Sasol Ltd. (NYSE:SSL) is one of the 10 Stocks With Effortless Gains.
Sasol surged to a two-year high on Tuesday, as investors loaded portfolios in its stock amid the intensifying trade tensions in the Middle East.
In intra-day trading, the stock climbed to a record high of $13.68 before trimming gains to finish the session just up by 8.97 percent at $13.60 apiece, with the rally primarily driven by uncertainties in the Middle East, as the US issued fresh tirades against Iran, saying that “a whole civilization could die” if Iran fails to strike a deal on the Strait of Hormuz by 8 PM ET.
Photo by Tom Fisk on Pexels
The rally on Sasol Ltd. (NYSE:SSL), on the other hand, was boosted by optimism for a continued oil price surge, while markets stayed on the sidelines ahead of developments between the two countries.
Last month, investment firm JPMorgan turned bullish for Sasol Ltd. (NYSE:SSL), upgrading its price target by 122 percent and upgrading its rating to “overweight” from “underweight” previously, on expectations that the latter would benefit from higher oil prices and supply disruptions.
Additionally, JPMorgan expects benchmark crude oil prices to jump to $120 per barrel and further to $250 if the Strait of Hormuz—a critical waterway where 20 percent of the global oil supply passes through—closes for six months.
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