With oil prices likely to remain low for a considerable period, how can you profit from the situation? For starters, keep in mind that any company that uses oil or gasoline as a major input or sells products and services that people pay for with disposable income stands to benefit.
Interestingly, even some companies within the energy industry will prosper, such as refiners, or be unaffected (pipelines) by the drop in price. Industries negatively affected include E&P companies, oil service companies, and any firm that caters to the oil industry such as equipment producers.
Beneficiaries of lower oil and gasoline prices run the gamut from transportation companies to manufacturers. Food and retail firms will also do better, as will, somewhat surprisingly, entertainment companies. Here is a list of stocks to consider.
Transportation: airlines, railways, trucking companies
Westjet Airlines (TSX: WJA)
Delta Airlines (NYSE: DAL)
CN Rail (TSX: CNR, NYSE: CNI) - an IWB recommendation.
CSX Corp. (NYSE: CSX)
FedEx Corp. (NYSE: FSX)
United Parcel Services (NYSE: UPS)
Autos, tire companies, chemicals
Ford Motor Company (NYSE: F)
General Motors (NYSE: GM)
Bridgestone Corp. (OTC: BRDCY)
The Dow Chemical Company (NYSE: DOW)
E.I. DuPont de Nemours and Company (NYSE: DD)
Grocers and restaurants
Whole Foods Market, Inc. (NYSE: WFM)
The Kroger Company (NYSE: KR)
McDonald's Corp. (NYSE: MCD) - an IWB recommendation.
Yum! Brands (NYSE: YUM) - an IWB recommendation.
Retailers
Wal-Mart Stores Inc. (NYSE: WMT) - an IWB recommendation.
Target Corp. (NYSE: TGT)
The Gap, Inc. (NYSE: GPS)
Entertainment companies
The Walt Disney Company (NYSE: DIS) - an IWB recommendation.
Twenty-First Century Fox, Inc. (NDQ: FOXA)
Time Warner Inc. (NYSE: TWX)
