Whether we like it or not, we are still looking at the possibility of a recession. Despite lower inflation and a strong first half for stocks, there are concerns about inflation winning out against the Fed…
But! There’s good news. The Street’s brightest analysts see plenty of high-quality stocks to be had, particularly ones that performed well in the first half of 2023.
Attractively valued stocks with solid balance sheets and earnings growth will pay off long-term. Simple. These incredibly timely stocks can both eliminate risks to your portfolio and build wealth…
FMC Corp (FMC)
There have been recent notable successes for FMC Corp. (FMC), such as a significant 28% growth in North American revenue, including exceptional growth of over 100% in Canada sales. Considering the long-term perspective, FMC is positioned to benefit from the steady increase in emerging market food consumption. Additionally, FMC’s new biological products are expected to gain market share, and the development of pipeline products can help mitigate the impact of patent expirations. With rising demand for crop chemicals and FMC’s strategic initiatives, the stock presents a compelling opportunity.
FMC is currently down by 22.88% year-to-date yet carries a volatility-safe beta score of 0.76. Trading near the bottom of its existing 52-week range, FMC has a PEG (price/earnings/growth) ratio of 0.64x and a P/S (price to sales) ratio of 2.08x, with a positive ROE and trailing twelve-month asset growth of 7.59%. FMC has an annual dividend yield of 2.14%, with a quarterly payout of 58 cents ($2.32/year) per share. FMC is projected to report $1 billion in sales at $0.76 per share for the current fiscal quarter. FMC recently beat analysts’ EPS estimates, reporting $1.77 per share vs. $1.75 as expected. With a 10-day average volume of roughly 2 million shares, FMC has an average price target of $121, with a high of $142 and a low of $101; this suggests a potential price upside of 47.5%. FMC has 15 buy ratings and four hold ratings.
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Alphabet Inc (GOOGL)
Alphabet (GOOGL), the parent company of Google and YouTube, leads the online search market and excels in online advertising and AI innovation. GOOGL also operates a substantial cloud services business. Recent success with the Bard AI chatbot has boosted GOOGL’s stock, highlighting the immense potential of AI for long-term growth. Furthermore, its core businesses yielded a remarkable $59.9 billion in profits in 2022. With dominance in online advertising and internet search, both promising sectors, GOOGL is well-positioned. The company’s focus on AI and self-driving vehicles also presents significant future growth opportunities.
GOOGL is up year-to-date by 41.09%, has a positive SMA (simple moving average), and has a PEG ratio of 1.48x. With a positive ROE and positive asset growth of 3.47%, GOOGL carries a free cash flow of almost $60 billion. GOOGL is projected to report $72.8 billion in sales at $1.34 per share for the current fiscal quarter; at its last earnings call, it beat analysts’ EPS forecasts, reporting $1.17 per share as opposed to the $1.07 per share expected. With a 10-day average volume of 25.8 million shares, GOOGL has a median price target of $130, with a high of $190.32 and a low of $115; this allows room for a leap of 53% from where pricing currently rests. GOOGL has 43 buy ratings and eight hold ratings.
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Solaredge Technologies Inc (SEDG)
SolarEdge Technologies (SEDG) is a leading solar power technology company recognized for its direct current inverter systems used in solar panel installations. With a strong market presence, SEDG effectively reduces greenhouse gas emissions by 31 million metric tons annually. In the first quarter, SEDG reported record-breaking revenue of $943.9 million, reflecting a 44% increase compared to last year. As renewable energy gains traction as a long-term investment theme, SEDG’s profitability and market leadership in the solar power industry make it an attractive choice. The global push for climate change mitigation through policy measures offers potential demand and financial incentives for solar installations. At the same time, the SEDG’s expansion into energy storage and e-mobility will broaden its horizons.
SEDG’s stock is in an exciting spot. Its stock is down year-to-date by 4.97% and is trading around the middle of its 52-week range. SEDG boasts a positive ROE, a PEG ratio of 0.93x, and a positive trailing twelve-month asset growth of 22.09%. With an operating free cash flow of $202 million, SEDG is predicted to report $991.9 million in sales for the current quarter with an EPS of $2.51 per share. At its last earnings call, SEDG beat analysts’ estimates on both EPS and revenue, most notably reporting EPS of $2.90 per share vs. $1.95 per share as expected by analysts, a +48.90% difference. SEDG also shows year-over-year growth in critical areas such as revenue (+44.09), net income (+317.77%), EPS (+291.67%), and net profit margin (+189.72%). With a 10-day average volume of roughly 960 thousand shares, SEDG’s average price target is $377.50, with a high of $445 and a low of $103.95; this represents the chance for a price upside of over 65% from where it currently sits. SEDG has 27 buy ratings and seven hold ratings.
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