What stocks to buy right now?

It has been more than a week since the Russian invasion of Ukraine began, with no end in sight despite recent peace talks.

Fighting between Russian and Ukrainian forces has intensified – over 2,000 Ukrainian civilians have been killed so far, Putin has put Russia’s nuclear force on high alert and confirmed he will continue ‘without compromise’ its offensive against the “nationalists” of Ukraine, Russian forces seized Europe’s largest nuclear power plant in Zaporizhzhy.

Several agricultural and energy commodities have reached record levels since the start of this conflict, intensifying inflationary pressures on most economies. Central bankers around the world are beginning to end their ultra-loose monetary policy by raising – or planning to raise – their main interest rate to bring inflation down.

But with so much uncertainty about the war and its aftermath, growth prospects and inflationary pressures, and rising interest rates, stock markets tumbled around the world, offering bargains on stocks of quality.

Let’s take a look at some of the actions you might consider right now.

Defense and cybersecurity values

The armaments, defense and cybersecurity sectors all benefit from the conflict between Ukraine and Russia, as most economies increase their military spending to be able to better protect themselves via military and intelligence products and services. These companies could continue to receive orders if military tensions escalate in Eastern Europe.

Actions to watch in this category

  • Raytheon Technologies.

  • Northrop Grumman.

  • Lockheed Martin.

  • General dynamics.

  • Thales.

  • Dassault Aviation and Dassault Systems.

  • Leonardo SpA.

  • Hensoldt AG.

  • Rheinmetall AG.

  • Bae Systems PLC.

  • Chemring Group PLC.

  • Qinetiq Group PLC.

  • Ultra electronic.

  • Palo Alto Networks Inc.

  • CrowdStrike Holdings, Inc.

  • Fortinet inc.

  • Mandiant inc.

  • Black streak.

Energy values

Because the conflict between Ukraine and Russia disrupts the supply of oil and gas to Russia, the prices of these energies have exploded since the start of the conflict. Oil hit its highest level in nearly a decade with WTI up almost 60% since January, while natural gas futures indicate there is still room for upside after the raw material reached record highs.

While this has been good for traditional oil and gas stocks, renewables have also boomed. As this situation shows Europe’s overreliance on Russian energy raw materials, it could accelerate the need for 1) diversification of energy supplies and 2) more renewable energy capacity.

Actions to watch in this category

  • ExxonMobil.

  • Devon Energy.

  • Conoco Phillips Company.

  • Chesapeake Energy Corporation.

  • Chevron Company.

  • Shell.

  • BP.

  • TotalEnergies.

  • Sunrun.

  • Sunnova Energy International.

  • Sunlight financial.

  • Enphase Energy Inc.

  • SolarEdge Technologies Inc.

  • Clearway Energy.

  • Brookfield Renewable Power.

  • NextEra Energy.

  • First Solar.

  • Orste.

  • Vesta.

  • Nordex.

  • Siemens Gamesa.

Financial stocks

Certain financial stocks are suffering from the general climate of uncertainty, between the economic and financial sanctions against Russia and the extreme geopolitical tensions in Eastern Europe.

This is particularly true for Western European banks exposed to Russia such as Société Générale and UniCredit. First, because Russian financial assets have deteriorated sharply. Second, because banks now face increased operational risk to ensure their operations comply with imposed sanctions.

Banks generally perform poorly during recessions and uncertain times because they are sensitive to the economy. However, when the conflict ends and the consequences of the war on growth may be easier to measure, banks could perform better.

Not to mention that with rising inflation, central banks around the world are planning to raise their interest rates. And financial institutions generally benefit from rate hikes because higher interest rates usually mean that their profitability will increase.

Actions to watch in this category

  • Goldman Sachs Group Inc.

  • Bank of America Corp.

  • Wells Fargo & Co.

  • Citigroup Inc.

  • JPMorgan Chase.

  • BNP Paribas.

  • HSBC Holdings.

  • BNP Paribas.

  • Agricultural credit.

  • Santander.

  • Lloyds banking group.

  • Barclays.

Automobile and vehicle parts inventory

Automakers are facing a new supply chain crisis with the war in Ukraine, as major suppliers to the industry have had to shut down projects near the conflict zone – not to mention the trade restrictions and sanctions that impede the movement of parts and cars to and from Russia.

Many European automotive markets are also having to deal with the fact that Russia, which was seen as a growth market, will no longer be a market to focus on due to sanctions and decisions to halt all business activities with the country. , which means they’ll face weaker sales in the future.

Still, these companies might perform better over the longer term, and now that they’ve lost ground, it might be time to choose a company that you think could outperform the market over time.

Actions to watch in this category

  • Toyota Motor Corporation

  • Ford Motor Co.

  • Hyundai Motor Co.

  • Volkswagen AG

  • Daimler S.A.

  • Renault

  • Faurecia

  • Valeo

  • Stellantide

  • Fujikura Ltd.

Last word

Being an investor in times of crisis is not always easy. However, market declines should always be considered as opportunities for you to rebalance your portfolio to better diversify, take advantage of price cuts and bet on buoyant sectors adapted to the current environment.

Also, remember not to panic and always keep your financial goals in mind, especially if you are a long-term investor.

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