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4 Stocks You'll Regret Not Buying at Their Current Price Levels
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2022 has so far proved to be highly volatile for the U.S. stock market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 7.04%, 29.1% and 16.8%, respectively. The global economy has been going through a massive slowdown due to the macroeconomic and geopolitical environment.
The primary concern of the U.S. economy is soaring inflation, which is currently at its 40-year high. In order to combat mounting inflation, the Fed has already hiked interest rate sharply by 3.75% year to date. The Fed has further vowed to hike interest rates to drag down inflation to its target of 2% at best by 2025. This has turned the market jittery.
Nevertheless, the situation is likely to improve in the near term, which is evident from Fed Chair Jerome Powell’s recent short-term message stating that the Fed is about to slow down the pace of interest rate hikes in the upcoming meeting. It is expected that Fed would spike the interest rates by 50 basis points this time instead of 75 basis points.
In the current scenario (highly volatile market situation), one should look for stocks that are undervalued but have bright growth prospects. Undervalued stocks cushion investors from market jitters, while companies’ robust fundamentals ensure solid portfolio returns.
At this stage, investors may consider adding stocks such as Commercial Metals Co. (CMC - Free Report) , Dillard's Inc. (DDS - Free Report) , W.R. Berkley (WRB - Free Report) and BOK Financial (BOKF - Free Report) to their portfolio to shrug off the impacts of the current highly volatile market environment and make some gains from their upside potential.
Our Top Picks
In order to help investors identify the ideal investment choices, we have used the Zacks Stock Screener.
We have narrowed our search to the aforesaid four stocks that have seen solid earnings estimate revisions for 2022 in the past 30 days and have a Value Score of A or B, reflecting analysts’ confidence in the companies’ operational efficiency. Value Score identifies stocks that are undervalued. These value stocks have a long history of showing superior returns.
The chart below shows the price performance of our four picks year to date.
Year-to-Date Performance
Image Source: Zacks Investment Research
Dillard's Inc. is a large departmental store chain featuring fashion apparel and home furnishings. As of Oct 29, 2022, Dillard’s operated 249 full-line Dillard’s stores and 29 clearance stores in 29 states and on dillards.com. The company has been benefiting from strong consumer demand, effective inventory management and cost-containment measures. During third-quarter fiscal 2022, total retail sales increased 3%, while earnings per share improved 11.7% from the year-ago period. Cosmetics, men’s apparel and accessories, home and furniture and shoes were the robust performing categories.
DDS is currently trading at $352.3 and has a Value Score of A. The Zacks Consensus Estimate for Dillard's current financial year EPS suggests growth of 3.4% from the year-ago period to $41.39 per share.
Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022.
CMC is currently trading at $49.7 and has a Value Score of B. The Zacks Consensus Estimate for Commercial Metals' current financial year EPS suggests growth of 8.73% from the year-ago period to $6.85 per share.
W.R. Berkley Corp. is a Fortune 500 company. It is one of the nation’s largest commercial lines property casualty insurance providers, performing well on the increase in premium written over the past many years. The company has been investing in numerous startups since 2006 and establishing new units in growing international markets. Its international business is poised for growth supported by emerging markets. Investment in alternative assets should help improve investment income.
W.R Berkley is currently trading at $74.4 and has a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has improved 0.06% over the past 30 days to 91 cents per share.
BOK Financial Corporation is a regional financial services company. The company’s steady capital-deployment activities are backed by a solid balance-sheet position. The company witnessed loan increase at a compound annual growth rate (CAGR) of 4.2% in the last five years (2017-2021). Deposits also escalated, recording a five-year CAGR of 16.9% in 2021. Given a diverse business model and an increase in loans to individuals, the company is well-poised for organic growth. BOK Financial’s net interest revenues and the yield on interest-earning assets are expected to witness robust growth, given the favorable higher interest rate environment.
BOKF is currently trading at $103.4 and has a Value Score of B. The Zacks Consensus Estimate for 2022 earnings has moved north by 4.5% over the past 30 days to $7.56 per share.
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4 Stocks You'll Regret Not Buying at Their Current Price Levels
2022 has so far proved to be highly volatile for the U.S. stock market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 7.04%, 29.1% and 16.8%, respectively. The global economy has been going through a massive slowdown due to the macroeconomic and geopolitical environment.
The primary concern of the U.S. economy is soaring inflation, which is currently at its 40-year high. In order to combat mounting inflation, the Fed has already hiked interest rate sharply by 3.75% year to date. The Fed has further vowed to hike interest rates to drag down inflation to its target of 2% at best by 2025. This has turned the market jittery.
Nevertheless, the situation is likely to improve in the near term, which is evident from Fed Chair Jerome Powell’s recent short-term message stating that the Fed is about to slow down the pace of interest rate hikes in the upcoming meeting. It is expected that Fed would spike the interest rates by 50 basis points this time instead of 75 basis points.
In the current scenario (highly volatile market situation), one should look for stocks that are undervalued but have bright growth prospects. Undervalued stocks cushion investors from market jitters, while companies’ robust fundamentals ensure solid portfolio returns.
At this stage, investors may consider adding stocks such as Commercial Metals Co. (CMC - Free Report) , Dillard's Inc. (DDS - Free Report) , W.R. Berkley (WRB - Free Report) and BOK Financial (BOKF - Free Report) to their portfolio to shrug off the impacts of the current highly volatile market environment and make some gains from their upside potential.
Our Top Picks
In order to help investors identify the ideal investment choices, we have used the Zacks Stock Screener.
We have narrowed our search to the aforesaid four stocks that have seen solid earnings estimate revisions for 2022 in the past 30 days and have a Value Score of A or B, reflecting analysts’ confidence in the companies’ operational efficiency. Value Score identifies stocks that are undervalued. These value stocks have a long history of showing superior returns.
Finally, each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our four picks year to date.
Year-to-Date Performance
Image Source: Zacks Investment Research
Dillard's Inc. is a large departmental store chain featuring fashion apparel and home furnishings. As of Oct 29, 2022, Dillard’s operated 249 full-line Dillard’s stores and 29 clearance stores in 29 states and on dillards.com. The company has been benefiting from strong consumer demand, effective inventory management and cost-containment measures. During third-quarter fiscal 2022, total retail sales increased 3%, while earnings per share improved 11.7% from the year-ago period. Cosmetics, men’s apparel and accessories, home and furniture and shoes were the robust performing categories.
DDS is currently trading at $352.3 and has a Value Score of A. The Zacks Consensus Estimate for Dillard's current financial year EPS suggests growth of 3.4% from the year-ago period to $41.39 per share.
Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022.
CMC is currently trading at $49.7 and has a Value Score of B. The Zacks Consensus Estimate for Commercial Metals' current financial year EPS suggests growth of 8.73% from the year-ago period to $6.85 per share.
W.R. Berkley Corp. is a Fortune 500 company. It is one of the nation’s largest commercial lines property casualty insurance providers, performing well on the increase in premium written over the past many years. The company has been investing in numerous startups since 2006 and establishing new units in growing international markets. Its international business is poised for growth supported by emerging markets. Investment in alternative assets should help improve investment income.
W.R Berkley is currently trading at $74.4 and has a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has improved 0.06% over the past 30 days to 91 cents per share.
BOK Financial Corporation is a regional financial services company. The company’s steady capital-deployment activities are backed by a solid balance-sheet position. The company witnessed loan increase at a compound annual growth rate (CAGR) of 4.2% in the last five years (2017-2021). Deposits also escalated, recording a five-year CAGR of 16.9% in 2021. Given a diverse business model and an increase in loans to individuals, the company is well-poised for organic growth. BOK Financial’s net interest revenues and the yield on interest-earning assets are expected to witness robust growth, given the favorable higher interest rate environment.
BOKF is currently trading at $103.4 and has a Value Score of B. The Zacks Consensus Estimate for 2022 earnings has moved north by 4.5% over the past 30 days to $7.56 per share.