Would You like a feature Interview?
All Interviews are 100% FREE of Charge
The recent resilience in economic data has given the Fed room to raise rates, but it also raises the possibility that the economy will slow. Investors may therefore be wise to buy value stocks such as Mercedes-Benz Group AG (MBGAF), McKesson (MCK) and Mistras Group (MG). read more.
High inflation and the possibility of another rate hike are increasing the likelihood of a recession later this year. So I introduce the value stock of Mercedes-Benz Group AG (MBGAF), Mackeson Corporation (Mac), Mystras Group Co., Ltd. (MG) may bring long-term benefits.
High inflation and better-than-expected consumer spending put the Fed in a tough spot.Personal consumption expenditure rose 0.8% last month After rising 0.1% in March,
In addition, a Reuters poll of economists forecast a 0.4% rise in consumer spending. Robust private consumption is underpinned by rising wages in a tight labor market. Wages rose 0.5% in April compared with 0.3% in March.
Federal Reserve policymakers will likely raise the target range for the federal funds rate at their next meeting, according to the CME FedWatch tool. Members of the Federal Open Market Committee are: 70.5% likely to opt for a 25 basis point increase It will be reflected in the benchmark interest rate at the next meeting.
Furthermore, the New York Fed’s Recession Probability Index is 68.2% chance of US recession Sometime within the next 12 months. This is the highest number in more than 40 years.
Take a look at the brands above.
Mercedes-Benz Group AG (MBGAF)
Headquartered in Stuttgart, Germany, MBGAF operates as an automotive company both in Germany and abroad. The company develops, manufactures and markets premium and luxury vehicles and vans under the Mercedes-AMG, Mercedes-Benz, Mercedes-Maybach and Mercedes-EQ brands, as well as related spare parts and accessories.
Forward of MBGAF EV/Sales 1.05x is 4% lower than the industry average of 1.10x. The company’s future P/S multiple is 0.49, 38.3% below the industry average of 0.80.
The company will pay an annual dividend of $5.72, yielding 7.49% at current price levels. The four-year average dividend yield is 4.98%.
MBGAF’s revenues for the first quarter of the fiscal year ended March 31, 2023 were €37.52 billion ($40.08 billion), an increase of 7.6% year-on-year. Net profit increased by 11.9% year-on-year to €4.01 billion ($4.28 billion). Earnings per share increased by 13.2% year-on-year to €3.69.
MBGAF’s second-quarter EPS for the fiscal year ending June 2023 is expected to be $3.74, up 26.9% year-over-year. The company’s revenue for the quarter is expected to grow 14.6% year over year to $42.62 billion. It also beat his earnings expectations for each of the next four quarters, which is great.
MBGAF’s stock has surged 32.8% over the past nine months to close at $74.82.
of MBGAF power rating It reflects its promising prospects. The overall rating for this stock is ‘A’, which corresponds 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.
The stock is graded B for growth, quality, value, stability and sentiment. Ranked #1 out of 58. Automobiles and car manufacturers industry.
In addition to the above, we also assessed MBGAF’s momentum.Get all MBGAF ratings here.
Mackeson Corporation (Mac)
MCK provides healthcare services in the United States and internationally. The company operates through his four segments. Prescription Technology Solutions (RxTS); Medical and Surgical Solutions; and International.
MCK’s future EV/sales of 0.19x is 94.7% lower than the industry average of 3.56x. The company’s future P/S multiple is 0.18, 95.8% lower than the industry average of 4.19.
On April 27, the company announced a quarterly dividend of $0.54 to be paid on July 3, 2023.
The company pays an annual dividend of $2.16, equivalent to a yield of 0.56% at current price levels. The four-year average dividend yield is 0.86%.
MCK revenue for the fourth quarter of the fiscal year ended March 31, 2023 was $68.91 billion, up 4.2% year-over-year. Adjusted earnings increased 14% year over year to $992 million. Adjusted earnings per share increased 23.3% year-over-year to $7.19.
Street expects MCK’s first quarter revenue for the fiscal year ending June 2023 to grow 4.4% year over year to $70.07 billion. EPS for the quarter is expected to be slightly $5.88 year over year. Also, after that he beat revenue and his EPS expectations in three of the four quarters.
Shares have surged 18.9% over the past year to close at $390.84.
MCK’s solid outlook is reflected in its POWR rating. This stock has an overall rating of ‘A’, which corresponds to a ‘strong buy’ in our proprietary rating system.
MCK is rated B for Growth, Quality, Value, Stability and Sentiment. Ranked 3rd out of 74 stocks. medical services industry.
click here Check out additional POWR ratings for MCK (Momentum).
Mystras Group Co., Ltd. (MG)
MG provides technology-enabled asset protection solutions worldwide. The company operates through his three segments. international; products and systems;
MG’s future EV/sales of 0.59x is 63% lower than the industry average of 1.59x. The company’s future P/S multiple is 0.31, 74.9% lower than the industry average of 1.24.
MG’s revenue for the first quarter of the fiscal year ended March 31, 2023 increased 3.9% year-over-year to $168.02 million. Gross profit increased 15.5% year-over-year to $46.08 million. Adjusted EBITDA increased 88.1% year-on-year to $10.42 million.
Shares have surged 78.2% over the past six months to close at $7.02.
MG’s strong fundamentals are reflected in its POWR rating. This stock has an overall rating of A, which corresponds to a ‘strong buy’ in our proprietary rating system.
MG also has a B grade for Growth, Sentiment, and Value. It ranks second out of 41 B-rated stocks. Outsourcing – Business Services industry.
To access additional ratings on MG’s quality, stability, and momentum, click here.
10 brands I want to sell right now!
Discover 10 widely held stocks that our proprietary model has shown to have significant downside potential. Make sure it is neither of these. ”death trap“Having stocks in your portfolio:
10 brands I want to sell right now! >
MBGAF shares were trading at $75.30 per share on Thursday morning, up $0.48 (up 0.64%). Year-to-date, MBGAF is up 15.14%, while the benchmark S&P 500 Index is up 9.80% over the same period.
About the Author: Nidhi Agarwal
Nidhi’s passion for capital markets and wealth management inspired him to pursue a career as an investment analyst. She has a Bachelor’s degree in Finance and Marketing and is in the CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities.
post 3 value stocks to buy today first appeared in stocknews.com