The S&P 500 spent much of 2021 rising, continuing its strong performance after recovering from the pandemic-triggered crisis in the first quarter of 2020. However, September marked the index’s worst month since March. 2020.
Since the next Q3 earnings season expected to be strong and proposed infrastructure spending is expected to boost the performance of several sectors, the market could rebound after the September crisis.
Against this background, we believe that the fundamentally sound stocks of Lufax Holdings Ltd. (READ), Addus HomeCare Corporation (ADUS), Tupperware Brands Corporation (SHEEP) and Outbrain Inc. (BO), down more than 24% this year, could experience a sustained rebound in the coming months. So these stocks could be good bets now.
Lufax Holdings Ltd. (READ)
LU operates a technology-based personal financial services platform. It offers a variety of loan options including secured and unsecured loans and consumer finance loans. In addition, the company offers wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore) and Lu International (Hong Kong), for middle class and affluent investors to invest in products and wallets; retail credit facilitation services platform that provides small business owners with lending solutions; and technology empowerment solutions for financial institutions.
In June, LU’s subsidiary, Lu International, announced a strategic collaboration with Schroders Singapore, a wholly-owned subsidiary of Schroders, an asset management company, to co-innovate digital wealth solutions in Southeast Asia. East, with the aim of meeting the growing demands of the region. individual investors.
LU’s net profit increased 53.2% year-on-year to 4.73 billion RMB ($ 732 million) in the second quarter ended June 30, 2021. Its EPS was 1.86 RMB ( $ 0.29) during this period. In addition, the company Cash and cash equivalents jumped 63.1% from the previous year’s quarter to 24.72 billion RMB ($ 3.83 billion).
The company’s EPS is expected to increase 11.6% year-on-year to $ 1.06 in fiscal 2021. Analysts expect LU revenue to increase 18.4% year-on-year to $ 9.45 billion for the current year. The stock is down 51.6% year-to-date and 51.9% in the past nine months.
UL POWR odds reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. POWR ratings evaluate stocks based on 118 different factors, each with its own weight.
LU also got an A rating for sentiment and a B rating for momentum and quality. Within the Financing of foreign consumers industry, it is ranked # 1 out of 13 stocks.
To see additional POWR ratings for Growth, Stability, and Value for LU, Click here.
Addus HomeCare Corporation (ADUS)
ADUS provides personal care services to the elderly, the chronically ill, the disabled, and those at risk of hospitalization or institutionalization in the United States. Personal care ; Hospice; and Home Health are the three operating segments of the company.
This month, ADUS completed the acquisition of Summit Home Health, LLC. With this acquisition, the company aims to expand clinical services in areas where it already has a strong presence in the field of personal care and offers new opportunities for value-added care.
During the second quarter ended June 30, 2021, ADUS ‘net service revenue increased 18.1% year-over-year to $ 217.89 million. Its operating profit rose 77.5% from a year ago value to $ 17.05 million, while its net profit jumped 67.9% year-on-year to reach $ 11.60 million during this period. The company’s EPS rose 67.4% from last year’s value to $ 0.72.
The consensus estimate of EPS of $ 3.48 for the current year represents a 13% year-over-year improvement. Analysts expect ADUS revenue to grow 15% year-on-year to $ 879.46 million in fiscal 2021. The stock was down 19% in last year and 34% since the start of the year.
ADUS’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our POWR rating system. The stock also has a B rating for growth and sentiment. In the Medical services industry, it is ranked No. 22 out of 84 stocks.
In total, we rate ADUS on eight different levels. Beyond what we’ve stated above, we’ve also given ADUS ratings for value, stability, dynamics, and quality. Get all ADUS reviews here.
Tupperware Brands Corporation (SHEEP)
TUP operates as an international consumer products company. The company manufactures, promotes and sells design-driven prep, storage and service solutions for the kitchen and home. The company distributes its products in approximately 80 countries through independent members of the sales force, including independent distributors, directors, managers and resellers.
In June, TUP prepaid its $ 58 million term debt to Angelo Gordon and JP Morgan, and its board of directors approved share repurchases of up to $ 250 million of the outstanding common shares of the society. This shows the good financial health of the company.
For the second quarter ended June 26, 2021, TUP’s net sales increased 16.9% year-over-year to $ 464.7 million. Its operating profit increased 63.2% year-over-year to $ 75.9 million. The company’s net income was $ 35.6 million, while its EPS was $ 0.67 over that period.
Analysts expect TUP’s EPS to rise 43.3% year-on-year to $ 3.21 next year. TUP’s revenue is expected to grow 7% in fiscal 2021. The stock is down 33.9% so far this year and 19.2% in the past six months.
TUP’s POWR ratings reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. TUP also earned an A grade for quality and a B for value. In category B Home Improvements and Property industry, it is ranked # 14 out of 64 stocks.
Click here to see additional POWR ratings for growth, stability, sentiment and momentum for TUP.
Outbrain Inc. (BO)
OB provides an online content recommendation platform to people around the world. It offers personalized feeds and data-driven suggestions to media partners, along with a solution that increases user engagement and a web-based dashboard to manage and control different parts of its platform.
This month, OB renewed its collaboration with Immediate Media, the award-winning special interest content and platform company that reaches over 16 million UK consumers engaged per month. With this, Immediate Media will begin using OB’s Smartfeed, a configurable content discovery feed that enables publishers to optimize the user experience to increase engagement and revenue.
In addition, this month OB entered into a new partnership agreement with Pijper Media, a well-known media company in the Netherlands. This illustrates the tremendous momentum OB is taking in the Netherlands and across the region.
OB’s revenue increased 56.6% year-on-year to $ 247.15 million in the second quarter ended June 30, 2021. Its operating profit increased significantly from the value of l last year to reach $ 17.16 million. The company reported net profit of $ 15.20 million, compared to a net loss of $ 2.62 million in the previous year quarter. Its EPS was $ 0.28, compared to a loss per share of $ 0.16 in the second quarter of 2020.
The consensus estimate of revenue of $ 1.21 billion for next year represents a 21.7% year-over-year increase. OB’s EPS is expected to rise 27.4% year-on-year to $ 0.73 in fiscal 2022. Additionally, the stock is down 24.7% year-to-date.
It’s no surprise that OB has an overall rating of B, which equates to Buy in our POWR rating system. The stock also has a B rating for quality, sentiment and momentum. In the Technology – Services industry, it is ranked # 11 out of 71 stocks.
In addition to the POWR Ratings that I just highlighted, you can see OB ratings for growth, value and stability.
CX shares were trading at $ 6.91 per share on Tuesday morning, down $ 0.11 (-1.57%). Year-to-date, CX has gained 33.66%, compared to 17.34% for the benchmark S&P 500 during the same period.
About the Author: Priyanka Mandal
Priyanka is an avid investment analyst and financial journalist. After get a master’s degree in economics, her interest in financial markets motivated her to start her career in investment research. Following…