Hazer is well positioned to capture the secular tailwinds created by the latest findings of the Intergovernmental Panel on Climate Change.
The post Why the Hazer (ASX:HZR) share price is up 12% this week appeared first on The Motley Fool Australia. –
The Hazer Group Ltd (ASX: HZR) share price has jumped out of the starting blocks this week and stamped firmly into the green.
Hazer shares closed the day at 91.5 cents, a 12.27% climb from last Friday’s closing price.
There was no market-sensitive information today. However, Hazer shares may be rising on a backdrop of market crosscurrents that favourably impact Hazer’s end markets.
Let’s investigate further.
The IPCC Climate Report
The Intergovernmental Panel on Climate Change (IPCC) recently delivered the findings from its report on climate change.
A cause for serious concern is the mantra carried throughout the report’s entirety. For instance, the IPCC estimates that global warming will reach 1.5 degrees celsius by 2030 at the current run rate.
The IPCC also found that global temperatures have elevated by 1.1 degrees since industrialisation times.
As such, the report calls to abandon oil, coal and gas exploration. Moreover, it states reforestation and carbon removal are key initiatives in reversing global warming.
What does this mean for the Hazer share price?
Firstly, the ASX is over-indexed towards natural resource shares, highly concentrated in coal, oil, natural gas and metals.
It stands to reason that these names will likely be net losers as a result of the report findings.
In addition, United Nations secretary-general António Guterres described the significant growth in renewable infrastructure required to fulfil the IPCC report’s objectives.
Guterres advocates that wind capacity “should quadruple” and that renewable energy investments “should triple” to “maintain a net-zero trajectory” by 2050.
Recall that Hazer has claim to a unique process that converts biomethane to renewable hydrogen and graphite without producing CO2 in the process.
Therefore, it also stands to reason that Hazer is well positioned to capture these secular tailwinds outlined by Guterres.
Investors seem to think so too, having pushed the Hazer share price 10% higher in afternoon trading.
Hazer share price snapshot
The Hazar share price has posted a year-to-date gain of 13.66%, extending the previous 12 month’s climb of 131.65%.
This has outpaced the S&P/ASX 200 Index (ASX: XJO) return of around 24% over the past year.
Should you invest $1,000 in Hazer Group right now?
Before you consider Hazer Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hazer Group wasn’t one of them.
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*Returns as of May 24th 2021
The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.