appeared in the first-quarter 2022 investor letter of investment management firm Aristotle Capital Management. The letter stated:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”

3. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 49

TD Securities upgraded EOG Resources, Inc. from “Hold” to “Buy” on Friday, August 5, 2022. The upgrade came a day after the Houston-based energy company beat the Q2 profit expectations and declared a special dividend of $1.50 per share.

EOG Resources, Inc. reported adjusted earnings of $2.74 per share for the three months ended June 30, up from $1.73 per share for the comparable period of 2022. Analysts were looking for earnings of $2.67 per share.

Earlier this year, investment management firm Oakmark Funds also discussed EOG Resources, Inc. in its first-quarter 2022 investor letter, stating:

“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

Chevron Corporation received an upgrade from Societe Generale on Thursday, August 4, 2022. The research firm raised its ratings for the energy giant from “Hold” to “Buy” and lifted its price target for the stock from $175 per share to $190 per share.

Societe Generale analyst Irene Himona referred to Chevron’s Q2 earnings that beat consensus with a big margin. Chevron Corporation recently delivered solid financial results for the second quarter, driven by higher prices of oil and natural gas during the quarter.

Chevron Corporation reported adjusted earnings of $5.82 per share on revenue of $68.76 billion. On the other hand, analysts expected Chevron Corporation to earn $5.10 per share on revenue of $59.29 billion.

1. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 67

Citi upgraded CF Industries Holdings, Inc. from “Neutral” to “Buy” on Wednesday, August 3, 2022. The research firm also raised its price target for the manufacturer of agricultural fertilizers from $99 per share to $117 per share.

Citi analyst P.J. Juvekar thinks that agriculture stocks, including CF Industries Holdings, Inc., will perform well despite the decelerating economic environment. Juvekar referred to the Russia-Ukraine war that has sharply increased the demand for agricultural inputs around the world.

Separately, investment management firm Carillon Tower Advisers also talked about CF Industries Holdings, Inc. in its first-quarter 2022 investor letter, stating:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. CF Industries (NYSE:CF) manufactures and distributes nitrogen fertilizer. The stock rose as Russia’s invasion of Ukraine accelerated already rising fertilizer prices.”

You can also take a peek at 10 Best Natural Gas Stocks to Buy Now and Jim Cramer Recommends These 10 Stocks For Recession.

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