Why HUDI Stock Is a Compelling New Energy Investment

  • Huadi International (HUDI) is a traditional steel pipe and tube manufacturer.
  • The company also plans to diversify into the clean-energy market.
  • Investors who can tolerate volatility might think about purchasing a few shares of HUDI stock.
HUDI stock - Why HUDI Stock Is a Compelling New Energy Investment

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Until recently, Huadi International (NASDAQ:HUDI) stock was quite obscure. However, this traditional steel pipe and tube manufacturer is undergoing a major transition.

Soon, HUDI stock could be an unexpected ESG (environmental, social and governance) investment for risk-tolerant financial traders.

It’s no secret that renewable energy development is a priority for the Chinese government. Yet, curious traders might wonder how China’s push for sustainable fuel sources could benefit a conventional steelmaker like Huadi International.

What’s exciting about this particular company is its willingness to adapt to China’s shift toward ESG-friendly policies. As China changes, so does Huadi International, and that’s potentially good news for the company’s patient long-term investors.

HUDI Huadi International  $8.75

HUDI Stock Made Some Sizable Price Moves

First things first: HUDI stock is capable of moving fast, so the idea isn’t to pour one’s entire investment account into this one asset. Not long ago, Huadi shares exhibited volatility as China seemed to waver in its commitment to strict Covid-19 policies.

The point is, be prepared for some volatility if you’re going to invest in a China-based small-cap business like Huadi International. Swift price action is par for the course, and all position sizes should be moderated accordingly.

That said, it’s an interesting strategy to own a few HUDI stock shares as a wager on China’s economic recovery and/or the global steel market. After all, as developed nations build out their infrastructure, they’ll undoubtedly need steel pipes and tubes.

Huadi International Ventures into Clean Energy

Huadi International might be known as a small Chinese steel business. There’s more to this company than meets the eye, however. Along with steel pipes and tubes, Haudi could soon be building (or at least, helping to build) new-energy batteries.

Just recently, Huadi International announced “discussions” with a local government in China’s Sichuan province. The company also disclosed “plans to invest and construct local production base for anode materials,” which are used to develop “clean energy batteries and storage technologies.”

Local officials, according to Huadi International, recognized the company’s ability to “accelerate the domestic battery supply chain and meet growing demand from the electric vehicle and stationary grid storage markets.” With this, Huadi has declared its commitment to “paving the way for the clean energy transformation.”

So, it appears that HUDI stock could soon be a diversified investment in conventional steelmaking and ESG-compliant battery technology. It’s a savvy move for Huadi International to expand its business model as local environment-friendly initiatives could boost the company’s bottom line.

What You Can Do Now

Again, the idea here isn’t to go all-in on HUDI stock. Feel free to scale in slowly, and understand that price volatility is to be expected.

With that in mind, investors can consider a moderately sized stake in Huadi International. It’s an interesting way to gain exposure to the traditional steel market and, potentially, new-energy materials at the same time.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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