The major stock market indexes retreated yesterday because consumer price data indicated higher-than-expected inflation. The Consumer Price Index rose 6.2% in October from a year earlier, its biggest jump in more than 30 years. However…
the major stock market indexes rallied at the beginning of the week.
Among the positive factors, Pfizer Inc. (PFE) announced on November 5 that its COVID-19 antiviral pill, when used with a widely used HIV drug, cut the risk of hospitalization or death from COVID-19 by 89% in high-risk adults who’ve been exposed to the virus. U.S. jobless claims declined to a 267,000 pandemic low. And, according to a Factset report, the S&P 500 reported the second-highest revenue growth in the third quarter since 2008. These factors have helped boost investor sentiment.
Given this backdrop, we think it could be wise to add fundamentally sound stocks Lufax Holding Ltd. (LU – Get Rating), Companhia Siderúrgica Nacional (SID – Get Rating), and Brinker International, Inc. (EAT – Get Rating) to one’s portfolio. They have declined by more than 20% in price year-to-date but are well-positioned to rebound in the coming months.
Lufax Holding Ltd. (LU – Get Rating)
Headquartered in Shanghai, China, LU is a technology-empowered personal financial services platform. It offers loan products that include unsecured and secured loans, and consumer finance loans. The company also provides wealth management platforms that include Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong).
On June 28, 2021, Lu International, a subsidiary of LU, established a strategic partnership with Schroders Singapore to address the fast-growing needs of retail investors in the region. The collaboration aims to revolutionize the digital investment landscape in the region, drawing on the robust capabilities of both powerhouses.
For the third quarter, ended September 30, 2021, LU’s total income increased 21.8% year-over-year to RMB15.92 billion ($2.49 billion). Its net profit increased 90.8% year-over-year to RMB4.12 billion ($643.53 million). And its net interest income increased 57.2% year-over-year to RMB3.80 billion ($594.59 million).
Analysts expect LU’s EPS for its fiscal year 2021 to increase 13.7% year-over-year to $1.08. For the quarter ending March 31, 2022, the company’s revenues are expected to be $2.73 billion, representing a 22.1% year-over-year rise. It has surpassed the Street’s EPS estimates in each of the trailing four quarters. The stock has lost 49.9% in price so far this year to close yesterday’s trading session at $7.12.
LU’s POWR Ratings reflect solid prospects. The company has an overall B rating, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
LU has an A grade for Sentiment, and a B grade for Value, Momentum, and Quality. Click here to see the additional ratings for LU (Growth and Stability). LU is ranked #1 of 12 stocks in the Foreign Consumer Finance industry.
Companhia Siderúrgica Nacional (SID – Get Rating)
Based in Sao Paulo, Brazil, integrated steel producer SID operates throughout the entire steel production chain, from iron ore mining to producing and selling a range of steel products, including coated galvanized flat steel and tinplate. The company is active in five sectors: steel, mining, logistics, cement, and energy.
SID announced in September 2021 that through CSN Cimentos SA it has agreed to acquire 100% of the shares issued by LafargeHolcim SA for$1.03 billion. This acquisition is expected to…
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