The latest federal rate increases have aggravated the ongoing market correction, and investor sentiment is very bearish across all sectors. Despite tightening monetary policies, high core inflation is raising the…
probability of a recession. Recently, the S&P 500 index sank to its lowest level since March 2021. And the fear of more stringent monetary policies soon is expected to keep the markets under pressure in the near term.
Though large-cap stocks tend to be dependable and offer stable returns during periods of market volatility, those that are overvalued, with weak fundamentals, may not be as beneficial. The bearish investor sentiment regarding large-cap stocks is evident in the Vanguard Mega Cap ETF’s (MGC) 18.5% loss year-to-date.
Clorox Company (CLX)
CLX, a leading multinational manufacturer and marketer with about 9,000 employees worldwide, manufactures and markets consumer and professional products. The Oakland, Calif-based company operates through four segments: Health and Wellness; Household; Lifestyle; and International. Its market capitalization is $19.06 billion.
CLX’s net sales increased 1.6% year-over-year to $1.81 billion for the third quarter, ended March 31, 2022. However, its gross profit declined 16.1% year-over-year to $649 million. Its cash and cash equivalents came in at $241 million for the period ended March 31, 2022, compared to $492 million for the period ended March 31, 2021. Also, its total current assets were $1.87 billion, compared to $1.96 billion, for the same period.
In terms of forward EV/S, CLX’s 3.14x is 70.8% higher than the 1.84x industry average. Furthermore, its 2.68x forward P/S is 137.2% higher than the 1.13x industry average.
Analysts expect CLX’s revenue to decrease 2.3% to $7.17 billion in its fiscal 2022. Its EPS is estimated to decline 42.8% to $4.15 in 2022. It missed consensus EPS estimates in two of the trailing four quarters. The stock has declined 6.7%in price over the past six months to close yesterday’s trading session at $154.86. Wall Street analysts expect the stock to hit $135.70 in the near term, which indicates a potential decline of 12.4%.
CLX’s POWR Ratings reflect its poor prospects. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
It has a D grade for Sentiment. Click here to access the additional POWR Ratings for CLX (Value, Momentum, Growth, Stability, and Quality). It is ranked #33 of 61 stocks in the D-rated Consumer Goods industry.
Consolidated Edison, Inc. (ED)
New York City-based ED and its subsidiaries engage in the regulated electric, gas, and steam delivery businesses in the United States. The company owns, operates, and develops renewable and energy infrastructure projects, and provides energy-related products and services to wholesale and retail customers. Its market capitalization is $33.40 billion.
ED’s total operating revenues increased 10.4% year-over-year to $4.06 billion for the first quarter, ended March 31, 2022. However, ED’s operating income decreased 7.1% year-over-year to $799 million. Furthermore, its cash and temporary cash investments came in at $108 million for the period ended March 31, 2022, compared to $992 million for the period ended Dec. 31, 2021. Its total current assets came in at $5.46 billion, compared to $5.55 billion also for the same period.
In terms of forward non-GAAP P/E, ED’s 20.62x is 5% higher than the 19.65x industry average.
The stock missed EPS estimates in three of the trailing four quarters. Over the past month, the stock has declined 2.4% to close yesterday’s trading session at $94.28. Wall Street analysts expect the stock to hit $87.91 in price in the near term, which indicates a potential decline of 6.8%.
ED’s POWR Ratings reflect its poor prospects. The stock has a D grade for Sentiment.
Telefónica, S.A. (TEF)
Headquartered in Madrid, Spain, TEF and its subsidiaries provide telecommunications services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value-added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Its market capitalization is $27.66 billion.
On May 1, 2022, TEF announced its plan to increase investments in Israel’s high-tech sector in 2022. However, the company might not achieve immediate…
Continue reading at STOCKNEWS.com