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The Fed’s multiple rate hikes to curb persistently high inflation have raised new concerns among investors. But with inflation slowing and a moratorium on rate hikes this month, the gaining momentum of Lowe’s Corporation (L), Liberty Energy (LBRT) and Keytronic (KTCC) could be solid buys now. . read….
The stock market continues to come under great pressure from soaring inflation and Fed tightening. Given that the market turmoil is unlikely to subside anytime soon, investors may consider Lowe’s Corporation (L.), Liberty Energy Corporation (LBRT), Keytronic Co., Ltd. (KTCC), gaining significant momentum.
Several macroeconomic challenges and geopolitical turmoil are weighing on investor optimism. The Fed’s series of interest rate hikes to cut liquidity and curb inflation at its highest level in decades has raised fears of an economic downturn.
However, as a result of the tightening monetary policy, Inflation falls to its lowest level In addition, consumers and investors will be spared another rate hike in June, first break in 15 months continuous increase.
However, since Employment still better than expected Inflation remains above the desired range of 2%, Federal Reserve Chairman Jerome Powell suggested Further hikes in 2023.
Some experts fear that a rate hike could have an intolerable impact on the economy in 2023. Also, the 10-year Treasury yield, long regarded as an indicator of a Wall Street recession, that is most inverted since Marchmaking those fears even worse.
Deutsche Bank predicted Some believe the U.S. economy could enter a “moderate recession” starting in the last three months of this year and through the first three months of 2024. The economy is expected to shrink by 0.4% from 1.4% growth this year.
On the contrary, along with Moody’s Analytics chief economist Mark Zandy, Goldman Sachs Group (GS) and Bank of America Corporation (BACs) was expressed optimistic outlook About the US economy in 2023.
Given that this market uncertainty may continue for some time, it may be prudent to add quality momentum stocks with attractive valuations, L, LBRT and KTCC, to your portfolio now. there is.
Loews Corporation (L.)
L provides commercial property and casualty insurance in the United States and abroad. The company offers specialized insurance products such as managerial and professional liability, other indemnification products, bond and loyalty bond, property insurance and property and casualty insurance.
The company repurchased 8.2 million shares of its common stock for a total of $486 million over the three-month period ending March 31, 2023.
L paid its shareholders a quarterly dividend of $0.0625 per share on June 6, 2023. The annual dividend he paid is $0.25 per share, giving a dividend yield of 0.43%. The company has paid dividends for 33 consecutive years.
In terms of 12-month EV/EBITDA, Company L’s 10.07x is 19.2% lower than the industry average of 12.46x. 0.96x price/sales in the last 12 months is 58.4% lower than the industry average of 2.31x.
Company L’s operating cash for the last 12 months was $3.61 billion, well above the industry average of $147.2 million. Similarly, 4.84% of capex/sales is 152.5% above the industry average of 1.92%.
In the first quarter of the fiscal year ended March 31, 2023, L’s total revenue increased 11.2% year-over-year to $3.78 billion. Adjusted EBITDA increased 28.4% year-on-year to $86 million. Net income attributable to L and net income per share increased 16.5% and 24.8% year-over-year to $375 million and $1.61, respectively.
The company’s net cash flow from operations was $719 million, up 70% year over year.Furthermore, the retained earnings As of December 31, 2022, it was $14.93 billion, while as of March 31, 2023, it was $15.29 billion.
Over the past three months, L’s stock has surged 3.9% to close at $58.23. The stock is trading above the 50-day moving average of $57.91 and the 200-day moving average of $57.19, showing an upward trend.
Mr. L power rating reflects this promising outlook. This stock has an overall rating of B, which corresponds to a ‘Buy’ on our proprietary rating system. POWR Ratings values stocks by 118 different factors, each with its own weighting.
Momentum, Stability, and Sentiment are rated B. It is ranked 8th out of 56 B-rated stocks. Insurance – Liability industry.
Besides the ones highlighted above, you can also see additional L ratings for growth, value, and quality. here.
Liberty Energy Corporation (LBRT)
LBRT provides hydraulic services and related technology to onshore oil and gas exploration and production companies in North America. The company owns and operates two sand mines and approximately 40 active hydraulic fracturing units in the Permian Basin.
During the quarter ended March 31, 2023, LBRT repurchased and canceled 5,166,730 shares of Class A common stock, representing 2.9% of its outstanding shares, at $14.44 per share for approximately $75 million.
On April 18, LBRT’s board of directors announced a dividend of $0.05 per share of Class A common stock, payable to shareholders on June 20, 2023. pays an annual dividend of $0.20 per share. This translates to a 1.50% yield on his current stock price.
In terms of non-GAAP future PER, LBRT trades at 3.67x, 58.7% lower than the industry average of 8.86x. The company’s future EV/EBITDA multiple is 2.12, 58.7% lower than the industry average of 5.14.
LBRT’s 40.24%, 25.53% and 20.56% of ROCE, ROTC and ROTA for the last 12 months are 69.3%, 127.7% and 133.3% higher than the industry average of 23.77%, 11.21% and 8.81% respectively. Similarly, our asset turnover ratio of 1.87x is 188.8% above the industry average of 0.65x.
LBRT Revenues of $1.26 Billion, Up 59.2% Year-Over-Year in the First Quarter of the Fiscal Year Ended March 31, 2023, Operating Profit of $225.12 Million, Significant Year-on-Year Growth Did.
Net income attributable to LBRT stockholders and net income per common share were $162.66 million and $0.90. This compares to a net loss of $5.38 million, or a net loss of $0.03 per common share, in the year-ago quarter.
LBRT’s revenue and EPS for the second quarter of the fiscal year ending June 2023 are expected to grow 38% and 69.4% year-on-year to $1.3 billion and $0.97, respectively. Plus, he’s beat consensus earnings and EPS expectations in all four quarters since, which is encouraging.
Over the past three months, the stock has surged 3.6% to close at $13.31. Shares have risen 3.2% over the past month. The company’s shares are currently trading above the 50-day moving average of $12.91.
It’s no surprise that LBRT has an overall B rating. This translates to a “purchase” in the POWR rating system.
A grade for value, B grade for growth and momentum. 44 shares or less Energy – Services Ranked 8th in the industry.
click here View LBRT sentiment, quality, and stability ratings.
Keytronic Co., Ltd. (KTCC)
KTCC provides contract manufacturing services to Original Equipment Manufacturers (OEMs). The company offers integrated electronic and mechanical engineering, assembly, procurement and procurement, logistics, and new product testing services.
of KTCC trailing 12 months EV/EBITDA of 10.12x is 32.7% lower than the industry average of 15.04x.this is trailing 12 months A price/sales multiple of 0.11 is 96.3% lower than the industry average of 2.84.
KTCC’s last 12-month ROTA is 1.17%, well above the industry average of 0.02%. Similarly, our asset turnover ratio of 1.31x is 115.5% higher than the industry average of 0.61x.
For the third quarter of the fiscal year ending April 1, 2023, KTCC’s net revenue increased 18.9% year-on-year to $164.55 million and gross profit increased 24.1% year-over-year to $14.28 million.
Net earnings increased 96.2% year-over-year to $1.98 million, representing net earnings per share of $0.18, up 100% year-over-year. Additionally, total current assets increased from $340.01 million as of July 2, 2022 to $360.27 million as of April 1, 2023.
KTCC expects revenue of $150 million to $160 million and earnings per share of $0.10 to $0.20 in the fourth quarter of fiscal 2023.
Over the past six months, the stock has gained 22.9% and closed at $5.52. It rose 1.3% during the day. The stock is trading above its 200-day moving average of $5.43.
KTCC’s strong fundamentals are reflected in its POWR rating. The overall rating is B, which is equivalent to “Buy” in our own rating system.
Growth and Momentum are A grades, Value, Stability and Sentiment are B grades.Within Technology – Service In the industry, it is ranked 13th out of 81 stocks.
To check the KTCC additional rating (Quality), click here.
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L shares were trading at $58.04 a share Thursday morning, down $0.19 (-0.33%). Year-to-date, the L index is down -0.29%, while the benchmark S&P 500 index is up 14.60% over the same period.
About the Author: Sristi Suman Jayaswar
Her interest in stock market movements as a student led her to become a financial journalist. Investing in undervalued stocks with stable long-term growth prospects is her preferred strategy. With a master’s degree in Accounting and Finance, Ms. Sristi wants to deepen her investment research experience and better guide investors.
post 3 stocks with buying momentum first appeared in stocknews.com