Not every stock you buy is exciting.
They can’t all be the latest meme stock or a chance to target profits in AI’s ongoing mega trend.
If you look at your portfolio right now, I’ll bet one word best describes most of your investments … “boring.”
By boring, I mean companies that don’t have five pages of news when you search their ticker on Google.
They aren’t exciting or generate a ton of buzz … they just are.
And that’s OK.
There’s nothing wrong with steady-Eddie stocks that you don’t read about on a daily basis.
Some of the most “boring” stocks out there can yield the biggest returns. Here are some examples:
In May 2022, I wrote about Spouts Farmers Market (Nasdaq: SFM), an organic grocery store chain. Since I shared the stock, it’s jumped 190%.
Bel Fuse Inc. (Nasdaq: BELFB) makes electronic components used in telecom, aerospace and other sectors around the world. Since I wrote about this stock in August 2022, it’s moved 137% higher.
Then there’s U.S. Lime and Minerals Inc. (Nasdaq: USLM), which deals in limestone and other construction materials. Since I wrote about this stock in November 2022, it’s up 185%.
Nothing flashy or fancy. These are just plain old boring stocks beating the market by huge margins.
Today, I’ll show you a “boring” sector of the market that’s been on an impressive rise of late.
Over the Ocean and Through the Pipeline
Commodities trading is an interesting game.
You are buying, selling, transporting, storing and processing physical raw goods, which range from wheat and corn to oil and natural gas.
Let’s focus on transporting goods.
Getting goods from one point to another is big business. Americans would struggle without billions of dollars in packaged medicines we receive from Germany.
Mexico couldn’t thrive without massive refined oil imports from the U.S.
Then, there is the $210 billion in automobiles the U.S. imported from around the world last year alone!
These products have to get from Point A to Point B somehow, and one of the most popular ways is to ship by sea.
In 2023, the U.S. imported and exported 914 million tons of goods through various ocean ports. By 2050, that number is expected to grow to 1.2 billion tons.
And shipping to and from the U.S. has been a boon for shipping companies this year:
The SonicShares Global Shipping ETF (NYSE: BOAT) has risen 22% since January 1. The exchange-traded fund (ETF) invests in companies that operate oil and gas transportation services.
For reference, the S&P 500 has gone up 9.8% during the same time, meaning global shipping is outperforming the broader market by more than 2-to-1.
Amid all the talk about artificial intelligence, Big Tech, biopharmaceuticals and e-commerce, “boring” shipping stocks are blowing the doors off the market.
Get Into “Boring” Shipping ETFs and Stocks
I bring up “boring” shipping stocks because three stocks in the BOAT ETF just landed on Chief Investment Strategist Adam O’Dell’s weekly hotlist.
All three rate 97 or higher on his Green Zone Power Ratings system and met other criteria to be considered strong buy candidates.
When I saw that, I knew a trend must be in the offing, and it was something I had to share with you.
I’d be remiss if I talked about shipping stocks without mentioning that Adam spotted this trend last year and recommended a strong stock in the sector to his Green Zone Fortunes subscribers.
Since then, the stock has gone up 68%! Adam is confident it has more room to run.
And shipping isn’t the only trend Adam has spotted early…
He just identified an overlooked development in the AI space and the one stock he believes will lead that market from here.
If you want to see how to access Adam’s hotlist, his shipping stock that’s still below its buy-up-to price, and his latest AI recommendation in Green Zone Fortunes, click here.
Until next time…
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
