5 Amazing Stocks You Won’t Ever Regret Buying
Investor sentiments are rising due to the Fed’s indication that it is slowing down the pace of interest rates hikes and the fact that inflation is falling. The November employment report was also better than expected. We believe quality stocks Pfizer, AstraZeneca PLC(AZN), Carrier Global [CARR], J. Jill (“JILL”) and Lifeway Foods (“LWAY”) are worth keeping. ….
This year the stock market has been adversely affected by multi-decade high inflation, aggressive rate hikes by the Fed to curb the price rise, and geopolitical turmoil. The October CPI report showed signs of cooling inflation and the Fed’s indications to increase rates at a slower pace. This has raised consumer sentiments.
Moreover, the November jobs report came in better than expected, with nonfarm payrolls increasing by 263,000 for the month versus the Dow Jones estimate of 200,000. These numbers are a strong indicator of the economy’s strength, despite the Fed continuing to hike rates due to the hot job market. Additionally, Bank of America CEO Brian Moynihan expects a “mild recession” next year, providing optimism about the state of the economy.
While markets usually rejoice in the “Santa Claus rally” during the holiday season, this year, investors have a lot to worry about due to economic uncertainties.
However, we believe investors should consider adding fundamentally strong stocks Pfizer Inc. (PFE), AstraZeneca PLC (AZN), Carrier Global Corporation (CARR), J.Jill, Inc. (JILL), and Lifeway Foods, Inc. (LWAY) to their portfolios.
Pfizer Inc. (PFE)
PFE discovers, develops, manufactures, distributes, and sells biopharmaceutical products worldwide. It offers vaccines and medicines in a variety of therapeutic areas. The company supplies medicines and vaccines to wholesalers, pharmacies, hospitals, clinics, government agencies, and disease control/prevention centers.
On November 3, PFE announced that its investigational cancer immunotherapy, elranatamab, received Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for treating people with relapsed or refractory multiple myeloma (RRMM).
This marks PFE’s twelfth FDA Breakthrough Therapy Designation in Oncology, a testament to our relentless commitment to developing transformational cancer medicines in areas of high unmet need.
On October 20, PFE and Erasca, Inc. (ERAS) announced a clinical trial collaboration and supply agreement for the CDK4/6 inhibitor palbociclib. This agreement is expected to fund a clinical proof-of-concept study of ERAS-007, an oral ERK1/2 inhibitor, in combination with palbociclib for treating patients with KRAS- and NRAS-mutant colorectal cancer and KRAS-mutant pancreatic ductal adenocarcinoma.
This agreement should bolster its capabilities and be beneficial amid the rising cancer cases worldwide.
On October 5, PFE announced that it had completed the acquisition of Global Blood Therapeutics, Inc. (GBT), a biopharmaceutical company that deals with sickle cell disease (SCD). The acquisition reinforces Pfizer’s commitment to SCD, building on a 30-year legacy in the rare hematology space.
On September 22, PFE declared a quarterly dividend of $0. 40 per share on its common stock, which was payable to shareholders on December 5. This is a reflection of the company’s shareholder return ability.
During the fiscal third quarter ended September 2022, PFE’s income from continuing operations improved 5.8% year-over-year to $8. 65 billion. Its non-GAAP adjusted net income attributable to Pfizer Inc. common shareholders rose 39.7% year-over-year to $10. 17 billion, while its adjusted EPS grew 40.2% year-over-year to $1.78.
Streets expect PFE’s EPS for the current fiscal year ending December 2022 to be $6. 47, indicating a 46.4% improvement year-over-year. The company’s revenue is likely to increase 23.3% year-over-year to $100. 21 billion in the same year. PFE also topped consensus EPS estimates in all four quarters, which is quite impressive.
The stock has gained 11.4% over the past three months to close its last trading session at $50.91. It has also gained 7.8% in the past month.
PFE’s POWR Ratings reflect this promising outlook. This company has an overall rating A which is equivalent to Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
PFE is rated an A in Value and a B in Growth, Sentiment, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #2 out of 162 stocks.
Click here to see additional POWR Ratings for Momentum and Stability for PFE.
AstraZeneca PLC (AZN)
Headquartered in Cambridge, the United Kingdom, AZN focuses on discovering, developing, manufacturing, and commercializing prescription medicines.
On November 29, AZN announced an agreement to acquire Neogene Therapeutics Inc. (Neogene), a global clinical-stage biotechnology company. AZN and Neogene share a common goal to bring cell therapies to patients suffering from solid tumors. Neogene’s expertise with TCR-T development, manufacturing, and discovery will help to strengthen AZN’s efforts to improve patient outcomes.
On November 16, Alexion, AstraZeneca Rare Disease, announced the completion of its acquisition of LogicBio(r) Therapeutics, Inc. (LOGC), a pioneering genomic medicine company. This acquisition will allow Alexion to grow its genomic medicine business through its unique technology, rare disease R&D team and expertise in preclinical development.
AZN’s total revenue increased 11.3% year-over-year to $10. 98 billion in the fiscal third quarter ended September 30, 2022. Its gross profit improved 31% year-over-year to $8 billion over the period, while its EBITDA increased 131.5% from its year-ago value to $2. 58 billion.
AZN’s earnings per share for the quarter ended September 30, 2022, came to $1. 06 compared to the loss per share of $1. 10 for the quarter ended September 30, 2021.
AZN’s EPS for the fiscal period ending December 2022 is expected to improve 69.5% year-over-year to $4.48. Its consensus revenue estimate of $44. 44 billion represents an 18.8% growth year-over-year for the same period.
AZN’s shares have gained 26.3% over the past year to close the last trading session at $68.47. Moreover, the stock has gained 12.8% over the past three months.
The company has an overall rating of B, translating to Buy in our proprietary rating system. AZN has been rated A for Sentiment, and B for Growth. Within the Medical – Pharmaceuticals industry, it is ranked #17.
Click here for additional POWR Ratings for AZN for Value, Stability, Quality, and Momentum.
Carrier Global Corporation (CARR)
CARR provides heating, ventilating, air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. It operates through the HVAC and Refrigeration segments.
Recently, CARR forged innovative agreements with the United Nations World Food Programme (WFP) and the African Centre of Excellence for Sustainable Cooling and Cold-chain (ACES) to help advance cold chain development and training in Africa.
Tim White, CARR’s President, Refrigeration, said, “Collaborative efforts between the public and private sectors can drive transformational cold chain development and growth.”
On October 23, CARR’s board of directors declared a quarterly dividend of $0. 15 per outstanding share of Carrier common stock, which was payable on November 21. This is a reflection of the company’s cash generation capabilities.
CARR’s total net sales increased 2.1% year-over-year to $5. 45 billion for the third quarter ended September 30, 2022. The company’s adjusted EPS came in at $0.70. For the nine months ended September 30, cash and cash equivalents, end of period increased 11.8% year-over-year to $2. 99 billion.
Analysts expect CARR’s EPS and revenue for the first quarter ending March 2023 to increase 3.8% and 10.6% year-over-year to $0. 56 and $5. 15 billion, respectively. It exceeded Street EPS estimates in each quarter.
Shares of CARR have increased 12.9% over the past six months and 10.9% over the past month to close the last trading session at $44.68.
CARR’s strong prospects are reflected in its POWR Ratings. It is rated A overall, which corresponds to a Strong Buy according to our proprietary rating system.
CARR has a B grade for Value, Sentiment, and Quality. CARR is ranked #6 out of 47 stocks in the B-rated Industrial – Building Materials industry.
Click here to access CARR’s Growth, Momentum, and Stability grades.
J.Jill, Inc. (JILL)
JILL is an omnichannel retailer of women’s clothing, emphasizing the 45 age segment. The business sells its products through retail locations, catalogs, and a website. It runs an e-commerce website and 249 outlets across the country.
Claire Spofford, President and CEO of JILL, said, “As we look to the remainder of the year, we plan to continue to execute against our initiatives, including investing in our plans for long-term profitable growth while remaining prudent with our expectations related to the consumer.”
“As part of our growth strategy, we focus on modernizing the J. Jill brand to increase relevance with both new and loyal customers. “We recently announced our Welcome Everybody’ campaign, which aims to deliver an elevated shopping experience in both online and offline stores that celebrates the totality of women.” she said.
For the fiscal 2023 second quarter ended July 30, 2022, JILL’s net sales increased 0.7% year-over-year to $160. 34 million, while its gross profit grew 2.9% from the year-ago value to $112. 47 million. Its operating income increased 19.9% year-over-year to $28. 19 million.
Furthermore, the company’s adjusted net income for the second quarter ended July 30, 2022, increased 34.6% to $17. 69 million. Its adjusted net income per share was $1. 24, up 33.3% year-over-year.
Analysts expect JILL’s revenue for the fiscal year ending January 2023 to increase 4% year-over-year to $608. 80 million. The company’s EPS for the year is expected to increase 26.8% from the previous year to $2.70. JILL has also exceeded its EPS estimates in all four quarters. This is quite impressive.
The stock has gained 65% over the last year and 52.3% over the past three months to close the last trading session at $24.75.
JILL’s POWR Ratings reflect its strong prospects. Our proprietary rating system rates the stock as a Strong Buy. The overall rating is A.
The stock has an A grade for Quality and Sentiment and a B for Value. JILL is ranked first among 66 stocks in the Fashion & Luxury industry.
Click here to see the additional POWR Ratings of JILL for Growth, Momentum, and Stability.
Lifeway Foods, Inc. (LWAY)
LWAY produces, markets, and sells probiotic-based products internationally. Drinkable kefir is the company’s main product. It is a cultured dairy product. The company also offers European-style soft cheeses. The company sells its products under the brand names Lifeway and Fresh Made, as well as under private labels.
Julie Smolyansky, LWAY’s President and CEO, stated, “We have recently gained traction within the convenience channel and see this as an opportunity to build brand awareness and introduce new consumers to our single-serve products. We look forward to finishing the year strong and preparing for a healthy 2023.”
LWAY’s net sales increased 29.1% year-over-year to $38. 14 million in the third quarter ended September 30, 2022. Gross profit rose 8.5% to $7. 59 million. Its net income increased 104.8% year-over-year to $983K. Also, its EPS came in at $0. 06, representing an increase of 100% year-over-year.
Analysts expect LWAY’s EPS and revenue for the fiscal year ending December 2023 to increase 375% and 5% year-over-year to $0. 38 and $152 million, respectively.
The stock has gained 48.5% year-to-date to close the last trading session at $6.83. Moreover, it gained 14.2% over the past month.
It’s no surprise that LWAY has an overall rating of A, which equates to a Strong Buy in our POWR Ratings system.
PFE shares were trading at $50. 62 per share on Monday morning, down $0. 29 (-0.57%). Year-to-date, PFE has declined -11. 49%, versus a -13. 97% rise in the benchmark S&P 500 index during the same period.
About the Author: Sristi Suman Jayaswal
The stock market dynamics sparked Sristi’s interest during her school days, which led her to become a financial journalist. She prefers to invest in stocks that are undervalued but have solid long-term growth prospects.
Having earned a master’s degree in Accounting and Finance, Sristi hopes to deepen her investment research experience and better guide investors.
The author of 5 books, 3 of which are New York Times bestsellers. I’ve been published in more than 100 newspapers and magazines and am a frequent commentator on NPR.