Today’s article discusses seven stocks on the move. The summer rally on Wall Street has started losing momentum. Following comments from Fed Chair Jerome Powell on Aug 26, the major indices turned red, with the S&P 500 index losing over 3.3% for the day.
On the other hand, as the market continues to slump, more stocks are entering the bargain bin, including many with solid fundamentals. The equities in the latter category that also have good prospects and strong management teams offer excellent opportunities for investors.
That said, here are seven of the best stocks on the verge of climbing. We have chosen them partially because of their price declines so far in 2022 and partly because of their longer-term potential.
|EXR||Extra Space Storage||$207.13|
|WPM||Wheaton Precious Metals||$31.66|
Agilent Technologies (A)
Life sciences firm Agilent Technologies (NYSE:A) provides laboratories worldwide with instruments, services, consumables, applications, and expertise. The company released its fiscal Q3 results on Aug. 16.
Its revenue came in at $1.72 billion, up 8% year-over-year (YOY). The firm’s earnings per share, excluding some items, rose 22% year -over-year to $1.34. Agilent ended the quarter with cash and equivalents of $1.1 billion, while its long-term debt stood at $2.7 billion.
Driven by the ongoing growth of its pharma business and solid momentum in the chemical market, management raised the firm’s full-year sales and earnings guidance.
Recently, Agilent announced the acquisition of Polymer Standards Service GmbH, which offers solutions for polymer characterization. With this transaction, the science giant has expanded its product offerings, particularly for the chemical and biopharmaceutical industries.
Agilent stock has dropped 18.5% year-in 2022, and the shares have a price-earnings ratio of 30. Analysts’ average 12-month price forecast for Agilent stands at $149. In other words, long-term investors could expect to see a return of about 15%.
Brighthouse Financial (BHF)
Next up on our list of stocks on the move is Brighthouse Financial (NASDAQ:BHF), one of the largest providers of annuities and life insurance in the U.S. The company operates through three segments: run-off, annuities, and life.
The insurance giant reported its Q2 results on Aug. 4. The firm’s operating revenues dropped 11% YOY to $2.1 billion, mainly due to lower net investment income, along with reduced universal life and investment-oriented product policy fees. Its adjusted EPS was $3.29 per share compared to $5.32 during the same period a year earlier. It ended the quarter with cash and equivalents of $5.1 billion.
On Aug. 8, BHF announced the expansion of its Brighthouse Shield Level Annuities suite with the launch of Brighthouse Shield Level Pay Plus Annuities. The new product is designed to provide lifetime income, which is essential in retirement planning.
Recent research from S&P Global (NYSE:SPGI) suggests “Rising rates provide a tailwind” for the “US Life Insurance and Annuity Market.” Therefore, long-term investors who expect interest rates to rise further may want to conduct due diligence on Brighthouse Financial.
BHF stock has fallen nearly 7% since January, and hit a 52-week low on July 14. Its forward price-earnings (P/E) and price–sales (P/S) ratios stand at 4.36 times and 0.39 times, respectively, both of which are very low, indicating that the shares can rise quickly in the near-term.
CVS Health (CVS)
CVS Health (NYSE:CVS) operates via local stores and digital channels. In 2021, the company had the highest market share in the U.S. prescription drug sector.
The healthcare firm announced its Q2 financial results on Aug. 3. Its revenue climbed 11% YOY to $80.6 billion,, but its EPS inched down 2 cents YOY to $2.40. It did, however, generate cash flow from operations of $9 billion.
Meanwhile, management raised CVS’ full-year 2022 earnings and cash flow guidance and highlighted the healthcare firm’s historic resilience during volatile market conditions.
CVS stock is down about 3% since the beginning of the year and has a dividend yield of 2.15%. In light of these numbers, CVS is a stable cash generator that is poised to perform well during the market’s current volatility.
The shares are trading at 12 times analysts’ mean forward earnings estimate and 0.45 times CVS’ trailing sales. Meanwhile, analysts’ median 12-month price forecast for CVS stands at $120, up about 20% from its closing price on Aug. 26.
Extra Space Storage (EXR)
Its same-store revenues increased 21.7% YOY to $362 million. EXR’s EPS was $1.73, compared to $1.25 during the same period a year earlier. Meanwhile, its funds from operations (FFO) per share grew 30% YOY to $2.12. As a result, management increased its annual FFO guidance for the second time this year.
According to recent industry statistics, “self-storage has grown to more than 1.6 billion square feet of space in 2022.” Around one-third of Americans use or are considering using self-storage.
EXR is down about 8% in 2022. It has a dividend yield of 2.87%. Like CVS stock, the shares of Extra Space Storage are also likely to appeal to dividend investors in the coming months.
The firm’s forward P/E and P/S ratios stand at 35.3 times and 17 times, respectively. Finally, analysts’ average 12-month price target for EXR stock is $220.
KSS reported its Q2 financial results on Aug. 18.. Its total revenue came in at $4.1 billion, down 8% YOY. Kohl’s reported adjusted net income of $143 million, or $1.11 per share, compared to $2.48 per share during the same period a year earlier.
The retailer cut its full-year guidance mainly due to margin pressure caused by the current economic backdrop and tough competition. Although investors were not impressed with the results from Kohl’s, the metrics were not very surprising,.
KSS shares have fallen over 39% since the beginning of the year. Its currently has a dividend yield of 6.7%.
I believe that the stock’s juicy yield and favorable valuation metrics make KSS stock a long-term buy.
Our next stock on the move is the Singapore-based tech firm Sea (NYSE:SE). It has three main businesses: Its digital entertainment unit Garena, its e-commerce arm, Shopee, and its digital payments and financial services division, SeaMoney.
Sea reported its Q2 earnings on Aug. 16. The firm’s total revenue jumped 29% YOY to $2.9 billion. However, its net loss jumped to $931.2 million or $1.03 per share, up from 61 cents per share in Q2 of 2021.
The strong growth of internet use, e-gaming and digital finance in the Asia-Pacific region will likely provide positive catalysts for Sea. For instance, in 2021, the proportion of “consumers in Asia actively using digital banking…jumped to 88%…”
SE stock has plummeted close to 70% in 2022. The shares are changing hands at 6.95 times the firm’s trailing book value and 3.79 times its sales. Currently, analysts’ 12-month median price forecast for SE stands at $110, over 70% above the shares’ current levels.
Wheaton Precious Metals (WPM)
Canada-based Wheaton Precious Metals (NYSE:WPM) is a miner of precious metals. It operates 23 mines and 13 development-stage projects.
On Aug. 11, the gold and silver streaming specialist posted its Q2 financial results. Its revenue fell 8.3% YOY to $303 million. The company’s adjusted net earnings came in at $149.3 million, or 33 cents per share, compared to 36 cents in the same quarter a year earlier.
Given the termination of two of its mines nd weather-related production disruptions, Wheaton lowered its 2022 production guidance
The prices of both gold and silver have come under pressure in recent months. For instance, gold has lost about 8% of its value and silver is down 22%. As a result, miners like Wheaton Precious Metals have also seen their share prices fall. Yet precious metals may very well shine in the final stretch of 2022, lifting WPM stock in the process.
On the date of publication, Tezcan Gecgil 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.