Market turbulence has undoubtedly been a significant pain for investors so far in 2022. The market is currently exposed to a number of dangers, including inflation, increasing interest rates, and a potential recession. Losses are being experienced in both stocks and bonds.
Certain stocks do, in fact, have sizable competitive advantages, which many analysts believe will remain steady or increase. It seems that the greatest businesses to focus on have stable cash flows and are led by management groups with a track record of wise financial choices. The upside is that these stocks are undervalued. Buying them now and watching them grow certainly beats the alternative. Optimistic investors look at the market’s poor condition and see opportunities. This is certainly an example. There are very high-quality stocks in the marketplace that, right now, come with tremendous bargains. As always, after some time and care, I’ve settled on three personal favorites.
Join me while I quickly break down three stocks from various areas of the market that are currently undervalued and are considered by analysts to be wise, forward-looking investments:
Comcast Corp (CMCSA)
Comcast Corp (CMCSA) is a worldwide telecommunications firm based in Philadelphia, PA. CMCSA is the largest cable TV business, the largest home Internet service provider, and the third-largest home telephone service provider in the U.S. CMCSA serves clients in 40 states in the U.S. CMCSA, which has been the parent corporation of the multinational media firm NBCUniversal since 2011, is a producer of feature films for theatrical release as well as over-the-air and cable television programs. CMCSA also owns and operates Xfinity Mobile, over-the-air national broadcast network channels, multiple cable-only channels, Universal Pictures, and Peacock, an on-demand streaming service.
CMCSA comes with that favorite distinction of mine: It has successfully exceeded Wall Street’s earnings forecasts for the past four consecutive quarters. CMCSA most recently beat EPS by 6.73% and revenue by 1.98%. Year-over-year, CMCSA shows healthy revenue growth of 13.99%, net income growth of 6.61%, and EPS of 9.86%. It currently boasts $29.8 billion in sales, at an EPS of 91 cents per share. CMCSA now has a dividend yield of 2.70%, with a quarterly payout of 27 cents per share. The median 12-month price target for CMCSA from the analysts providing 12-month predictions is 53.00, with a high estimate of 70.00 and a low of 40.00. The consensus estimate is a 32.77% increase over the last price, and the analysts support CMCSA’s in-spite-of-the-pandemic style success with a buy rating.
Anheuser-Busch (BUD)
Anheuser-Busch (BUD), sometimes referred to as AB InBev, is a Belgian-Brazilian multinational beverage and brewing corporation headquartered in Leuven, Belgium, and So Paulo, Brazil. BUD maintains a worldwide functional management office in New York City and regional offices in So Paulo, London, St. Louis, Mexico City, Bremen, and Johannesburg. Among 150 countries, BUD owns around 630 beer brands. InBev acquired Anheuser-Busch from the U.S., resulting in the formation of what is now BUD. However, even before the acquisition, it was the world’s largest brewer, and it is now one of the world’s largest fast-moving consumer products corporations.
BUD, until reporting quarterly earnings again, shows $14.7 billion in revenue, with an EPS of $1.31. Year-over-year, BUD currently shows revenue growth of 7.66%. BUD has a solid earnings history, beating analysts’ EPS and revenue projections for the last report by 11.99% and 0.24%, respectively. The quarter prior showed BUD beating EPS by 9.12% and revenue by 3.88%. Growth is forecasted for BUD on both an annual and quarterly basis. BUD has a current dividend yield of 2.07%, with a quarterly payout of 28 cents per share. The median price goal for BUD from the analysts providing 12-month price projections is 65.00, with a high of 80.00 and a low of 52.50. The consensus reflects a 19.20% gain over recent pricing, and BUD’s buy rating is well-earned.
Taiwan Semiconductor Manufacturing Co Ltd (TSM)
Taiwan Semiconductor Manufacturing Co Ltd (TSM) is a global Taiwanese semiconductor contract manufacturing and design business. With its headquarters and primary activities situated in the Hsinchu Science Park in Hsinchu, TSM is one of Taiwan’s largest firms, the largest independent semiconductor foundry, and it has been recognized as one of the most valuable and successful chip makers in the world. TSM is considered the first specialized semiconductor foundry and was founded by Morris Chang in Taiwan in 1987. TSM has long been highly regarded in its industry. TSM was also notably the first Taiwanese business to list on the New York Stock Exchange in 1997.
TSM reports earnings again soon, but for now, it shows an EPS of $1.43, with $17.7 billion in sales. Despite its mixed earnings history, TSM has performed when and where it counts the most and continues to impress Wall Street after decades of innovation. One noteworthy earnings moment came for TSM in Q4 2021, when it beat EPS projections by a whopping 472.44%. Year-over-year, TSM shows positive growth in crucial areas: revenue growth of 35.5%, net income growth of 45.13%, EPS growth of 45.08%, and net profit margin growth of 7.11%. TSM currently has a dividend yield of 2.36%, with a quarterly shareholder payout of 48 cents per share. TSM has a median 12-month price goal of 120.00, with a high of 146.00 and a low of 100.00. The consensus estimate reflects a 48.81% gain from current pricing, and despite market pressures, TSM comes with a buy rating that is almost uncontested.
