FX.co ★ Top 10 investment ideas suggested by leading analysts

Stocks of US oil and gas, steel-producing companies

Experts consider shares of American oil and gas companies underrated. However, when the crisis period is over, these shares are projected to grow exponentially. This is especially true for steel-producing companies. A rise in construction volumes as well as the launch of infrastructure projects may boost the shares of steel-producers.

Europe-focused ETFs

Analysts recommend that market players using the US dollar should invest in the American market, while those using the euro should invest in the European one. In the euro area markets, exchange traded funds (ETFs) are regarded as the most profitable investment funds. Over the years, they have proven themselves well and have received excellent recommendations. Germany’s stock indices require special attention. Experts suggest when all coronavirus restrictions are lifted, Germany as an export-oriented country will be able to recover faster than other European economies.

Emerging market ETFs

According to analysts, such funds include iShares JP Morgan USD Emerging Markets Bond ETF and VanEck Vectors Emerging Markets High Yield Bond ETF. Nowadays, stocks of emerging market economies tend to have the highest upside potential in terms of lower returns on risks. At the same time, the possibility of a default and restructuring is very high. Therefore, experts recommend investing not in shares of certain companies but through funds.

Petrobras dollar bonds with maturity in 2030

Experts consider investments in shares of Petrobras, the largest oil and gas company in Latin America, to be a very profitable deal. Their yield to maturity is 4.2%. By 2024, Petrobras executives plan to accelerate oil and gas production to 3.5 million barrels per day. The company is selling its non-core assets to reduce the debt burden.

Borets dollar bonds with maturity in 2026

According to analysts, investments in bonds of Borets, the leading international manufacturer of oilfield equipment can bring large profit. The company designs, manufactures and renders oil equipment services. Borets’ distinctive feature is the production of high-quality electric submersible pumps. The company is playing a key role in both the Russian and global markets. The international giant of petroleum engineering has a moderate debt burden. The yield to maturity in USD is 5.85%.

Boeing dollar bonds with maturity in 2030

Nowadays, Boeing is dealing with the most challenging time. Nevertheless, 50% of its revenue comes from defense orders from the federal government. Boeing’s current yield premium is 2.7 percentage points (pp) compared to US Treasurys. Experts suggest that the bond price will soar to 125%. Therefore, investors will be able to generate more than 17% of pretax profits in USD on the bond issuance.

Penoles Mexicanos dollar bonds with maturity in 2050

Penoles Mexicanos is one of the largest producers of precious metals in Latin America. It accounts for about 6% of the world's silver production. The company has a low level of debt burden while being the beneficiary of strong growth in silver and gold prices. At the moment, the company’s yield to maturity is 4.24%.

US-focused ETFs

Analysts believe that such investments pose lower risks to investors. The reason for that is a large-scale financial stimulus package aimed at eliminating the negative consequences of the coronavirus pandemic. Monetary and fiscal emergency measures, implemented by the US regulator, maintain investors’ interest in US financial institutions.

Lukoil dollar bonds with maturity in 2030

The best options for conservative investors would be to invest in Lukoil Oil Company. Currently, its yield to maturity is 3.1% Moreover, the Russian largest oil producer has a low level of debt burden.

Vale dollar bonds with maturity in 2030

Vale is one of the leading Brazilian corporations engaged in metals and mining. Interestingly, its production cost is considered to be one of the lowest in the world. At the same time, Vale has a light debt load, while its yield to call is 2.83% and the yield to maturity is 2.85%. Vale’s bond issuance is highly rated by major reputable agencies such as S&P, Moody's, and Fitch (BBB-, Baa3, and BBB respectively).