Add These 3 Stocks Under $10 Rated ‘Strong Buy’ to Your 2022 Watchlist
With the COVID-19 omicron variant proving so far to be less severe than previous coronavirus variants, and with the economic recovery continuing unabated, we think it's time to add quality...
With the COVID-19 omicron variant proving so far to be less severe than previous coronavirus variants, and with the economic recovery continuing unabated, we think it's time to add quality names Manning & Napier (MN), LifeVantage (LFVN), and Lifeway Foods (LWAY) to one’s watchlist for 2022. These stocks are currently trading at less than $10 per share but have a ‘Strong Buy’ rating in our proprietary rating system. So, let’s discuss.
The stock market was highly volatile last month, with fears surrounding the transmissibility of the COVID-19 omicron variant. However, the latest reports suggest that the omicron variant is less severe than the Delta variant. Preliminary reports also indicate that the risk of hospitalization is less if someone gets infected with the omicron variant.
The major market indexes scaled record highs last year. The economic recovery is expected to remain strong, and companies are expected to continue reporting stellar numbers this year. According to a FactSet report, the S&P 500 is expected to generate 9% year-over-year earnings growth in 2022, which surpasses the 10-year average earnings growth of 5%.
Given this backdrop, we think it could be wise to add quality low-priced stocks Manning & Napier, Inc. (MN), LifeVantage Corporation (LFVN), and Lifeway Foods, Inc. (LWAY) to one’s portfolio. These stocks have an overall ‘Strong Buy’ rating in our proprietary POWR Ratings system.
Manning & Napier, Inc. (MN)
MN in Fairport, N.Y., is an independent investment management firm that provides clients with a range of financial solutions and investment strategies. The company’s investment strategies are powered by multiple research engines, employing fundamental and quantitative approaches, and are offered as single and multi-asset class portfolios.
MN’s revenue for its fiscal third quarter, ended Sept. 30, 2021, increased 17% year-over-year to $37.50 million. The company’s average AUM increased 16% year-over-year to $22.40 billion. Its non-GAAP economic income came in at $6.87 million, representing a 115.6% increase year-over-year, and its non-GAAP economic EPS increased 114.2% year-over-year to $0.30.
Analysts expect MN’s EPS for its fiscal 2021 to increase 242.2% year-over-year to $0.42. The stock has gained 29.4% in price over the past year to close yesterday’s trading session at $8.11.
MN’s strong fundamentals are reflected in its POWR Ratings. It has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
LifeVantage Corporation (LFVN)
LFVN in Sandy, Utah, is engaged in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. Its products include Protandim, LifeVantage Omega+, TrueScience, and PhysIQ.
On November 17, 2021, LFVN announced that it had commenced business in the Philippines through its subsidiary Protandim Philippines Corporation. LFVN has expanded its operations across 20 countries with this foray into the Philippines.
For its fiscal first quarter, ended September 30, 2021, LFVN’s operating income increased 31.4% year-over-year to $4.60 million. The company’s operating expenses decreased 7.3% year-over-year to $15.10 million. In addition, its EPS came in at $0.25, up 47% year-over-year.
For its fiscal 2023, LFVN’s EPS and revenue are expected to increase 9.2% and 5%, respectively, year-over-year to $0.95 and $235.88 million. It surpassed the Street’s EPS estimates in three of the trailing four quarters. The stock has gained 3.9% in price over the past month to close yesterday’s trading session at $6.68.
LFVN’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. It has an A grade for Value and Quality and a B grade for Growth and Sentiment. LFVN is rated #2 of 12 stocks within the B-rated Medical – Consumer Goods industry. To see the other ratings of LFVN for Momentum and Stability, click here.
Lifeway Foods, Inc. (LWAY)
LWAY makes probiotic products, and its main products are the drinkable Kefir and the BioKefir. The Morton Grove, Ill.-based concern also makes European-style soft cheeses, farmer cheese, white cheese, and Sweet Kiss. In addition, it operates two retail stores and a food truck under its Lifeway Kefir shop subsidiary in the Chicago, Illinois, metropolitan area.
On August 18, 2021, LWAY announced that it had completed the acquisition of GlenOaks Farms, Inc. in an all-cash deal worth $5.80 million. This will likely help LWAY diversify its portfolio by entering the probiotic drinkable yogurt market.
For its fiscal third quarter, ended Sept. 30, 2021, LWAY’s net sales increased 13.5% year-over-year to $29.60 million. For the nine months ended Sept. 30, 2021, the company's gross profit increased 10.8% year-over-year to $22.71 million. Also, its net income for the nine months ended Sep. 30, 2021, increased 15.3% year-over-year to $3.40 million. The stock gained 5.4% in price on the first trading session of 2022 to close at $4.85.
It is no surprise that LWAY has an overall rating of A, which equates to a Strong Buy in our POWR Rating system. It has an A grade for Growth and a B grade for Value, Stability, Sentiment, and Quality. Again, it is ranked #4 of 49 stocks in the Food Makers industry. Click here to see LWAY’s rating for Momentum as well.
MN shares were unchanged in premarket trading Tuesday. Year-to-date, MN has declined -2.41%, versus a 0.91% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
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