Major stock indexes fell on fears of aggressive interest rate hikes by the Fed to control decades-high inflation and a looming recession. This market correction resulted in a significant loss in the shares of many economically vital companies. Shell (SHEL), Cheniere Energy (LNG), QUALCOMM (QCOM), AT&T (T) and Taiwan Semiconductor (TSM) are five such stocks that could see a big rebound when concerns dissipate. In our proprietary rating system, these stocks are always rated ‘Buy’ or ‘Strong Buy’. Continue reading….
The stock market has been under pressure due to various macroeconomic and geopolitical factors. Concerns over decades-long high inflation, the continuing Russia-Ukraine crisis, soaring energy and commodity prices, and ongoing supply chain disruptions are prompting investors to pull back from equity. stock market money.
May’s consumer price index saw the largest increase in four decades, which should prompt further aggressive monetary tightening from the Federal Reserve. Investors feared the Fed’s aggressive interest rate hikes. Many analysts believe that a more aggressive rise in benchmark interest rates could tip the economy into a recession.
Shares of many leading companies in different sectors crucial to the functioning of the economy lost significantly due to the market correction. However, once concerns about economic issues ease, these fundamentally strong stocks should rebound strongly due to their strong fundamentals and growth prospects.
Shell plc (SHEL), Cheniere Energy, Inc. (LNG), QUALCOMM Incorporated (COMQ), AT&T Inc. (J) and Taiwan Semiconductor Manufacturing Company Limited (TSM) are five such stocks well positioned to see a big rebound from their current price levels. So these stocks could be solid additions to your portfolio. These stocks are rated “Strong Buy” or “Buy” in our own POWR Rankings system.
Shell plc (SHEL)
Based in London, UK, SHEL is an international energy and petrochemical company. The Company is engaged in the exploration, production, refining and marketing of petroleum and natural gas as well as the manufacture and marketing of chemicals. Its businesses include upstream, integrated gas, renewables and energy solutions, and downstream.
On March 31, 2022, SHEL announced that Shell Trinidad and Tobago had commenced production on Block 22 and NCMA-4 in the Trinidad and Tobago North Coast Marine Area.
Wael Sawan, Director of Integrated Gas, Renewables and Energy Solutions at SHEL, said, “Colibri, along with other development projects, will see natural gas enter both domestic petrochemical and export markets. of LNG, in line with Trinidad and Tobago’s energy ambitions. .”
SHEL’s revenue increased 51.2% year-on-year to $84.20 billion for the first quarter ended March 31, 2022. The company’s attributable income increased 25.7% year-on-year annual to reach 7.11 billion dollars. Also, his PES settled at $0.93, representing a 29.1% year-over-year increase.
Analysts expect SHEL’s EPS for the quarter ending September 30, 2022 to rise 122.6% year-over-year to $2.36. Its revenue for the quarter ending June 30, 2022 is expected to increase 87.5% year-over-year to $95.95 billion. It has exceeded Street EPS estimates in three of the past four quarters. Over the past month, the stock has lost 12.8% to close the last trading session at $50.83.
SHEL’s POWR ratings reflect a strong outlook. The company has an overall rating of B, which translates to a buy in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.
It has an A rating for Momentum and a B rating for Growth, Sentiment and Quality. It is ranked No. 7 out of 100 stocks in the B rating Energy – Oil & Gas industry. Click here to see SHEL’s other ratings for value and stability.
Cheniere Energy, Inc. (LNG)
LNG is an energy infrastructure company engaged in LNG-related activities. The company provides clean and secure LNG to integrated energy companies, utilities and energy trading companies around the world. The company owns and operates two natural gas liquefaction and export facilities at the Sabine Pass LNG and Corpus Christi LNG terminals.
On June 23, 2022, LNG announced that it had authorized the $8 billion expansion of its Corpus Christi plant and also signaled further expansions in the future. The expansion will allow it to increase its production of liquefied natural gas and meet growing demand.
For the fiscal first quarter ended March 31, 2022, LNG revenue increased 142% year-over-year to $7.48 billion. The company’s adjusted EBITDA increased 117% year over year to $3.15 billion. Additionally, its total current assets were $5.70 billion, compared to $5.05 billion for the year ended December 31, 2021.
For the quarter ending June 30, 2022, EPS and LNG revenue are expected to increase 354.6% and 94% year-over-year to $3.31 billion and $5.99 billion, respectively . Over the past month, the stock has lost 2.7% to close the last trading session at $126.84.
LNG’s strong fundamentals are reflected in its POWR ratings. The stock’s overall B rating translates to a buy in our proprietary rating system.
It has an A rating for Momentum. It is ranked #35 in the same industry. To view other LNG ratings for Growth, Value, Stability, Sentiment and Quality, Click here.
QUALCOMM Incorporated (COMQ)
QCOM wireless technology company provides technologies and products for mobile, wireless devices, automotive, computing, Internet of Things (IoT) and networking. It is also currently engaged in the development, launch and expansion of 5G technology.
On February 9, 2022, QCOM announced the opening of Extended Reality Labs in Europe. QCOM’s Vice President and General Manager of XR, Hugo Swart, said, “These labs will be key to growing our XR portfolio, which includes the best innovative technology platforms, software and features, and making it available to all developers helping to build the metaverse through Snapdragon Spaces.”
QCOM’s total revenue increased 40.7% year-over-year to $11.16 billion for the second quarter ended March 27, 2022. The company’s net income increased 66.5 % year over year to reach $2.93 billion. Additionally, its EPS came in at $2.57, representing a 67.9% year-over-year increase.
Analysts expect QCOM’s EPS for the quarter ending June 30, 2022 to rise 50% year-over-year to $2.88. The company’s fiscal 2022 revenue is expected to grow 33.4% year-over-year to $44.63 billion. It has exceeded consensus EPS estimates in each of the past four quarters. Over the past month, the stock has lost 7.1% to close the last trading session at $122.16.
QCOM’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has a B rating for growth, value and quality. It is ranked No. 10 out of 96 stocks in the B rating Semiconductor and wireless chip industry. Click here to see QCOM’s other ratings for Momentum, Stability, and Sentiment.
AT&T Inc. (J)
T provides telecommunications, media and technology services globally. The Company operates through three segments: Communication, WarnerMedia and Latin America.
For the fiscal first quarter ended March 31, 2022, T’s communications segment operating revenue increased 2.5% year-over-year to $28.87 billion. The company’s total operating expenses fell 10.5% year over year to $32.46 billion. Additionally, its total current assets were $76.85 billion, compared to $59.99 billion for the year ended December 31, 2021.
Over the past month, the stock has fallen 0.3% to close the last trading session at $20.32.
T’s POWR ratings reflect a strong outlook. The stock has an overall rating of B, which equates to a buy in our proprietary rating system.
Taiwan Semiconductor Manufacturing Company Limited (TSM)
Based in Taiwan, TSM is engaged in the manufacture and sale of integrated circuits and semiconductor products. Its products apply to personal computers, peripheral products, information applications, wired and wireless communication systems, industrial equipment, digital televisions and others.
TSM’s net revenue increased 35.5% year-on-year to NT$491.07 billion ($16.47 billion) for the first quarter ended March 31, 2022. company grew 45.1% year-on-year to NT$202.87 billion ($6.80 billion). . Additionally, its EPS was NT$7.82, representing a 45% year-on-year increase.
Analysts expect TSM’s EPS and revenue for the quarter ending June 30, 2022 to increase 58.1% and 36.2% year-over-year to 1.47 and 18, 10 billion dollars, respectively. It has exceeded Street EPS estimates in three of the past four quarters. Over the past month, the stock has lost 6.4% to close the last trading session at $84.91.
TSM’s POWR ratings reflect this promising outlook. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.
It has an A rating for quality and a B rating for growth, stability and sentiment. It is ranked #24 in the semiconductor and wireless chip industry. Click here to see TSM’s other ratings for Value and Momentum.
Shares of SHEL rose $0.42 (+0.83%) in premarket trading on Thursday. Year-to-date, SHEL is down -1.81%, compared to a -20.59% rise in the benchmark S&P 500 over the same period.
About the Author: Dipanjan Banchur
Ever since he was in elementary school, Dipanjan had been interested in the stock market. This enabled him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets.