The oil bubble appears to be bursting, but just in case it reinflates, Credit Suisse has produced a list of companies that will benefit from high oil. It includes:
Southwest Airlines (LUV) — High oil prices suck for any airline, but Southwest will do better than most. As we’ve discussed, LUV has been far and away the most effective in hedging against high oil. And given that soaring oil is killing off airlines right and left, the higher oil goes, the less competition Southwest may have.
Air Products (APD) and Praxair (PX) — Products enable greater energy efficiency for customers.
Brookfield Properties (BPO) — This REIT generates almost 15% of its Net Operating Income from Houston and Calgary, markets largely dependent on the strength of energy companies.
Meanwhile, here are some companies CS thinks will get clobbered by high oil:
Allergan (AGN) and Advanced Medical Optics (EYE) — These specialty pharmaceutical companies derive a high proportion of sales from products subject to discretionary spending decisions. As consumers spend more on gas, they’ll spend less on elective surgery.
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