Tires and Trade: How to Find Tomorrow's Winning Stocks

by Andrew Zatlin

I’m no fortune teller…

But I know how to forecast a company’s future — before other investors have a clue.

And today, I’ll show you how.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Tires and Trade: How to Find Tomorrow’s Winning Stocks

If I want to know how a company like General Motors (NYSE: GM) will perform in the future, I don’t ask the company.

Instead, I ask its suppliers — in other words, the companies that make GM’s parts, like its tires or headlights. Why?

Simple. Because the supplier’s sales will show up before GM’s sales!

For example, are tire sales booming? That means it’s likely that GM’s business is about to go up, too. Are tire sales down? GM’s sales will likely be down, too.

Using data from GM’s suppliers, I can assess a company’s future potential — and get positioned for that future by either buying or selling its stock.

But supplier sales aren’t the only way I can forecast the future…

Trade Data Is Key

I also analyze U.S. imports and exports. In other words, America’s trade data.

Keep in mind, what a company imports today will translate to its sales tomorrow.

Just like we can use a tire company’s sales to forecast GM’s potential, we can use trade data to get a sense of which companies — and which sectors — are poised for success.

I spent the past few days doing a deep dive on the latest trade data…

And I identified five sectors primed for profits. Let’s take a look…

Five Sectors to Watch

Based strictly on import data, I can see that four sectors are in great shape.

In the last six months, for example:

  • Fertilizer imports are up sixty percent compared to the same period a year ago.
  • Oil imports are up seventy-five percent.
  • Iron imports are up sixty percent.
  • And footwear imports are up fifty-five percent.

These increases make sense…

There’s strong demand (and supply problems) for fertilizer, oil, and iron because of the Russia/Ukraine war. And because people are returning to the office, they need new shoes!

For the fifth sector, I analyzed export data. And what I learned is that exports of aircraft equipment are up fifty percent. After a two-year dip, air travel is back!

Based on trade data, I can see these five sectors have bright futures.

But then I dug deeper…

The Proof Is in the Hiring

To confirm these sectors were in strong shape, I layered in my hiring data.

This gives me insights into whether companies in these sectors are expanding their workforce. In other words, whether they’re expecting growth.

And sure enough, I got confirmation.

First, look at Mosaic (NYSE: MOS), the fertilizer company. As you can see below, its hiring is up:

Next, look at hiring by oil companies Eaton (NYSE: ETN) and Kinder Morgan (NYSE: KMI):

Iron companies like Nucor (NYSE: NUE) and Steel Dynamics (Nasdaq: STLD) are increasing hiring, too:

And with respect to footwear, look at one of the biggest shoemakers, Nike (NYSE: NKE):

Last but not least, hiring for aviation company Boeing (NYSE: BA) is up, too:

My Favorite Investment Pick

Using trade data, we can see — ahead of time — which companies and sectors will soar.

Furthermore, we can use my hiring data to confirm these forecasts, and to position ourselves accordingly.

Based on all this data, I’ve got a favorite stock pick right now. I’m sharing all the details with “Pro” subscribers.

In the meantime, Zatlin out. Talk to you soon.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics