2024-01-30 22:48:42 ET
Summary
- The basic materials sector offers compelling risk-reward calculus in the next 12-18 months.
- The sector has potential upside and top-down security selection can be tilted towards this domain in 2024 by out-estimation.
- Tronox Holdings is a manufacturer of titanium oxide pigment and presents with a balanced investment debate.
Investment Briefing
In our opinion the basic materials sector offers a compelling risk reward calculus over the coming 12 to 18 months. Our findings from Q3 2023 earnings illustrated that the basic materials sector had 10% of the projected S&P 500 index earnings growth this year, but held just 2% notional value of the market-weighted index at the time. Readers of mine will have seen the chart in Figure 1 extensively published throughout our most recent series of analyses....
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For further details see:
Tronox Holdings: Starting Multiples, Sluggish Returns Offset Potential Outsized Earnings Growth