The stock market had a difficult first half this year amid record high inflation levels, the Fed’s hawkish tilt to fight it, and lingering geopolitical issues. Moreover…
the policymakers have indicated continued rate hikes until inflation comes down to the 2% target.
However, the benchmark indexes have significantly recovered on the backs of stronger than expected corporate results and a July inflation report showing cooling price increases. The S&P 500 gained 9.1% in the previous month, its highest monthly gain since November 2020.
Although investors’ sentiments have improved lately, market volatility is rife. According to a J.P. Morgan Wealth Management study, 88% of investors are still concerned about rising inflation and interest rates.
Amid such market turmoil, it could be wise to invest in shares of mega-cap companies with stable revenue and earnings streams. We think AT&T Inc. (T), Glencore plc (GLNCY), KDDI Corporation (KDDIY), Vale S.A. (VALE), and Ford Motor Company (F), which are currently trading below $20 and are undervalued, could be ideal additions to your portfolio.
AT&T Inc. (T)
With a market cap of $129.19 billion, T provides telecommunications, media, and technical services worldwide.
On August 4, AT&T and Warner Bros. Discovery announced an agreement allowing T to continue offering internet and mobility customers access to HBO Max’s original programming and series portfolio. This demonstrates the company’s proven excellence in the field and marks an important step in its continued success.
T’s net income increased 142.1% year-over-year to $4.54 billion in the fiscal second quarter of 2022. Its EPS grew 154.5% from the year-ago value to $0.56.
Moreover, T surpassed the consensus EPS estimates in each of the trailing four quarters.
In terms of its forward EV/EBITDA, T is currently trading at 7.31x, 14.6% lower than the industry average of 8.56x. Its forward Price/Cash Flow multiple of 3.65 is 58.7% lower than the industry average of 8.84.
T gained 1.7% over the past six months to close the last trading session at $18.06.
T’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
T also has a B grade in Value. It is ranked #3 of 20 stocks in the B-rated Telecom – Domestic industry.
Beyond what is stated above, we’ve also rated T for Growth, Quality, Momentum, Sentiment, and Stability. Get all the T ratings here.
Glencore plc (GLNCY)
GLNCY produces, refines, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Marketing Activities; and Industrial Activities. The company has a market cap of $78.04 billion.
On June 1, GLNCY completed its previously announced $200 million investment in Li-Cycle Holdings Corp. (LICY), an industry leader in lithium-ion battery resource recovery and recycling in North America, through the purchase of a five-year convertible note; and executed long-term commercial agreements with LICY. This strategic collaboration should help the company achieve its…
Continue reading at STOCKNEWS.com
