The stock market is skittish at the moment.
The optimists would say signals from the US indicate interest rate rises could be at an end and that the market's appetite for risk will return.
On the other hand, Australia's inflation seems to be more stubborn and Reserve Bank governor Michele Bullock is warning that 140-year-high wages growth is unsustainable unless it also comes with a productivity boost.
So in this uncertain climate, perhaps the best buys at the moment are ones with structural and global tailwinds behind them.
Let's check out the three most tempting ones this week:
Image source: Getty Images
Best deal #1: rare earths are still rare
Even though Lynas Rare Earths Ltd (ASX: LYC) maintains its place in the commodities market as the major producer of rare earth minerals outside of China, its stock price has tumbled almost 30% since February.
However, it has just started something of a revival, picking up 12.6% since 23 October.
Rare earths are a critical ingredient for many everyday items, such as magnets used in electric cars, batteries, catalytic converters for petrol cars, computers, and medical imaging.
Marcus Today analyst Oliver Matthew is a fan of Lynas, pointing out how the company's operating licence in Malaysia was extended to 2026.
"Lynas Rare Earths has signed a follow-on contract with the US Department of Defence for the construction of a heavy rare earths component at the Lynas facility in Texas, as the US seeks more domestic rare earths processing," he told The Bull.
"Rare earths prices have also risen since the lows in July. We believe the latest developments provide a catalyst for further gains."
Lynas Rare Earths enjoys almost unanimous support in the professional community.
According to CMC Markets, 11 out of 12 analysts believe the stock is a buy right now.
Best deal #2: 'globally significant scale'
Lithium explorer Patriot Battery Metals Inc CDI (ASX: PMT) has only been on the ASX since December, but it's already making quite an impression.
"Earlier this year, the company announced a significant maiden resource of 109.2 million tonnes at 1.42% lithium oxide, which put the asset on a globally significant scale," Argonaut associate dealer Harrison Massey told The Bull.
"In October, the company announced the discovery of a new mineralised high-grade zone called CV13, with sample sizes of between 3% to 5% lithium oxide near the surface."
The test results from that sample will come within the next six to nine months, and could put an absolute rocket under the Patriot share price.
All nine analysts surveyed on CMC Markets rate Patriot Battery Metals as a buy.
Best deal #3: margin outlook backs boom forecast
That's two resources stocks already, and while the third pick this week isn't involved in digging stuff out of the ground, its clients are mining companies.
More than one expert believes maintenance services provider Mader Group Ltd (ASX: MAD) is a buying opportunity with the stock price 16% lower than it was on 30 August.
The Mader share price had more than doubled at one stage this year.
The team at QVG certainly believes this is a temporary hiccup in the stock price, and have full faith in the long-term direction of Mader Group shares.
"Their September quarter showed 37% revenue growth, with their less mature North American business doing the heavy lifting," it said in a memo to clients earlier this month.
"Expectations are high but we believe the margin outlook supports consensus forecasts."
Mader Group also has great backing in the professional community with four out of the five analysts surveyed on CMC Markets currently rating it as a buy.
