The stock market sell-offs triggered by macroeconomic and geopolitical issues since the beginning of the year have driven many quality stocks into the oversold territory. So, it could be wise to invest in oversold stocks Gilead Sciences (GILD) and Comcast (CMCSA), which have solid rebound potential. Let’s discuss….
The stock market has experienced a turbulent year so far due to various macroeconomic and geopolitical issues. The economy has been facing its worst inflation in 41 years, with the June consumer price index rising 9.1% from a year-ago period.
Investors have been concerned about a recession this year as the Federal Reserve has been actively to control the surging inflation by hiking the benchmark interest rates. Having already hiked the interest rates thrice this year, the Fed plans further aggressive interest rate hikes. The economic uncertainties and consequent market corrections have led to many quality stocks entering oversold territory.
Quality stocks Gilead Sciences, Inc. (GILD(and Comcast Corporation)CMCSA) have faced the brunt of intense selling and are now trading in oversold territory. Investors can consider adding these stocks to their portfolio based on their strong financials and growth prospects before they blast off.
Gilead Sciences, Inc. (GILD)
GILD is a biopharmaceutical company focused on advancing medicines to prevent and treat diseases, including human immunodeficiency virus, viral hepatitis, and cancer. The company’s portfolio of products and pipeline of investigational drugs includes treatments for HIV, COVID-19, liver diseases, and hematology/oncology/cell therapy.
On April 19, 2022, GILD’s company Kite announced that the US Food and Drug Administration (FDA) had approved commercial production at its new CAR T-cell therapy manufacturing facility in Frederick, Maryland. Kite’s CEO Christi Shaw said, “The FDA approval of our Maryland site marks an important milestone within our global CAR T-cell therapy manufacturing network and will enable us to significantly expand our production capacity and further strengthen our ability to meet the needs of people living with difficult-to-treat blood cancers.”
GILD’s revenue increased 2.6% year-over-year to $6.59 billion for the first quarter ended March 31, 2022. The company’s non-GAAP income from operations increased 2.9% year-over-year to $3.52 billion. Also, its non-GAAP EPS came in at $2.12, representing an increase of 3.9% year-over-year.
Analysts expect GILD’s EPS for the quarter ending December 31, 2022, to increase 103.9% year-over-year to $1.41. It surpassed Street EPS estimates in three of the trailing four quarters. The stock has lost 13.8% year-to-date to close the last trading session at $62.60.
GILD’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Value and a B grade for Sentiment and Quality. It is ranked #5 out of 401 stocks in the Biotech industry. Click here to see the other ratings of GILD for Growth, Momentum, and Stability.
Comcast Corporation (CMCSA)
CMCSA is a media and technology company. Its Cable Communications segment consists of the operations of Comcast Cable, which provides broadband, video, voice, and other services under the XFINITY brand. Its Media segment consists of television and streaming platforms. Its Studios segment consists of film and television studio production and distribution operations. The company has three primary businesses: Comcast Cable, NBCUniversal, and Sky.
On April 27, 2022, CMCSA and Charter Communications, Inc (CHTR) announced that the two companies had formed a 50/50 joint venture to develop and offer a next-generation streaming platform. CMCSA CEO Dave Watson said, “This partnership uniquely technical brings together more than a decade of innovation, national scale, and new opportunities to monetize our combined investment.”
For the fiscal first quarter ended March 31, 2022, CMCSA’s revenue increased 13.9% year-over-year to $31.01 billion. The company’s adjusted net income increased 10.5% year-over-year to $3.90 billion. Also, its adjusted EBITDA increased 8.7% year-over-year to $9.15 billion. In addition, its adjusted EPS came in at $0.86, representing an increase of 13.1% year-over-year.
For fiscal 2023, CMCSA’s EPS is expected to increase 12% year-over-year to $4.02. Its revenue for fiscal 2022 is expected to increase 5% year-over-year to $122.24 billion. It surpassed consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has lost 29.4% to close the last trading session at $40.90.
CMCSA’s POWR Ratings reflects this promising outlook. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Stability, and Quality. Within the Entertainment – TV & Internet Providers industry, it is ranked first out of nine stocks. To see the other ratings of CMCSA for Value, Momentum, and Sentiment, click here.
GILD shares were unchanged in premarket trading Monday. Year-to-date, GILD has declined -11.60%, versus a -18.31% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
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