Take Advantage of These 5 'Strong Buy' Stocks Down More Than 10% YTD
Amid deepening supply disruptions and record-high inflation, expected aggressive federal interest rate increases, and the resurgence of COVID-19 cases have been driving market volatility. However, we think quality stocks Agilent...
Amid deepening supply disruptions and record-high inflation, expected aggressive federal interest rate increases, and the resurgence of COVID-19 cases have been driving market volatility. However, we think quality stocks Agilent (A), Olympus (OCPNY), F5 (FFIV), Jones Lang LaSalle (JLL), and United Therapeutics (UTHR), which are down more than 10% in price year-to-date, could be solid bets now because hopes for an economic recovery still predominate. These stocks are rated Strong Buy in our proprietary rating system. Read on.
The Russia-Ukraine war has aggravated logistical disruptions worldwide. Furthermore, Citigroup expects the Fed to deliver half-point rate increases at its next four meetings. In addition, as oil and gas prices witness heavy fluctuations amid the resurgence of COVID-19 cases in many countries and Western sanctions on Russia, the market is predicted to remain volatile in the near term. However, chances of an economic rebound have not yet been ruled out.
According to CNBC's Jim Cramer, investors should always watch for bounce, even when all seems hopeless. Therefore, beaten-down stocks with robust financials might offer solid returns to investors.
Fundamentally strong stocks Agilent Technologies, Inc. (A), Olympus Corporation (OCPNY), F5, Inc. (FFIV), Jones Lang LaSalle Incorporated (JLL), and United Therapeutics Corporation (UTHR) have declined more than 10% in price year-to-date, but they are rated Strong Buy in our proprietary rating system.
Agilent Technologies, Inc. (A)
Santa Clara, Calif.-based provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. Its segments are Life Sciences and Applied Markets; Diagnostics and Genomics; and Agilent CrossLab.
On Feb. 22, 2022, Mike McMullen, A's president and CEO, said, "Building on our first-quarter results, combined with a strong order book, we are raising our full-year outlook, increasing our core growth and non-GAAP EPS expectations. The Agilent portfolio and team have never been stronger. I'm confident we will continue our outstanding execution for the remainder of the year."
For its fiscal year 2022 first quarter, ended Jan. 31, 2022, A's net revenue increased 8.1% year-over-year to $1.67 billion. The company's non-GAAP net income came in at $368 million, up 12.2% year-over-year, while its non-GAAP EPS was $1.21, up 14.2% year-over-year.
Analysts expect A's revenue to be $6.14 billion in 2022, representing a 10.3% year-over-year increase. The company's EPS is also expected to rise 15.1% to $4.41 in 2022. In addition, it has surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has declined 15% in price year-to-date to close Friday's trading session at $135.71.
A's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
A has a B grade for Growth, Value, Stability, Sentiment, and Quality. It is ranked #2 of 52 stocks within the Medical - Diagnostics/Research industry. Click here to see the additional POWR Ratings for A (Momentum).
Olympus Corporation (OCPNY)
Headquartered in Tokyo, Japan, OCPNY manufactures and sells precision machinery and instruments worldwide. It operates through four segments: Endoscopic Solutions Business; Therapeutic Solutions Business; Scientific Solutions Business; and Others.
On Nov. 12, 2021, OCPNY announced the establishment of Olympus Innovation Ventures to invest in pioneering start-ups for improving clinical outcomes at an affordable cost. Nacho Abia, OCPNY's COO, said, "This effort is another way Olympus demonstrates its commitment to excellence and creating tangible value for providers and patients. We believe we will play a meaningful role in advancing minimally invasive care and new ways to detect, monitor, and treat conditions and diseases."
OCPNY's revenue increased 22.6% year-over-year to ¥629.76 billion ($5.12 billion) for the nine months ended Dec.31, 2021. Its profit came in at ¥87.85 billion ($713.57 million), up 5,240.4% year-over-year, while its EPS came in at ¥68.16, up 5,309.5% year-over-year.
Analysts expect OCPNY's revenue to increase 5.8% year-over-year to $7.55 billion for its fiscal period ending March 31, 2023. Its EPS is estimated to grow 7.2% per annum for the next five years. The stock has declined 18% in price year-to-date to close Friday's trading session at $18.97.
OCPNY has an overall A rating, which indicates a Strong Buy in our POWR Ratings system. It has a B grade for Value, Stability, and Quality. Within the Medical - Devices & Equipment industry, OCPNY is ranked #5 of 164 stocks. Click here to see the additional POWR Ratings for Growth, Momentum, and Sentiment for OCPNY.
F5, Inc. (FFIV)
FFIV provides multi-cloud application security and delivery solutions for the security, performance, and availability of network applications, servers, and storage systems. The Seattle, Wash., company has partnerships with Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
On Jan. 25, 2022, François Locoh-Donou, F5's president and CEO, said, "Demand drivers across our business are as strong as they have ever been. Customers increasingly see F5 as an innovator uniquely equipped to help them build and scale their traditional and modern application environments with our software- and systems-based solutions."
FFIV's total net revenues for the first quarter, ended Dec. 31, 2021, came in at $687.10 million, up 10% year-over-year. Its net income came in at $93.56 million, up 6.7% year-over-year, while its EPS came in at $1.51, up 7.1% year-over-year.
For its fiscal year 2023, analysts expect FFIV's revenue to increase 9.5% year-over-year to $3.02 billion. Its EPS is estimated to grow 19.8% to $12.76 in 2023. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has lost 14.2% year-to-date to close Friday's trading session at $209.86.
FFIV's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B grade for Growth and Value. Within the Software - Business industry, it is ranked #2 of 59 stocks. Click here to see the additional POWR Ratings for Momentum, Sentiment, and Stability for FFIV.
Jones Lang LaSalle Incorporated (JLL)
JLL in Chicago is a professional services company that provides real estate and investment management services in the Americas, Europe, the Middle East, Africa, and Asia Pacific. It is a leading professional services firm that specializes in real estate and investment management.
On Feb. 28, 2022, JLL's CEO, Christian Ulbrich, said, "During the past year, we made incremental investments in our business to drive future growth and increased capital returns to shareholders. As we enter 2022, JLL is well-positioned to seize the significant opportunities across the commercial real estate sector and continue to generate long-term value for stakeholders."
For the fourth quarter, ended Dec. 31, 2021, JLL's revenue came in at $5.95 billion, up 22.7% year-over-year. Its adjusted net income was $447 million, up 62.1% year-over-year, while its adjusted EPS came in at $8.66, up 63.7% year-over-year.
JLL's revenue is expected to increase 14.3% to $9.96 billion in 2023. Its EPS is expected to grow 9% per annum for the next five years. It surpassed EPS estimates in each of the four trailing quarters. The stock has declined 12.7% in price year-to-date to close Friday's session at $235.13.
JLL's POWR Ratings reflect its promising outlook. It has an overall A rating, which represents a Strong Buy in our POWR Ratings system.
JLL has a B grade for Growth and Quality. It is ranked #2 of 45 stocks in the Real Estate Services industry. Click here to see the additional POWR Ratings for JLL (Value, Momentum, Stability, and Sentiment).
United Therapeutics Corporation (UTHR)
UTHR in Silver Spring, Md., is a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally.
On Feb. 24, 2022, Martine Rothblatt, Ph.D., chairperson and CEO of UTHR, said, "We continue to make strong progress with patient growth as we reach 25,000 patients with our therapies by the end of 2025. The recent transplants of our xenoheart and xenokidney products demonstrate the tremendous potential of our business model for the second half of the 2020s and beyond."
UTHR's revenues increased 7.9% year-over-year to $415.20 million for the fourth quarter, ended Dec. 31, 2021. Its non-GAAP earnings came in at $168 million, up 12.5% year-over-year, while its non-GAAP EPS came in at $3.51, up 6% year-over-year.
UTHR's revenue is expected to increase 12.3% year-over-year to $2.08 billion in 2023. Its EPS is estimated to increase 56.2% to $15.71 in 2022. The stock has lost 19.1% year-to-date to close Friday's session at $174.84.
UTHR has an overall A grade, which equates to a Strong Buy in our POWR Ratings system. Also, it has an A grade for Value and a B grade for Growth and Quality. It is ranked #8 of 422 stocks in the Biotech industry. Click here to see Momentum, Stability, and Sentiment ratings for UTHR
A shares were trading at $136.97 per share on Monday morning, up $1.26 (+0.93%). Year-to-date, A has declined -14.09%, versus a -4.43% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
The post Take Advantage of These 5 'Strong Buy' Stocks Down More Than 10% YTD appeared first on StockNews.com
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