3 oversold stocks rated “Strong Buy”
Aggressive monetary tightening by the Federal Reserve to combat decades-long high inflation and ongoing geopolitical tensions have fueled a sell-off in equity markets this year. The potential for the the economy slipping into a recession in the short term has heightened investor concerns. As a result, many quality stocks have entered oversold territory.
The US Consumer Price Index (CPI) data report due out this Friday will determine the Fed’s future actions to lower prices. After a slight dip in April, many analysts expect May inflation data to remain stable. Economists predict underlying inflation of 5.9% in May.
Given the expectation of some improvement, we think investors should consider buying Agilent Technologies, Inc. price declines (A), Hillenbrand, Inc. (HELLO) and TriNet Group, Inc. (TNET). These names have the potential to rebound soon. Also, our owner POWR Rankings system rated these stocks as “Strong Buy”.
Agilent Technologies, Inc. (A)
Based in Santa Clara, California, A provides basic bio-analytical and electronic measurement solutions to the life diagnostics and applied chemistry markets. The company offers electronic and bio-analytical measurements, semiconductor and board testing. It markets its products through direct sales, distributors, resellers, manufacturers’ representatives and e-commerce.
On June 6, 2022, A announced the release of its MassHunter BioConfirm 12.0 software, which now supports data generated by A’s Agilent high-resolution LC/MS for oligonucleotide purity analysis and sequence confirmation. As the demand for oligonucleotide analysis capabilities increases, this integrated BioConfirm 12.0 workflow quickly generates accurate results and saves significant time and resources compared to the traditional approach. The software is expected to see strong demand in industry to aid in the research and development of biotherapies and vaccines.
A’s net revenue in the second quarter of fiscal 2022 increased 5.4% year-on-year to $1.61 billion. The company’s operating income was $360 million, indicating a 25% year-over-year improvement. While its non-GAAP net income rose 13.7% year-on-year to $340 million, its non-GAAP EPS rose 16.5% to $1.13. As of April 30, 2022, the company had $1.19 billion in Cash and cash equivalents.
Analysts expect A’s EPS to rise 19.6% year-over-year to $4.58 for its 2022 fiscal year ending Oct. 31, 2022. It topped EPS estimates of Street in each of the last four quarters. The consensus revenue estimate of $5.26 for the same fiscal year represents a 12.3% increase over the prior year period. The company’s EPS is expected to grow at a rate of 14% per year over the next five years.
Over the past three months, the stock has fallen 4.7% to close yesterday’s trading session at $127.63, down 28.9% from its 52-week high at 179, $57.
POWR ratings of A reflect its strong outlook. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.
It has a B rating for growth, sentiment and quality. In addition to the POWR Ratings we just highlighted, we can see the ratings for A’s Momentum, Stability and Value here.
A is ranked #3 out of 52 stocks in the Medical – Diagnosis/Research industry.
Click here to view our 2022 Healthcare Sector Report
Hillenbrand, Inc. (HELLO)
hi in Batesville, Ind., is a diversified industrial company that manufactures and sells premium business-to-business products and services worldwide. The company operates through Advanced Process Solutions; Casting technology solutions; and Batesville. It designs equipment and systems used in processing applications and offers compounding and extrusion equipment, bulk material handling systems and related engineering services.
For its second quarter of fiscal 2022, ended March 31, 2022, HI’s net revenue increased 2.7% year-over-year to $742 million. The company’s adjusted EPS was $1.01, representing an increase of 3.1% over the prior year period. The company had $444.80 million in cash and cash equivalents as of March 31, 2022.
The consensus EPS estimate of $3.89 for its fiscal year 2022, ending September 30, 2022, indicates a 2.7% increase over the prior year period. It has exceeded consensus EPS estimates in each of the past four quarters. Analysts expect the company’s revenue to rise 2.2% year-over-year to $2.93 billion for the same fiscal year. HI’s EPS is expected to grow at a rate of 12% per year over the next five years.
Over the past three months, the stock price has fallen 6% to close yesterday’s trading session at $44.28, down 18.2% from its 52-week high at 54. .15$.
HI’s POWR ratings reflect this promising outlook. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system.
It has a B rating for value, growth and quality. Click here to see additional ratings for HI stability, momentum and sentiment.
HI is ranked #3 out of 36 stocks in the B rating Industrial – Manufacturing industry.
Click here to view our Industrial Sector Report for 2022
TriNet Group, Inc. (TNET)
TNET provides human resources (HR) solutions, payroll services, employee benefits and employment risk mitigation services for small and medium-sized businesses in the United States. Offering its solutions through its direct sales organization, the Based in San Leandro, CA The company serves clients in the technology, professional services, financial services, nonprofit, property management, retail, manufacturing, hospitality and life sciences industries. life.
On May 3, 2022, TNET launched a major overhaul of its customer-facing technology platform that will meet the demands of today’s evolving workforce and deliver a more visual, intuitive and optimized experience across all devices. devices. Features like workforce analytics dashboards, document management, mobile integration, and a knowledge center should help customers make more informed decisions while streamlining workflows. The redesign is expected to see strong demand from small and medium-sized enterprises (SMEs) in the coming months.
TNET’s operating revenue for its first quarter of fiscal 2022, ended March 31, 2022, increased 14.9% year-on-year to $1.22 billion. The company’s operating profit was $204 million, representing a 47.8% year-over-year improvement. Its adjusted net income was $168 million for the quarter, indicating a 51.4% increase over the prior year period. And TNET’s adjusted EPS rose 53.6% year over year to $2.55. The company had $235 million in cash and cash equivalents as of March 31, 2022.
TNET has exceeded Street EPS estimates in each of the past four quarters, which is impressive. The consensus revenue estimate of $1.24 billion for its fiscal year 2022, ending December 31, 2022, represents a 3% increase over the prior year period. The company’s EPS is expected to grow at a rate of 7.3% per year over the next five years.
Over the past three months, the stock has fallen 9.7% to close yesterday’s session at $79.27, down 27.5% from its 52-week high at $109.40. .
TNET’s strong fundamentals are reflected in its POWR ratings. It has an overall A rating, which equals Strong Buy in our proprietary rating system.
The stock has a B rating for value and quality. Click on here to see additional ratings for TNET (Momentum, Growth, Stability and Sentiment).
The stock is ranked #4 out of 44 stocks in the B rating Outsourcing – Business Services industry.
A shares were trading at $127.35 per share on Tuesday afternoon, down $0.28 (-0.22%). Year-to-date, A is down -20.00%, compared to a -13.15% rise in the benchmark S&P 500 over the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a particular interest in researching market inefficiencies. She is passionate about educating investors, so they can succeed in the stock market. After…