4 Stocks That Are Long-Term Winners
In an uncertain market environment, investors must look for stocks that could win in the long run based on their strong fundamentals and solid growth prospects. We think Walmart (WMT),...
In an uncertain market environment, investors must look for stocks that could win in the long run based on their strong fundamentals and solid growth prospects. We think Walmart (WMT), Tennant (TNC), Commvault Systems (CVLT), and Vertex Pharmaceuticals (VRTX) could be good choices on that front. Read on to learn more….
The stock market has endured significant pain since the beginning of the year due to various macroeconomic and geopolitical headwinds. Wall Street expects a recession later this year due to the Fed's aggressive interest rate hikes, which could put further pressure on the stock market.
However, long-term investors should not be bothered about short-term market fluctuations. Rather than trying to navigate the short-term turbulence, they should buy the dip in stocks that have the potential to deliver solid returns based on their strong revenue and earnings growth.
We think, quality stocks Walmart Inc. (WMT), Tennant Company (TNC), Commvault Systems, Inc. (CVLT), and Vertex Pharmaceuticals Incorporated (VRTX) could gain substantially in the long run. So, it could be wise to add them to your portfolio now.
Walmart Inc. (WMT)
Famous retailer WMT operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, membership-only warehouse clubs, and e-commerce websites, including walmart.com and Walmart.com.mx flipkart.com, and others. The company operates through the Walmart U.S., Walmart International, and Sam's Club segments.
On June 29, 2022, WMT announced that it had agreed to acquire Memomi, which reinforces WMT's commitment to frictionless and omnichannel optical care. WMT's Health & Wellness VP, Specialty Services, David Reitnauer, said, "This acquisition supports our Health & Wellness mission to provide accessible care to the communities we serve."
WMT's revenue increased 2.4% year-over-year to $141.56 billion for the first quarter ended April 30, 2022. The company's current assets increased 8.6% year-over-year to $83.22 billion. In addition, its long-term debt declined 20.1% year-over-year to $32.17 billion.
Analysts expect WMT's EPS for fiscal 2024 to increase 8.4% year-over-year to $6.97. Its revenue for fiscal 2023 is expected to increase 4.2% year-over-year to $596.97 billion. It surpassed Street EPS estimates in three of the trailing four quarters. Over the past month, the stock has declined 1.7% to close the last trading session at $121.98.
WMT POWR Ratings reflect solid prospects. According to our proprietary rating system, it has an overall rating of B, translating to a Buy. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Stability. It is ranked #23 out of 38 stocks in the A-rated Grocery/Big Box Retailers industry. Click here to see the other ratings of WMT for Growth, Value, Momentum, Sentiment, and Quality.
Tennant Company (TNC)
TNC designs, manufactures, and markets floor cleaning equipment. It offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IRIS, VLX, IPC, Gaomei, Ronge, and Rongen brands.
On April 5, 2022, TNC introduced lithium-ion technology to their portfolio of AMR machines, including the T380AMR, T7AMR, and T16AMR. TNC's Senior VP, Innovation and Technology, Barb Balinski, said, "With longer run times and hassle-free maintenance, lithium-ion powered robotic scrubbers will help our customers increase their cleaning efficiency and optimize employee resources even more."
For the fiscal first quarter ended March 31, 2022, TNC's net sales declined 2% year-over-year to $258.10 million. The company's adjusted EBITDA decreased 31.4% year-over-year to $27.90 million. Also, its current liabilities declined 8.2% to $266.40 million, compared to $290.30 million for the fiscal year ended December 31, 2021.
For fiscal 2023, TNC's EPS is expected to increase 10.5% year-over-year to $4.73. Its revenue for the quarter ended September 30, 2022, is expected to increase 11.3% year-over-year to $302.80 million. It surpassed consensus EPS estimates in three of the trailing four quarters. Over the past month, the stock has gained 5.9% to close the last trading session at $63.05.
TNC's POWR Ratings reflect this promising outlook. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It has a B grade for Value, Stability, and Quality. It is ranked #2 out of 80 stocks in the B-rated Industrial – Machinery industry. To see the other ratings of TNC for Growth, Momentum, and Sentiment, click here.
Commvault Systems, Inc. (CVLT)
CVLT is a leader in delivering data readiness, enabling its customers to intelligently manage data with solutions that store, protect, optimize, and use data. Its software automates tasks and uses data, enabling its customers to make informed business decisions. Also, its solutions work in the cloud, SaaS, and on-premise environments.
CVLT's total revenues increased 7.9% year-over-year to $197.98 million for the first quarter ended June 30, 2022. The company's Services segment revenue increased 4.2% year-over-year to $105.54 million. Also, its non-GAAP EPS came in at $0.64, representing an increase of 3.2% year-over-year.
Analysts expect CVLT's EPS and revenue for fiscal 2024 to increase 22.4% and 7.3% year-over-year to $3.16 and $871.53 million, respectively. It surpassed Street EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has lost 9.5% to close the last trading session at $55.23.
CVLT's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Growth and Value. It is ranked #4 out of 154 stocks in the Software – Application industry. Click here to see the other ratings of CVLT for Momentum, Stability, and Sentiment.
Vertex Pharmaceuticals Incorporated (VRTX)
VRTX is a biotechnology company focusing on developing and commercializing therapies to treat cystic fibrosis (CF) and advancing its research and development programs in other indications. The company's marketed medicines include TRIKAFTA/KAFTRIO, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO.
On January 11, 2022, VRTX announced that the European Commission had approved the label extension of KAFTRIO (ivacaftor/tezacaftor/elexacaftor) in a combination regimen with ivacaftor for treating patients with cystic fibrosis in the age group 6-11 who have at least one F508del mutation in the cystic fibrosis transmembrane conductance regulator gene.
For the fiscal first quarter ended March 31, 2022, VRTX's non-GAAP operating income increased 16.4% year-over-year to $1.16 billion. The company's non-GAAP net income increased 16.1% year-over-year to $907 million. Also, its non-GAAP EPS came in at $3.52, representing an increase of 18.1% year-over-year.
For the quarter ended June 30, 2022, VRTX's EPS is expected to increase 13.2% year-over-year to $3.52. Its revenue for the quarter ending September 30, 2022, is expected to increase 16.3% year-over-year to $2.16 billion. It surpassed Street EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 56.5% to close the last trading session at $288.22.
VRTX's POWR Ratings reflect solid prospects. The company has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Growth and Value. It is ranked first out of 401 stocks in the Biotech industry. Click here to see the additional ratings of VRTX for Momentum, Stability, and Sentiment.
WMT shares rose $0.42 (+0.34%) in premarket trading Wednesday. Year-to-date, WMT has declined -14.71%, versus a -16.35% 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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