- Bristol-Myers Squibb (BMY) — The drug maker’s deeper pipeline will enrich 2022 revenues
- Garmin (GRMN) — New product launches should reverse a recent stock downtrend
- Intel (INTC) – Aggressive chip fabrications investments will reward investors
- Coca-Cola (KO)– Margin expansion is fueling investor interest in the perennial favorite
- Netflix (NFLX)- Mobile game offerings are diversifying its revenue streams
- Skyworks (SWKS) — Demand for broad connectivity solutions boost growth
- The Trade Desk’s (TTD) — Ad market growth lifts revenues
Investors who missed the recent stock market rally or the bull market that unfolded for many years are not too late. April is a new month and with it, readers may look for seven no-brainer stocks to buy. Using a stock screener like Stock Rover is the best way to start. I will demonstrate in the table below how to pick stocks that have strong quality, growth, and/or value. After filtering for stocks with strong quantitative characteristics, evaluate reasons why the company’s unlocked catalysts outweigh the potential risks. Pick under-valued, high-quality companies that outweigh near-term uncertainties.
In the search, the companies that turn up represent a range of sectors. In the technology sector, two semiconductor companies represent great value. In the consumer discretionary sector, the company’s strong brand name will justify buying the stock. And in the streaming space, the stock’s plunge after posting quarterly results creates a deep value opportunity.
|Ticker||Company||Last Price||Quality Score||Value Score||Growth Score|
|TTD||The Trade Desk||$72.33||94||60||97|
In the quant score table above, Intel and Skyworks Solutions have the highest value scores. They are out of favor because investors worry about their growth potential ahead. Netflix, Zoom Video, and Trade Desk have the highest growth score. Those companies should grow faster than the market expects. Investors who buy those stocks now will benefit if those firms post profits that exceed consensus estimates.
No-Brainer Stocks to Buy: Bristol-Myers Squibb (BMY)
Investors are appreciating the pipeline growth at Bristol-Myers Squibb (NYSE:BMY). The company got good news last month when the U.S. Food and Drug Administration approved the first combination drug to treat metastatic melanoma. Opdualag is a fixed-dose combination of nivolumab and retalimab. In a clinical trial, Bristol-Myers said that progression-free survival (PFS) more than doubled the median PFS.
The drug “introduces an entirely new combination of two immunotherapies that may act together to help improve anti-tumor response by targeting two different immune checkpoints,” according to Stephen Hodi, M.D., director of the Melanoma Center and the Center for Immuno-Oncology at Dana-Farber Cancer Institute.
In February, Bristol Myers announced a positive opinion recommending Opdivo as adjuvant treating adults with muscle-invasive urothelial carcinoma with tumor cell PD-L1 expression.
The drug maker ended 2021 on a strong note. In the fourth quarter, it reported revenue of $12 billion. The gross margin increased from 73.7% to 80.3%, due mostly to an impairment charge. Still, investors should expect a gross margin of 80% or higher in future quarters. Marketing and selling expenses declined. It fell by 13% to $2.4 billion. The company’s accelerated investments in 2020 are now paying off for BMY stock investors.
Garmin’s (NYSE:GRMN) stock downtrend is showing signs of ending. In the fourth quarter, the company reported revenue growing by 3% year on year to $1.39 billion. Gross margins of 55.5% are healthy. It may expand after Garmin introduced the Garmin Descent Mk2i dive computer, won an award for Garmin Surround View Camera System, and introduced a new Garmin DriveSmart portable car navigator.
Investors treat Garmin as a GPS supplier for the wearable and automotive markets. Those are strong segments. Garmin is quietly reversing the margin erosion. New OEM products in the auto market will lift results. Revenue will expand as suppliers work through constraints.
In 2022, Garmin expects revenue to grow by almost 10% YoY to $5.5 billion. It will earn $5.90 a share. The company guided a gross margin of 57.5%. If Garmin launches an effective advertising campaign, shareholders should expect stronger demand for its new products. An earnings beat would send GRMN stock higher.
No-Brainer Stocks to Buy: Intel (INTC)
Punished for losing server market share to competitors, Intel (NASDAQ:INTC) is attractive for its strong dividend and deep value. More importantly, its aggressive investments in semiconductor fabrications across the U.S. and Europe will reward investors. Globalization is ending. The ongoing supply constraints for semiconductors are not easing. Intel is de-risking its supply chain with aggressive investments.
In the next decade, Intel will spend over EUR 33 billion ($36.5 billion) for research and development and manufacturing in the European Union. It wants leading-edge semiconductor fabs in German and France. CEO Pat Gelsinger said, “the EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector.”
The investment is a first step in the U.S. chip giant moving away from its dependency on China and Taiwan. Intel will also benefit from the bloc subsidizing those investments.
In the graphics card space, Intel will enter the discrete market by introducing GPUs for laptops. This quarter, the industry expects Intel will start selling GPUs for the PC market. GPU prices are almost double the manufacturer’s suggested retail price. Intel may benefit from the supply shortage by entering this space for the first time.
INTC stock’s Quality Score of 96 and Value Score of 90 cements its “no-brainer” status right now.
Coca-Cola (NYSE:KO) is more than a seller of pop drinks. Its core business is so healthy that the company announced its 60th consecutive annual dividend increase on Feb. 17, 2022. It raised its dividend from 42 cents to 44 cents a share.
The company has transformed its business. This resulted in quarterly revenue growing by 10% to $9.5 billion. Revenue benefited from a 10% growth in price/mix, offsetting a 1% decline in concentrate sales. In the quarter and for the full year of 2021, Coca-Cola’s total nonalcoholic ready-to-drink (NARTD) beverage market share grew. This contributed to a cash flow from operations increase of $2.8 billion, to $12.6 billion.
During the quarter, Coke acquired the remaining 85% ownership interest in BODYARMOR. The sports performance and hydration beverages market will complement its core business. To realize higher marketing efficiency, the company named ad giant WPP (NYSE:WPP) as its global marketing network partner. It will rely on WPP to execute its new marketing model. Investors should expect the advertiser to drive Coca-Cola’s long-term global growth.
Analysts have an average price target of $67.40 on KO stock.
No-Brainer Stocks to Buy: Netflix (NFLX)
Investors over-reacted to Netflix’s (NASDAQ:NFLX) weak fourth-quarter report and subscription figures. The company earned $1.33 a share and revenue of $7.71 billion in the fourth quarter. It added 8.28 million net subscribers, barely missing its target of 8.5 million expectations.
In the current quarter, it forecast net subscriber additions of 2.5 million. Since it will still have 224.3 million subscribers in total, Netflix has plenty of opportunities to rejuvenate its growth. For example, it will build on its biggest-ever hit series, Squid Game. The unexpected South Korean drama will get a second season. Netflix will also debut over 20 new shows in the country as well.
In addition to dominating the streaming video market, the company is entering the mobile game market. It has three game launches schedule for this month that will propel NFLX stock higher. Into the Dead 2 is a zombie game. This is a True Story is a narrative puzzle. Shatter Remastered is an updated game of a PlayStation 3 game, Shatter, launched in 2009.
Skyworks Solutions (SWKS)
Skyworks Solutions (NASDAQ:SWKS) reported flat revenue growth in its first fiscal quarter. Based on new product ramps across its diversified portfolio, the company expects revenue will grow in the double-digit percentage year-on-year.
In the last quarter, Skyworks posted revenue of $1.51 billion. It earned $2.40 per diluted share. The business thrived from growth in its mobile and broad markets portfolios. Investors should expect SWKS stock to recover as demand for connectivity accelerates. The industry is expanding its need for multiple essential wireless protocols. Strong adoption for 5G, advanced Wi-Fi, and precision GPS are catalysts.
Skyworks will realize delayed product delivery from the December quarter in the current period. Looking ahead to June, investors should expect the company’s design wins and product releases to lift bookings. By later this year, performance will accelerate as growth recovers.
The Android operating system is a potential growth area for Skyworks. The company needs to construct 5G solutions that increase performance for high-end Android devices. For example, Samsung is a strong customer. When Skyworks wins more business from Oppo, Xiaomi, and Vivo, investors will recognize its long-term growth potential.
No-Brainer Stocks to Buy: The Trade Desk (TTD)
In the connected television advertising market, Trade Desk (NASDAQ:TTD) might benefit from a digital-advertising tie-up with Netflix. Netflix may eventually offer a lower-priced ad-supported subscription. If it happens, The Trade Desk’s advertising revenue potential would soar.
In the fourth quarter, the company posted revenue of $395.6 million, up 24% YoY. It earned two cents a share. The company retained over 95% of its customers. With high customer satisfaction levels, The Trade Desk may sell more product solutions. It launched Solimar, a new media trading platform, last July 2021. The solution will help marketers optimize their digital advertising campaigns.
The Trade Desk established a partnership with Walmart (NYSE:WMT) in 2021. It forged new partnerships last year with companies including Publicis, Xandr, Throttle and iCook. With those partners, TTD will benefit from strong adoption and support for Unified ID 2.0, identity preservation that values user control and privacy.
Few advertising firms get better data-driven decisions than that offered by The Trade Desk. The company is facilitating the setup and helping its customer in their data-driven decision process. Customers will realize a high return from artificial intelligence and machine learning with Koa.
On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.