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Given the pace and intensity of Fed tightening, it is very likely that the US will enter a recession in 2023. However, the potential for a soft landing remains amid a strong job market and resilient private consumption. Against this backdrop, blue chip stocks such as Gilead Sciences (GILD), Coca-Cola Consolidated (COKE) and Ooma (OOMA) have great growth potential and are ideal for this year. potential investment destination. let’s talk.
Investors are pondering the Fed’s next steps to steer the economy toward a “soft landing” that will contain inflation and avoid a recession.
To take advantage of this opportunity, explore the growth potential of stocks with strong fundamentals. Gilead Sciences (guild), Coca-Cola Consolidated Inc. (coke), Ohma Co., Ltd. (Oma) poised to generate significant profits in the future.
Sustained inflationary pressure is expected to keep the Fed on track to hike rates. The U.S. central bank is struggling to combat high inflation and may need to keep raising interest rates before loosening the accelerator.
Meanwhile, Federal Reserve Chairman Jerome Powell said:The disinflationary process has begun‘ Following the February meeting, a recent report from the Department of Commerce’s Bureau of Economic Analysis found that the Personal Consumption Expenditure (PCE) price index 5.4% increase Better than expected in January.
The next set of economic data could be important as the market tries to figure out whether future rate hikes will be on point. Investors are waiting for his February employment report. January’s blockbuster number The labor market has shown resilience despite aggressive Fed rate hikes.
On the bright side, a large gap between job opportunities and available workers is one reason economists believe the US has potential. avoid recession this year. Additionally, on the back of strong consumer spending and retail reports, Shark Tank investor Kevin O’Leary believes stocks are turning around. Returns of about 8% this yearbecause the US economy is flooded with cash and likely to manage a soft landing.
Given the current turbulent economic outlook, investors should emphasize adding quality stocks with a focus on earnings stability and high profitability. Fundamentally sound stocks GILD, COKE, and OOMA can be solid buyers today for solid returns down the road. These companies are leaders in their respective industries and are poised for sustained growth.
Gilead Sciences (guild)
GILD is a biopharmaceutical company focused on the development and commercialization of medicines to treat life-threatening diseases such as HIV, viral hepatitis and cancer.
GILD company Kite recently acquired Tmunity Therapeutics, a clinical-stage biotechnology company focused on next-generation CAR T therapies and technologies. This acquisition complements Kite’s existing in-house cell therapy research capabilities by adding additional pipeline assets, platform capabilities and a unique partnership with the University of Pennsylvania.
On February 3, GILD announced that the U.S. Food and Drug Administration (FDA) approved Trodelvy for the treatment of previously treated adult patients with HR+/HER2- metastatic breast cancer who had received prior endocrine therapy and at least two chemotherapy regimens. announced that it had
Additionally, in January, the European Medicines Agency also reviewed a similar type II variation marketing authorization application. Given the limited treatment options, such approval would allow more patients to access her Trodelvy across the EU.
On January 30, Kite and Arcellx, Inc. (ACLX) announced an agreement to co-develop and co-commercialize ACLX’s lead late-stage clinical CART-ddBCMA for the treatment of patients with relapsed or refractory multiple myeloma. announced a strategic alliance.
In the same month, GILD and EVOQ Therapeutics, Inc. announced a partnership and licensing agreement to advance EVOQ’s proprietary technology for treating rheumatoid arthritis (RA) and lupus. Under this agreement, GILD will exclusively license his EVOQ’s NanoDisc technology and obtain the rights to clinically develop and commercialize immunotherapy products.
On February 2, GILD increased its quarterly cash dividend by 2.7% to $0.75 per common share, payable on March 30, 2023. The company’s $3 annual dividend yields him 3.70% at current price levels. The company’s dividend payout has grown at a CAGR of 5% over the past three years and a CAGR of 7% over the past five years. GILD has a track record of increasing dividends for seven consecutive years.
GILD’s total revenues were $7.39 billion for the fourth quarter of the fiscal year ended December 31, 2022, up 2% year-over-year. Operating income increased 79.1% from the prior-year value to $2.7 billion, and non-GAAP attributable net income was $2.11 billion, an improvement of 143.2% year-over-year.
Additionally, the company’s adjusted EPS increased 142% from the prior year to $1.67.
For the second quarter ending June 30, 2023, GILD’s EPS is expected to be $1.72, up 8.8% year-over-year. Revenue for the quarter is expected to be 6.49 billion, up 3.6% year-over-year. The company has beaten consensus his EPS and earnings estimates in each of his four quarters since. This is promising.
GILD’s revenue and EBITDA have grown at a CAGR of 6.7% and 6.8%, respectively, over the past three years, while leveraged free cash flow has grown at a CAGR of 10.1%.
Twelve months after the stock price, the EBITDA margin was 47.93%, well above the industry average of 3.56%. Net profit margin over the last 12 months was 16.83%, matching the industry average of negative 7.24%.
Over the past year, the stock has gained 33.2% and closed its last trading session at $80.28.
GILD’s strong prospects are POWR ratingThe stock has an overall rating of A, which translates to a strong buy in our proprietary rating system. The POWR Rating is calculated by considering 118 different factors, with each factor being optimally weighted.
It also has an A grade for growth and value and a B grade for quality. Out of 399 stocks biotech It ranks second in the industry. To see other GILD ratings for Momentum, Stability, and Sentiment, click here.
Coca-Cola Consolidated Inc. (coke)
COKE and its subsidiaries manufacture, market and sell non-alcoholic beverages, primarily products of The Coca-Cola Company (unit) in the United States. We offer carbonated and still beverages, including energy products and still beverages. In addition, we sell products from various other beverage brands such as Dr. Pepper and Monster Energy.
On February 10, 2022, COKE paid a quarterly dividend of $0.50 per share, up 100% from the previous quarter. We also paid a special cash dividend of $3 per share to shareholders, supported by strong cash flow.
The company’s four-year average annual dividend yield is 0.32%, and a $2.00 annual dividend at current pricing levels yields 0.36%. The company’s dividend payout has increased at a CAGR of 7.7% over the past three years.
COKE’s 12-month ROCE was 47.08%, 377.9% higher than the industry average of 9.85%. Similarly, our 22.55% 12-month ROTA is 263.9% higher than the industry average of 6.20%.
COKE’s net sales for the fourth quarter of the fiscal year ended December 31, 2022 were $1.57 billion, an increase of 12.2% from the prior year. Non-GAAP operating income increased 90.8% year-over-year to $173.26 million and non-GAAP net income increased 100.6% year-over-year to $127.15 million.
The company posted net earnings per share of $12.61, an improvement of 512.1% year-over-year. In addition, carbonated and still beverage sales increased 19% and 7.4%, respectively, from the prior year period to $948.5 million and $468.1 million.
Over the past three years, COKE’s EBITDA and EBIT grew at a CAGR of 32.5% and 54.2%, respectively. Moreover, its net profit grew at a 235.7% CAGR over the same period.
COKE’s share price has risen 19.4% over the past six months and closed its final trading day at $543.10.
COKE’s strong fundamentals are reflected in its POWR rating. The overall rating is A, which corresponds to a strong buy in our own rating system.
There are A grades for growth and B grades for value, stability, emotion, and quality. Out of 37 A rated stocks beverage It ranks second in the industry. click here Check out COKE’s rating on Momentum.
Oma Co., Ltd. (Oma)
OOMA provides telecommunications services and related technology to business and individual customers in the United States and Canada. Its products include Ooma Business, Ooma Office, Ooma Enterprise, and Ooma AirDial.
On November 29, 2022, the company announced that T-Mobile for Business has launched Ooma AirDial, a POTS replacement solution, as part of its IoT portfolio. This reflects the growing demand for OOMA’s services and its vast market reach.
In the fourth quarter ended January 31, 2023, OOMA’s total revenue increased 11.9% year-on-year to $56.5 million. Gross profit increased 16.7% year-over-year to $35.96 million and non-GAAP operating income increased 26.9%. $4.02 million, % YoY.
The company’s non-GAAP net income and non-GAAP net income per share increased 26.8% and 23.1% year-over-year to $4.1 million and $0.16, respectively. Additionally, his adjusted EBITDA was $5.05 million, an increase of 26.5% from the same period last year.
Analysts expect OOMA’s revenue to grow 12.3% year-over-year to $56.5 million in the first quarter (ending April 30, 2023). EPS for the quarter is estimated to be $0.14, up 13.3% year over year. Plus, we’ve beaten our EPS estimates in each of the last four quarters, which is great.
OOMA revenue has grown at a CAGR of 12.6% and 13.6% respectively over the last 3 and 5 years. Also, Tang book value has increased at a CAGR of 36.4% over the past three years.
The stock’s 12-month gross margin was 63.68%, 28.3% above the industry average of 49.63%. Similarly, his asset turnover ratio in the last 12 months was 1.80x, 276.6% higher than his industry average of 0.48x.
Over the past six months, the stock has gained 3.6% and closed its last trading session at $12.95.
It’s no surprise that OOMA has an overall A rating. This corresponds to a strong buy in our unique rating system. An A rating for growth and a B rating for value, stability, and sentiment.Within Telecom – Domestic In the industry, it ranks second out of 19 stocks.
In addition to the POWR rating above, we also give OOMA ratings for Momentum and Quality.Get All OOMA Ratings here.
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guild stock. Year-to-date his GILD has fallen -6.49%, while the S&P 500 index has risen his 4.14% over the same period.
About the Author: Shweta Kumari
Shweta’s deep interest in financial research and quantitative analysis led him to pursue a career as an investment analyst. She uses her knowledge to help her private investors make informed investment decisions.
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