The Federal Reserve has raised the benchmark interest rates by 75 basis points for the second consecutive month to fight the multi-decades high inflation. While investors are worried that the economy is…
slipping into a recession, economists caution there’s no reason to panic. Moreover, according to experts, recessions have produced attractive opportunities for long-term investors.
Furthermore, robust corporate earnings reports, despite the challenging macro environment, are providing some optimism. Among the S&P 500 companies that have reported their latest quarterly reports as of July 30, almost 78% topped analyst expectations.
Given this backdrop, we think investors should consider investing in fundamentally sound stocks Playtika Holding Corp. (PLTK), Capri Holdings Limited (CPRI), Masonite International Corporation (DOOR), and Deluxe Corporation (DLX), which are poised to soar in the near term.
Playtika Holding Corp. (PLTK)
Headquartered in Herzliya Pituarch, Israel, PLTK develops mobile games worldwide. The company owns a portfolio of casual and casino-themed games.
PLTK’s revenues increased 5.9% year-over-year to $676.90 million in the fiscal quarter ended March 31, 2022. Net income stood at $83.20 million, up 133.1% from its year-ago value, while its net income per share increased 122.2% year-over-year to $0.20.
The consensus EPS estimate of $0.80 for the fiscal year ending December 2022 represents a 6.4% improvement year-over-year. The consensus revenue estimate of $2.73 billion for the same period represents a 5.6% increase year-over-year.
PLTK closed its last trading session at $13.03. The 12-month median price target of $20.40 indicates a 63.3% potential upside.
PLTK’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
PLTK is rated A in Value and B in Quality. Within the Entertainment – Toys & Video Games industry, it is ranked #5 of 22 stocks. Click here to see additional POWR Ratings for Growth, Momentum, Sentiment, and Stability for PLTK.
Capri Holdings Limited (CPRI)
Headquartered in London, United Kingdom, CPRI designs, markets, distributes, and retails branded women’s and men’s apparel, footwear, and accessories through three segments: Versace; Jimmy Choo; and Michael Kors.
CPRI’s total revenues increased 24.6% year-over-year to $1.49 billion in the fiscal quarter ended April 2, 2022. Gross profit came in at $956 million, up 29.7% year-over-year, while its net income grew 144.5% from the year-ago value to $81 million. The company’s net income per share increased 144.6% from the prior-year quarter to $0.54 in the same period.
Analysts expect CPRI’s revenue for the fiscal quarter ending September 2022 to come in at $1.39 billion, indicating an increase of 6.8% year-over-year. Also, the company’s EPS is expected to grow 2.2% year-over-year to $1.56 in the same period. It has an impressive earnings surprise history, as it topped Street EPS estimates in three of the trailing four quarters.
CPRI has gained 19.8% over the past month to close the last trading session at $49.40. Its 12-month median price target of $69.87 indicates a 42.6% potential upside.
It is no surprise that CPRI has an overall rating of B, equating to Buy in our POWR Ratings system. The stock also has a B grade in Quality. In the B-rated Fashion & Luxury industry, the company is ranked #17 of 67 stocks.
Beyond what we have stated above, we’ve also rated CPRI for Growth, Value, Stability, Sentiment, and Momentum. Get all the CPRI ratings here.
Masonite International Corporation (DOOR)
DOOR designs, manufactures, markets, and distributes interior and exterior doors for new construction and repair, renovation, and…
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