Major stock market indices have fallen on fears of aggressive interest rate hikes by the Fed to control decades of high inflation and an imminent recession. Due to this market correction, the stocks of many financially important companies have fallen drastically. Shell (SHEL), Cheniere Energy (LNG), QUALCOMM (QCOM), AT&T (T), and Taiwan Semiconductor (TSM) are five stocks that could see a big rebound if concerns ease. In our proprietary rating system, these stocks are still rated “Buy” or “Strong Buy”. continue reading….
The stock market has been under pressure due to various macroeconomic and geopolitical factors. Several decades of high inflation, the persistent Russia-Ukraine crisis, skyrocketing energy and commodity prices, and supply chain sluggishness have forced investors to withdraw money from the stock market.
The May consumer price index saw its highest increase in four decades, prompting further aggressive monetary tightening by the Federal Reserve. Investors are scared of the Fed’s aggressive interest rate hike. Many analysts believe that raising benchmark interest rates more aggressively could push the economy into a recession.
Stocks of several major companies belonging to various industries vital to the functioning of the economy have fallen significantly due to the market downturn. However, once concerns over economic issues ease, these fundamentally strong stocks are expected to bounce back strongly due to their solid fundamentals and growth prospects.
Shell PLC (shell), Chenier Energy, Inc. ,LNG), Qualcomm Incorporated (qcom), AT&T Inc. ,Tea), and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMHere are five stocks that are well positioned to see a major rebound from their current price levels. So, these stocks can be solid additions to your portfolio. These shares are rated “strong buy” or “buy” in our ownership power rating Arrangement
Shell PLC (shell,
Headquartered in London, United Kingdom, SHEL is an international energy and petrochemical company. The company is engaged in exploration, production, refining and marketing of oil and natural gas and manufacturing and marketing of chemicals. Its businesses include Upstream, Integrated Gas, Renewables & Energy Solutions and Downstream.
On March 31, 2022, SHEL announced that Shell Trinidad & Tobago has commenced production on Block 22 and NCMA-4 in the North Coast Marine Region of Trinidad and Tobago.
Val Savon, SHEL’s Director of Integrated Gas, Renewable and Energy Solutions, said, “Colibri, along with other development projects, will see natural gas moving into both domestic petrochemical markets and LNG exports, in line with Trinidad and Tobago’s energy ambitions.” “
SHEL’s revenue grew 51.2% to $84.20 billion for the first quarter ended March 31, 2022. The company’s income grew 25.7% year-over-year to $7.11 billion. In addition, its eps $0.93, representing an increase of 29.1% year-on-year.
Analysts expect SHEL’s EPS to grow 122.6% year-on-year to $2.36 for the quarter ended September 30, 2022. Its revenue is expected to grow 87.5% year-over-year to $95.95 billion for the quarter ended June 30, 2022. It outperformed Street EPS estimates in three of the last four quarters. Over the past month, the stock is down 12.8% to close the previous trading session at $50.83.
SHEL’s power rating reflects solid prospects. The company has an overall B rating, which translates into a buy in our proprietary rating system. PoWR Ratings assesses stocks based on 118 different factors, each with its own weighting.
It has an A grade for momentum and a B grade for growth, sentiment and quality. It’s B-rated. Ranked #7 out of 100 stocks in Energy – Oil and Gas industry. click here To see SHEL’s other ratings for value and sustainability.
Chenier Energy, Inc. ,LNG,
LNG is an energy infrastructure company engaged in LNG-related businesses. The company provides clean, safe LNG to integrated energy companies, utilities and energy trading companies around the world. The company owns and operates two natural gas liquefaction and export facilities at Sabine Pass LNG and Corpus Christi LNG terminals.
On June 23, 2022, LNG announced that it had authorized an $8 billion expansion of its Corpus Christi plant and indicated further expansion in the future. The expansion will help it expand its liquefied natural gas production and meet growing demand.
For the fiscal first quarter ended March 31, 2022, LNG revenue grew 142% year-over-year to $7.48 billion. The company’s adjusted EBITDA increased 117% year-over-year to $3.15 billion. Also, its total current assets stood at $5.70 billion, compared to $5.05 billion for the fiscal year ended December 31, 2021.
For the quarter ended June 30, 2022, LNG’s EPS and revenue are expected to grow 354.6% and 94% year-over-year to $3.31 and $5.99 billion, respectively. Over the past month, the stock has lost 2.7% to close the previous trading session at $126.84.
LNG’s strong fundamentals are reflected in its power rating. The stock’s overall B rating translates into a buy in our proprietary rating system.
It has A grade for momentum. It is ranked #35 in the same industry. To see LNG’s other ratings for growth, price, sustainability, sentiment and quality, click here,
Qualcomm Incorporated (qcom,
Wireless technology company QCOM provides technology and products for mobile, wireless devices, automotive, computing, Internet of Things (IoT) and networking. It is also currently engaged in the development, launching and expansion of 5G technology.
On February 9, 2022, QCOM announced the opening of Extended Reality Labs in Europe. Hugo Swart, VP and GM of XR, Qcom, said, “These laboratories will be the key to building out our XR portfolio, which includes best-in-class platforms, software and innovative technology features and will help make it available to all developers. are available for. to build the metaverse through the snapdragon space.”
QCOM’s total revenue increased 40.7% year-over-year to $11.16 billion for the second quarter ended March 27, 2022. The company’s net income increased 66.5% year-over-year to $2.93 billion. In addition, its EPS came in at $2.57, representing an increase of 67.9% year-over-year.
Analysts expect QCOM’s EPS to increase 50% year-over-year to $2.88 for the quarter ended June 30, 2022. The company’s revenue for fiscal 2022 is expected to grow 33.4% year-on-year to $44.63 billion. It exceeded consensus EPS estimates in each of the last four quarters. Over the past month, the stock has fallen 7.1% to close the previous trading session at $122.16.
QCOM’s strong fundamentals are reflected in its POWR rating. The stock has an overall rating of A, which translates into a strong buy in our proprietary rating system.
It has a B grade for Growth, Value and Quality. It’s B-rated. Ranked #10 out of 96 stocks in semiconductor and wireless chip industry. click here To view QCOM’s other ratings for Momentum, Stability and Sentiment.
AT&T Inc. ,Tea,
T provides telecommunications, media and technology services globally. The company operates through three segments: Communications, WarnerMedia and Latin America.
For the fiscal first quarter ended March 31, 2022, T’s communications segment operating revenue grew 2.5% year-over-year to $28.87 billion. The company’s total operating expenses declined 10.5% year-over-year to $32.46 billion. Also, its total current assets came to $76.85 billion, compared to $59.99 billion for the fiscal year ended December 31, 2021.
Over the past month, the stock has fallen 0.3% to close the previous trading session at $20.32.
The POWR rating of T shows solid prospects. The stock has an overall B rating, which is equivalent to Buy in our proprietary rating system.
Taiwan Semiconductor Manufacturing Co., Ltd. (TSM,
Headquartered in Taiwan, TSM has been engaged in manufacturing and selling integrated circuit and semiconductor products. Its products are applied to personal computers, peripheral products, information applications, wired and wireless communication systems, industrial equipment, digital TVs and so on.
TSM’s net revenue grew 35.5% year-over-year to NT$491.07 billion ($16.47 billion) for the first quarter ended March 31, 2022. The company’s net income grew 45.1% year-over-year to NT$202.87 billion ($6.80 billion). , In addition, its EPS came in at NT$7.82, representing an increase of 45% year-over-year.
Analysts expect TSM’s EPS and revenue for the quarter ended June 30, 2022 to grow 58.1% and 36.2%, respectively, to $1.47 and $18.10 billion, respectively. It outperformed Street EPS estimates in three of the last four quarters. Over the past month, the stock has fallen 6.4% to close the previous trading session at $84.91.
TSM’s POWR rating reflects this promising outlook. The stock has an overall rating of B, which is the equivalent of Buy in our proprietary rating system.
It has an A grade for quality and a B grade for growth, stability and sentiment. It is ranked #24 in the semiconductor and wireless chip industry. click here To see TSM’s other ratings for value and speed.
Shares of SHEL rose $0.42 (+0.83%) in premarket trading on Thursday. Year-on-year, the SHEL has declined -1.81%, while the benchmark S&P 500 index has gained -20.59% during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This earned him a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a keen interest in reading and analyzing emerging trends in the financial markets.