S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

Natural Skin Care – Why Bother?

What is Natural Skin Care?Natural skin care is normally understood to refer to those products characterised by the absence of synthetic ingredients, such as preservatives, petrochemical derivatives, mineral oils, fragrances and harsh detergents.Typically, natural skin care products are made using natural ingredients such as plant oils, essential oils, herbal and floral extracts (both aqueous and waxy), that have been prepared in the “old fashion way”, without chemical processing or modification. Sometimes, ethically produced animal derivatives, such as beeswax, may also be present in natural skin care (1).Natural skin care made with approved organically produced raw materials and practices can be organic certified by the relevant organic organizations.Unfortunately, there are numerous products in the market that claim to be either natural or that are cleverly marketed for their singular botanical extract or vitamin, amongst a dense cocktail of synthetic ingredients. These are the “pseudo-natural” products (1). To help clarify if a skin care product is really natural, it is recommended to read the ingredients section in the label.Why is natural skin care better than synthetic?Products that are made from ingredients that have been extracted naturally from sustainably maintained plants and crops manifest the essence, the energy, the qualities and the benefits of the source raw material, in ways that synthetics ingredients do not.Simply put, the geographical location, the soil and the water the plants are grown in, as well as the sun exposure, the seasons and harvesting times contribute to the mature plants and crop yields in unique ways.These factors cannot be mimicked in the laboratory or controlled nurseries, as the natural exposure to the environmental conditions facilitates development of subtle differences in the plants. These are then reflected in the quality of the extracted oils, as well as on their specific composition, properties and benefits.Besides, synthetic ingredients are produced in laboratories using scientific, yet often hazardous processes involving the use of carbon dioxide, propylene glycol or hexane based methods. Although these chemical agents may only be present is trace amounts in the final synthesised ingredients, it is unclear what effect they might have as they accumulate in our bodies, over a prolonged period of exposure (2).Of course, some of the natural extracts and oils may also be affected or destabilised by the natural extraction methods used in their preparation. For these reasons manufacturers of natural skin care products give great consideration to the sourcing of their raw materials and how natural ingredients are prepared from the latter.What is Special About Plant Oils?Plant oils are made up of complex mixtures of different fatty acids (lipids). It is the specific mix and ratio of these fatty acids that determines the unique character of any oil. In addition to the main lipid fraction, there are also other very important bioactive substances such as the phospholipids, phosphatides, phytosterols, phytoestrogens, isoflavones and vitamins. These bioactives are known as the unsaponifiable fraction of the oil. They normally are present is small amounts and are unique signatures of the oils (3).To demonstrate how the oil composition determines the difference in functional properties, the typical fatty acid profile of apricot kernel and borage oils as described in Kusmirek (3) are compared below.1 – Apricot kernel oil is a mixture of 58 – 74% of oleic acid, 25 – 30% of linoleic, with the remainder 4 – 7% composed of palmitic, palmitoleic, stearic and alpha-linolenic acids. The unsaponifiable content is approximately 0.5 -0.75%.2 – Borage oil is a mixture of 30 – 40% linoleic acid, 8 – 25% gamma linolenic acid, 15 – 20% oleic acid, 9 – 12% palmitic acid, 3 – 4% stearic acid, 2 – 6 % eicosenoic acid. The unsaponifiable content is approximately 1%.Apricot kernel oil is a great nourishing and emollient oil that is easily absorbed. These properties are attribute to the high percentages of oleic and linoleic acids. Furthermore, apricot kernel oil is also an excellent source of vitamin A, present in the unsaponifiable matter.Borage oil is known for its nourishing and penetrating properties attributed to the presence of linoleic and oleic acids, but in addition the high content of gamma-linolenic acid confers its regenerating and firming qualities.The differences in the properties of apricot kernel and borage oils, as well as those of other oils not discussed here, demonstrate the importance to blend various plant oils for optimal skin care, so that the skin is adequately fed, continuously hydrated, smooth feeling and equipped to regenerate efficiently. These are essential to promote a healthy skin glow, regardless of age.But, even if the synthetics oils were to reproduce the exact mixes and ratios of plant derived fatty acids and unsaponifiables, it would be nearly impossible to mimic into the synthetic oils the contribution from the energy that is held in the plant, from which the equivalent natural oils were extracted. Thus, natural ingredients are different from their synthetic equivalents.What about essential oils and other botanicals?Essential oils are concentrated extracts of aromatic and other volatile plant substances, sometimes containing growth factors known for their regenerative properties. They are the source of the scents of nature and may be used to add scent to natural products. Because of their concentrated nature and high cost to produce, only small amounts of essential oils are used in natural skin care. Besides, as essential oils may be irritating to the skin, they should never be used undiluted.In contrast to oils, floral/herbal waters are the aqueous extracts from flowers/plants. Naturally produced oils and aqueous extracts are made through distillation, steaming, or infusion techniques. These are slow and often inefficient processes that add to cost. But, the products generated using non-synthetic approaches are much safer and healthier than those extracted with the use of artificial methods.Is there a problem with the variation in natural ingredient batches?The quick answer is NO!Certainly, naturally produced ingredients show “batch variation”, but this is part of nature, demonstrating the cycles of change. These are natural bio- rhythms, and as with everything in nature sometimes there is abundant sunshine, other times there are only clouds. Naturally, these weather changes affect the growth patterns of the plants.This means that periodically some of the natural ingredients may contain a slightly higher or lower percentage of one or even several of the components, but over a period of time, these variations balance out. The key point is that the overall effect of using natural ingredients is still beneficial in the long run.Supporters of the mainstream cosmetic industry object to this variation associated with natural ingredients. Instead they advocate that synthetic ingredients are a far better option to manufacture any products, including skin care. They argue that synthetic ingredients are scientifically controlled, exacting, standardised and can be made in a totally reproducible manner. But, at the end of the day…they are not natural!What about preservatives, stabilisers and emulsifiers?Sure, preservatives and stabilisers extend the shelf-life of any product, natural and synthetic (1,2,4). Because of this recognition European and USA organic and regulatory organisations have approved the use of certain preservatives for which there has been long standing accumulation of safety and toxicity data, e.g. blends of dehydro-acetic acid. These preservatives were designed to replace the paraben family of preservatives in the personal care products. Though natural products ought to have the minimal necessary amounts of preservatives.Without a doubt, preservatives such as the parabens, the phenol derivatives and the denatured alcohols are extremely effective, as they increase the product shelf-life almost indefinitely! But, they are also known to interfere with hormone balance and can be allergenic (1,2). Clearly, they are not health promoting substances. As they are readily absorbed by the skin and are long lasting, their long-term effects on distal organs are unknown, and thus undesirable.Interestingly, vitamin E is a powerful natural anti-oxidant, as well as a fantastic natural preservative for oil blends and emulsified oils (2). Extracts of rosemary and oregano are also considered natural preservatives because of their anti-bacterial properties (2). However, these are not frequently used as they impart a strong scent and may give rise to some skin irritation. This is an example of where caution has to be exercised with natural substances. Though these occurrences are more the exception than the rule.Alginic acid obtained from brown algae is sometimes used as a stabiliser (4). But, allantoin, an extract from comfrey root is a more suitable natural stabiliser for skin care preparations (2).Emulsifiers are substances that help to prevent the parting of the of oil and water fractions in a cream or lotion. In natural skin care these include lethicin and the wax cetearyl alcohol (1,2,4). Lecithin is extracted from soya beans and is known to soften the skin and help penetration of the skin care product. Cetearyl alcohol is a mix of the high melting point cetyl and stearyl fatty acids derived from either animal or plant fats. In natural skin care it is preferable to have plant sourced cetearyl alcohol. Apart from its great emulsifying properties, this fatty acid mix facilitates maintenance of skin hydration.So, what’s he take home message?Regardless of some of the limitations of natural skin care, the natural ingredients in these products are still far more beneficial than those that are completely synthetic. Synthetics are unable to reproduce the unique heterogeneous and nourishing character of the natural extracts and oils, as discussed above.Technology aside, it is also clear that there are major financial gains for manufacturers to use mostly, if not strictly synthetic ingredients. The cost of producing natural skin care products is of necessity higher than that of synthesising vast quantities of easy to make and use synthetic ingredients. Compared to their equivalent natural counterparts they afford versatility on the production line, on the shelf-life, as well as on profitability.These attributes of scientifically designed skin care in the 20th century satisfied the increasing market desire for youth elixirs. However, since the 1960′s growing conscious awareness of what was in our food, demand for natural and organic products increased. This requirement extended to the personal care sector also. Indeed, the natural and organic cosmetics market has been the fastest growing sector of the personal care products since the late 1980′s.Fortunately nowadays, the driver is not purely for skin care that makes you look good, but for products that can achieve this goal with respect for human beings and the environment.Bibliography1. Morrison, K & Whelligan, F. 2007. About Face. Random House NZ. Auckland.
2. Hampton, A. 1987. Natural Organic Hair and Skin Care. Organica Press. Tampa, Fl.
3. Kusmirek, Jan. 2002. Liquid Sunshine – Vegetable Oils for Aromatherapy. Floramicus. Somerset. England.
4. Winters, R. 1994. A Consumer’s Dictionary of Cosmetic Ingredients. Three Rivers Press. NY.

What Is Commercial Construction?

The term commercial construction is used to refer to any kind of construction project where the eventual outcome will be a commercial property rather than a residential property or industrial property. It can include warehouses, hospitals, sports centres, shopping centres and hotels, as well as some types of reconstruction and refurbishment of historic buildings. One commercial construction firm may not necessarily be responsible for all aspects of the creation of a commercial property from conception to completion, and a variety of different people may be involved, however some well-established construction firms are able to take complete control of all aspects of the construction process.Commercial properties differ from residential properties because commercial properties are not intended as full time homes, and therefore the needs, rules and regulations connected to commercial properties differ from those associated with residential properties. Those who are wishing to build a commercial property, or adapt a former residential property into a commercial property are usually required to get planning permission in order to be able to do this. If special planning permission is required, it must be properly obtained before any physical work is carried out, or else the owner may be required to undo or remove all the work which has been carried out.There are different types of commercial construction companies available. Some construction companies will only be contracted once planning permission is received, and once all surveying etc has been called out at the place where the construction will take place. These companies will work according to the pre-approved architectural blue prints which have been commission by outside investors who wish to develop or build a property for commercial use. Other types of commercial construction company will take charge of the whole process from conception to completion, having either designed and funded the project themselves, in the hope that they will be able to sell or lease the property when it is completed, or having been contracted out by a private investor.It is one of the construction company’s responsibilities that all commercial properties adhere to all local commercial building regulations, and if any of these regulations are not adhered to fully, then the construction company may be liable for any damages. In recent years, building regulations for commercial properties in many countries have been extended to take into account changing environmental standards.As well as being partial responsible for the health and safety of those who will use the commercial property once it is completed, commercial construction companies must take partial responsibility for the health and safety of its own workers. Any building site is a dangerous place to be, so it is important that all workers in construction companies understand the rules and regulations which are put in place and designed to help to keep them safe. All construction workers should be taught the importance of wearing the correct protective clothing whilst they are on the building site or using building equipment: hard hats and high visibility jackets can help to save lives.