It looks like an excellent time to be searching for the best bull market stocks. Analysts are debating whether the multi-year lows recently seen in many shares could be the bottom before a bull market rally.
The drop in the S&P 500 index on June 13 confirmed a bear market for the first time since the beginning of the pandemic, ending almost 22% below its record high in early January. The S&P 500 and tech-heavy Nasdaq 100 index are currently down by around 17% and 24% year-to-date (YTD), respectively.
Meanwhile, savvy investors are building positions in the best bull market stocks at bargain valuations. The market selloff through the first half of the year has created attractive entry points in many shares. Stretchy valuations in growth stocks have come down fast.
The companies in our list may perhaps not yet be ready to take off in price. But these shares are primed to help set the pace for the next rally in the stock market. With that information, here are the seven best bull market stocks to buy at attractive valuations:
| BLK | BlackRock | $634.82 |
| CARR | Carrier Global | $37.76 |
| F | Ford Motor | $12.79 |
| FCX | Freeport-McMoRan | $28.32 |
| PYPL | PayPal | $82.25 |
| PVH | PVH Corp. | $61.73 |
| TRUP | Trupanion | $71.64 |
BlackRock (BLK)
BlackRock (NYSE:BLK) is the world’s largest asset manager, with about $9.6 trillion in assets under management (AUM). It is also the leader in the high-growth exchange-traded fund (ETF) segment of the market. In the U.S., its iShares funds currently boast around 34% market share.
The financial giant released Q1 results on April 13. Revenue advanced 7% for the quarter to $4.7 billion. Adjusted earnings came in at $9.52 per share, reflecting an increase of 18% from the prior-year quarter. Revenue, AUM and earnings declined sequentially in the first quarter, though.
Thanks to its wide range of fund offerings, BlackRock enjoyed net inflows of $86 billion in the first quarter. But that number was $172 billion in the prior-year period. Meanwhile, assets under management declined roughly 4% to $9.6 trillion from the previous quarter.
BlackRock pays out a $4.88 quarterly dividend and has boosted its annual dividend for almost two decades. The stock currently generates a dividend yield of 3.1%.
BLK shares are down 30% YTD. They are trading at 16.2 times forward earnings and 2.4 times book value. Wall Street’s 12-month median price forecast for BlackRock stock stands at $700.
Carrier Global (CARR)
Our next bull market stock is Carrier Global (NYSE:CARR), a leader in building and cold chain solutions. The company operates three business segments: HVAC (heat, ventilation, air conditioning), refrigeration and fire & security.
Carrier issued Q1 results on April 28. Revenue declined by 1% year-over-year (YOY) to $4.7 billion due to the Chubb division divestiture. Organic sales grew 10% during the quarter. Adjusted earnings per share (EPS) came in at 54 cents, up from 48 cents a year ago. Cash and equivalents ended the quarter at $3.6 billion.
Investors have been paying attention to how the company has digitally enhanced its HVAC systems to operate on cloud-based platforms. Management highlights the end result for customers is reduced costs, increased efficiency and decreased environmental impact.
Meanwhile, Carrier has collaborated with Amazon (NASDAQ:AMZN) Web Services (AWS) to develop its Lynx platform, which “will combine AWS’s IoT, analytics, and machine learning services with Carrier’s refrigeration and monitoring solutions.”
The company has doubled its Lynx subscriptions over the past year. Management expects the number exceed 1 million by 2026.
CARR stock is down 30% YTD. The current price supports a dividend yield of 1.6%. Shares are changing hands at 15.7 times forward earnings and 1.6 times sales. Meanwhile, the 12-month price forecast for CARR stock stands at $45.
Ford Motor (F)
Next up is Ford Motor (NYSE:F). The auto giant delivers Ford trucks, sport utility vehicles, commercial vans, cars, as well as Lincoln luxury vehicles. It also provides financial services through the Ford Motor Credit Company.
On April 27, Ford released Q1 financials. Total revenue came in at $34.5 billion, down 5% YOY. Diluted EPS declined to 38 cents, down from 70 cents for the year-ago quarter. The company ended the quarter with substantial cash and liquidity.
Ford’s European operations recently announced that the group chose its plant in Valencia, Spain, as the preferred site to build electric vehicles (EVs). Furthermore, the automotive powerhouse is also investing $2 billion to convert its Cologne, Germany, operations to produce electric passenger vehicles starting in 2023.
Ford stock is down 38% YTD. The current stock price currently supports a thick 3.2% dividend yield. Shares are trading at 6.1 times forward earnings and 0.36 times sales. Wall Street’s 12-month median price forecast for Ford stock is at $14.
Freeport-McMoRan (FCX)
Freeport-McMoRan (NYSE:FCX) is one of the largest global copper miners. It boasts significant projects, including the Indonesian Grasberg mining complex, the largest copper and gold mine in recoverable reserves.
The miner reported Q1 results on April 21. Revenue increased 36% YOY to $6.6 billion. Adjusted net income came in at $1.07 per share, compared to 51 cents a year ago. Cash and equivalents ended the period at $8.34 billion.
Global decarbonization strategies such as increased support for EVs or the use of residential and commercial solar panels continue to provide tailwinds for copper demand. EVs use about four times as much copper as internal combustion engines.
Recent metrics suggest the current global demand for copper is around 25 million metric tons. So analysts expect Freeport’s operations to remain strong.
Meanwhile, Freeport is on track to complete a project that could add 2 million tons of annual copper capacity to its Indonesian operation, allowing the company to more than double its output in 2020.
So far in 2022, FCX stock is down 32%. Shares hit a new 52-week low on July 14. They are trading at 7.5 times forward earnings and just 1.6 times sales. The 12-month median price forecast for Freeport stock is at $39.50.
PayPal (PYPL)
Our next bull market stock is the leading digital payment platform PayPal (NASDAQ:PYPL). It currently connects roughly 430 million accounts globally.
PayPal released Q1 results on April 27. Revenue grew 8% YOY to $6.5 billion. Meanwhile, adjusted earnings per share fell to 88 cents, down from $1.22 per share in the prior-year quarter. Free cash flow of $1.1 billion was down 32% YOY. Cash and equivalents ended the quarter at $15.1 billion.
Total payment volume during the quarter grew 15% YOY to $323 billion. However, growth in new active users is expected to decelerate through 2022. In 2022, management forecasts a 11% to 13% increase in net revenue in constant currency.
The financial technology giant recently announced PayPal Pay Monthly, its newest buy now, pay later (BNPL) offering issued by WebBank. Wall Street is debating how this move into the BNPL space will contribute to the top line growth.
PYPL stock is up slightly from its 52-week low, down 57% YTD. Shares are changing hands at 19 times forward earnings and 3.4 times sales. Meanwhile, the 12-month price forecast for PayPal stock stands at $112.
PVH (PVH)
PVH (NYSE:PVH) markets branded apparel globally. Its leading designer brands include Calvin Klein and Tommy Hilfiger, which currently generate more than 92% of total revenues.
The apparel giant released Q1 results on June 1. Revenue increased 2% YOY to $2.12 billion, reflecting continued momentum in Europe. Adjusted earnings stood at $1.92 per share. Cash and equivalents ended the quarter at $748.7 million. Management is targeting $12.5 billion in revenue by 2025.
Analysts concur a potential rebound in demand from China with the easing of pandemic restrictions could provide a significant boost to sales. Therefore, potential investors may want to keep an eye on the developments in China.
PVH stock is down 42% YTD. Shares are trading at a bargain valuation of 6.2 times forward earnings and 0.44 times sales. Analysts’ 12-month median price forecast for PVH stock stands at $90.50.
Trupanion (TRUP)
Pet platform Trupanion (NASDAQ:TRUP) offers a monthly subscription service, providing healthcare plans for pets stateside. It also works through affiliates in Canada and Puerto Rico.
This specialty insurance provider reported Q1 results on April 28. Revenue came in at $206 million, up 33% YOY. Diluted loss per share stood at 22 cents compared with 31 cents for the prior-year period. Free cash outflow during the quarter was $7.1 million. Cash and equivalents ended the period at $135.9 million.
Investors were pleased to see total number of pets enrolled in plans increased by 34% YOY in the first quarter. Additionally, the company saw its subscription business revenue grow 23% YOY to $139.8 million.
According to the North American Pet Health Insurance Association, North America’s pet insurance sector doubled over four years to exceed $2.83 billion at the end of 2021. The average annual growth rate for pet insurance is well over 23%.
So far in 2022, TRUP shares are down 50%. Shares are trading at 3.3 times sales. Meanwhile, the median 12-month price forecast for the pet insurer stands at $95.
On the date of publication, Tezcan Gecgil, Ph.D., 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.
