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Vested interest exists. This means an individual has a special interest in protecting or promoting that which is to their own personal advantage. Or, there are groups that seek to support or control an existing system or activity from which they derive private benefit.A first line manager’s vested interest are in their functional area goals. A first line manager’s external business environment is also important. Effective first line managers must support a balance between their and others’ vested interest. A first line manager is like a fish in water; the fish contains water and is in water. There is internal business vested interests and external business vested interests. Let us consider these interests.First consider, a business’s internal interest and the manager’s role in each. There are two types of first line managers; functional line managers and general managers. I was a functional line manager as a restaurant manager, an accounting manager, and a territory sales manager, in these roles, my success was dedicated to that function. I was a general manager of hotels and a Business Office Manager; in these roles, my interest was in accomplishing all the functional goals of the organization.Functional first line mangers have to make sure their area of responsibility is accomplishing the assigned departmental goals. A functional manager’s is a success if their departmental goals are accomplished. Managers that are removed of not successful. Acceptable managers goals are within the acceptable range. Managers that consistency exceed their goals are considered for higher management. They are top performers. Here is the rub, functional managers must maintain a delicate balance between their department’s interest and other department’s vested interest.As a District Accounting Manager I approved the credit on sales contracts for appliance sales, a marketing function. If I was too selective marketing did not make quota and the salesperson salary suffered. If I was too lenient, the marketing department made above quota and the salesperson was very happy. In my accounting function was responsible for the payment of the contracts. I reported to a Division Accounting Manager who expected me to collect the money for the appliances. I received my promotions and my bonus on how effective I was in collections not in sales. This is the conundrum of a first line manager; how do you carry out line goals while not alienating other departments.Now think about this, if a first line manager wants to become a general manager, they must keep the other departments goals in perspective. Other first line managers must know, even though, you have departmental interest; you understand other departments have vested interest. You must be seen as cooperating with them to make every manager and the company successful. This is very important, and an extremely difficult balance.If you want to progress to a mid-level manager within your functional area, cooperation with other departments vested interests is important. A mid-level functional manager most times reports to a middle level general manager and higher level functional manager. Progression to a functional middle manager is difficult, most times, you have to be on the top of the department’s functional goals. In addition, you must be acceptable to the mid- level general manager. A mid-level general manager will not want a line functional manager that creates problems for other functional areas as a mid-level functional manager.Now, consider the first line manager as general manager. I was a first line business office manager and general manager, I was responsible for all the functions of the company. I had an interest in the accomplishing the goals of accounting, marketing, and operations. I had goals in each of these functional areas. I reported to a middle level general manager. I was given these positions because I was a successful first line manager. Also, I was chosen for these positions because of my expanded activities in the community and within the company. I achieved my functional goals and helped other departments make their goals; or, I would never been given these general management positions. As a general manager my energy was divided among the functional areas of the company. My success was based on my teams success in all the functional areas. I had a vested interest in all functional areas. Now, I had to deal with reporting to functional middle managers whose vested interest was in their area.Second consider, a business’s external interest and the manager’s role. A couple examples are the vested interest of Labor unions, and the community.Labor unions are an external vested interest. Unions present a unique problem for a first line manager.I remember my Dad explaining mistletoe to me. Mistletoe gets it food from the tree. If the tree dies the mistletoe plant will die. I wondered if the mistletoe knew it could kill the tree. Labor unions have a vested interest in keeping the union alive. Do they care if the business survives? I think that to a great extent a union does.As a first line and general manager, I had to contend with union concerns. This meant, I became an expert on the union contract. I realized the written comments in the contract did not always mean what they seemed to mean. This conundrum meant, I had to know the memorandum of understanding of the comments between the company and the union. Also, I made use of a company industrial relations person when there was confusion.A union employee’s interest was not always in the best interest of the company; it was with the union. Seniority is a vested interest in unions. This means that seniority was a interest of union employees. Our contract gave certain entitlements for seniority. I had to know how to manage seniority. If I was not careful, union employees would use seniority entitlements to their advantage. For example, union employees that reported to me wanted all new vehicle to go to the senior employee. This entitlement was not in the contract and was not in the interest of the company. I refused to allow the senior employee to get the new vehicle. Why is knowledge of the contract contents important to a manager? If you are not careful, you will set a precedent in your department that will be used against the company in negotiations or arbitrations.First line managers must understand community interest. First line managers must at times place these community interest ahead of company and personal interests. This is very important today because of social media. A manager must always be aware of risk management and ethics in their decisions. Some decisions may seem correct for your department or company; but, will not for the interest of the community. Your decision could become a risk management issue for your company.Consider, General Motors, because it did not consider the interest of the community when it did not recall the cars because of the starter problem in their cars. This decision had a tremendous negative impact on the image of General Motors with the public.I will not continue with other examples of invested interest first line managers must consider.The point is, a first line manager must be sensitive to other’s vested interest; then, manage their vested interest accordingly.

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.