Is the bottom in for commodity stocks?
In a big Monday call, R.W. Baird upgraded mining equipment makers Caterpillar and Joy Global to "outperform," saying that "the worst is behind" commodities, that the mining business is stabilizing, and that "history shows that being early pays off."
For Erin Gibbs, equity chief investment officer with S&P Capital IQ, such thinking makes sense.
"In Q1, both companies reported rather dismal earnings and they warned the next two, if not three, quarters were actually going to be worse," she said Monday in an interview with CNBC's "Trading Nation." "But clearly investors are looking much farther ahead, and they're looking at 2016, which actually has really great [expected] growth going forward."
The rally in oil-exposed stocks is likely fresh in the minds of material stock investors. The Market Vectors Oil Services ETF (OIH) has rallied 20 percent since its mid-March bottom—when all hope had appeared to be lost.