The Fed hiked rates another 75 basis points this week after hotter-than-expected August CPI data. Officials have also indicated they will maintain their hawkish stance until the target level of 2% inflation is reached. In addition, many top analysts believe the economy could soon slide into recession as the Fed continues on its path of outrageous rate hikes.
According to CNBC’s September Fed survey, fund managers and strategists see a 52% chance that the US could go into recession in the next 12 months.
On the other hand, Cathie Wood of Ark Invest believes the Fed is too focused on raising interest rates to tame inflation as leading indicators show signs of deflation. “Leading inflation indicators such as gold and copper point to the risk of deflation. Even the price of oil has fallen more than 35% from its peak, erasing most of the gain this year,” she said.
With market volatility unlikely to abate anytime soon, we think investors should consider rock-solid shares of Bristol-Myers Squibb Company (BMY), AT&T Inc. (T) and Gilead Sciences, Inc. (GILD) that have the potential to deliver solid returns despite market uncertainties.
Bristol Myers Squibb Company (BMY)
BMY discovers, develops, licenses and commercializes biopharmaceutical products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience and Covid-19 diseases worldwide. It sells to wholesalers, distributors, pharmacies, retailers, hospitals, clinics and government agencies.
On September 16, the European Commission (EC) approved BMY’s fixed-dose combination opdual lag (Nivolumab and Relatlimab) for the first-line treatment of advanced melanoma in adults and adolescents with tumor cell PD-L1 expression
In the same month, BMY announced that the US Food and Drug Administration (USFDA) approved Sotyktu (deucravacitinib), a first-in-class, oral, selective, allosteric tyrosine kinase-2 (TYK2) inhibitor for the treatment of adults with moderate-to- to severe plaque psoriasis. These approvals mark significant milestones for the company.
BMY total revenues increased 2% year over year to $11.89 billion for the second quarter of the fiscal year ended June 30, 2022. EBIT was $1.96 billion, up 26.1% year-on-year, while net income increased 34.7% year-on-year to $1.43 billion. The company’s earnings per share for the same period rose 40.4% from the year-ago quarter to $0.66.
Street expects BMY revenue to be $11.76 billion for the fiscal quarter ended March 2023, indicating a slight year-over-year increase. The company’s EPS is also expected to increase 7% year over year to $2.10 over the same period. BMY beat consensus EPS estimates for all subsequent four quarters.
BMY is up 18.5% over the past year to close the last trading session at $71.29.
BMY’s POWR ratings reflect these promising prospects. The stock has an overall rating of A, which means strong buy in our proprietary rating system. The POWR Ratings evaluate stocks based on 118 different factors, each with its own weighting.
BMY also has an A grade in Value and a B in Growth, Sentiment and Quality. Of the 165 shares in the Medicine – Pharmacy Industry ranks BMY 4th.
We also rated BMY for stability and dynamics. Get all BMY ratings here.
AT&T Inc. (T)
T is a leading global telecommunications, media and technology services provider. The Company operates through three segments: Communications; WarnerMedia; and Latin America.
On August 30, 2022, T announced the expansion of its fiber optic internet services to provide reliable and fast broadband in Arizona. “Fiber is undoubtedly the best technology for delivering high-speed broadband, and this expansion allows AT&T to aggressively roll out the service in the Mesa territory,” said John Stankey, CEO of T.
For the fiscal second quarter ended June 30, 2022, T’s net income increased 164.8% year over year to $4.16 billion. The company’s operating expenses fell 12.3% year over year to $24.69 billion. Also, earnings per share rose 154.5% year over year to $0.56.
The company has an impressive earnings surprise record, having beaten consensus estimates for earnings per share in each of the last four quarters.
The T-Share fell marginally during the day, closing the last trading session at $16.24.
T’s POWR ratings reflect a solid outlook. It has a B grade for value. Within the Telecom – Domestic 6th out of 20 stocks in the industry.
click here to view T’s additional POWR ratings for Growth, Momentum, Stability, Sentiment and Quality.
Gilead Sciences, Inc. (GILD)
Biopharmaceutical company GILD discovers, develops and commercializes drugs in the United States, Europe and internationally to treat life-threatening diseases, including HIV, viral hepatitis and cancer.
On September 22, GILD announced a new multi-year public-private initiative with the Partnership for Health Advancement in Vietnam (HAIVN) to address barriers limiting the diagnosis of viral hepatitis in primary health care facilities in Vietnam and the Philippines.
“This approach has significant potential for application in many other disease areas and in low- and middle-income countries where specialized providers are scarce,” said Dr. Harald Nusser, Vice President, Head of Global Patient Solutions, GILD.
GILD’s total revenues increased slightly year-over-year to $6.26 billion for the second quarter ended June 30, 2022. The company’s total product sales from the HIV segment increased 7.3% year over year to $4.22 billion. In addition, current liabilities decreased 20.5% to $9.22 billion for the six-month period ended June 30, 2022.
For the fourth fiscal quarter ended December 2022, GILD’s earnings per share are expected to increase 101.3% year-on-year to $1.39. During the same period, consensus sales are estimated at $6.32 billion.
Over the past six months, the stock is up 6.3% to close the last trading session at $63.77.
It’s no surprise that GILD has an overall rating of B, resulting in a purchase in our proprietary rating system. The stock is rated A for value and B for quality. Inside the 396 camp biotech Industry is GILD in 10th place.
To see GILD’s other ratings for Growth, Momentum, Stability and Sentiment, click here.
BMY shares traded at $70.64 per share on Friday afternoon, down $0.65 (-0.91%). Year-to-date, BMY is up 15.93% versus the benchmark S&P 500 index’s -21.72% gain over the same period.
About the Author: Komal Bhattar
Komal’s passion for the stock market and financial analysis led her to pursue investment research as a career. Their fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More…