The stock market seems to be on track to close this month on a positive note as investors now believe that the Fed will end its aggressive interest rate hikes soon. Given the backdrop, we think fundamentally sound stocks Nokia (NOK), Assertio Holdings (ASRT), and Overseas Shipholding (OSG), which are trading under $10, could be worth adding to your portfolio. Keep reading….
Fed’s commitment to curb the multi-decade high inflation with its aggressive rate hikes has kept investors worried about a possible recession. Senator Elizabeth Warren Warning that the US would suffer a devastating recession if the Fed did not its rate hikes as monetary tightening ease cannot control all the factors contributing to the elevated inflation.
On the other hand, the stock market saw a rally lately, and the major indices seem on track for a winning week and the best month in 2022. The rally was driven by investors’ optimism that the Fed might end its aggressive rate hikes soon.
“The Fed may be still raising interest rates a little bit, but we know they’re not going to keep raising at the same level,” said Max Wasserman, senior portfolio manager and founder of Miramar Capital.
Amid this backdrop, fundamentally sound stocks Nokia Oyj (NOK), Assertio Holdings, Inc. (ASRT), and Overseas Shipholding Group, Inc. (OSG), which are currently trading under $10, could be solid additions to your portfolio.
Nokia Oyj (NOK)
Headquartered in Espoo, Finland, NOK provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments Mobile Networks; Network Infrastructure; Cloud and Network Services; and Nokia Technologies.
On July 28, NOK announced the signing of a five-year 5G deal with AST SpaceMobile, Inc. (ASTS), the company building the first space-based cellular broadband network accessible directly by standard 4G and 5G mobile devices.
Through this deal, NOK and ASTS should achieve their joint ambition of expanding universal coverage and connecting underserved communities worldwide. This is expected to be strategically beneficial for NOK.
NOK’s net sales increased 10.54% year-over-year to €5.87 billion ($5.98 billion) in the fiscal second quarter of 2022. Its operating profit grew 16.5% from the year-ago value to €564 million ($574.21 million), while its net profit came in at €460 million ($468.33 million), up 31.1% year-over-year. The company’s EPS grew 33.3% from the prior-year quarter to €0.08 in the same period.
Analysts expect NOK’s EPS for the fiscal quarter ending September 2022 to come in at $0.10, indicating an increase of 8.1% year-over-year. Also, the company’s EPS is expected to grow 6.1% year-over-year to $0.44 in the ongoing fiscal year. It surpassed the consensus EPS estimates in all the trailing four quarters.
NOK gained 8.8% over the past month to close the last trading session at $5.20.
NOK’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
NOK has an A grade in Value and a B in Sentiment. It is ranked #13 of 52 stocks in the Technology – Communication/Networking industry.
Beyond what is stated above, we’ve also rated NOK for Quality, Growth, Momentum, and Stability. Get all the NOK ratings here.
Assertio Holdings, Inc. (ASRT)
ASRT, a specialty pharmaceutical company, provides medicines in neurology, hospital, and pain and inflammation.
ASRT’s total return increased 36.1% from the prior-year quarter to $36.54 million in the fiscal quarter ended March 31, 2022. Income from operations for the quarter came in at $11.56 million, reflecting an increase of 54% year-over-year. The company’s net income stood at $9.06 million, up 99.5% year-over-year. Its net income per share increased 66.7% from its year-ago value to $0.20.
Analysts expect ASRT’s revenue for the fiscal quarter ending June 2022 to come in at $31.78 million, indicating an increase of 25.2% year-over-year. Also, the company’s revenue is expected to grow 18.7% year-over-year to $131.73 million in the ongoing fiscal year.
Over the past nine months, the stock has gained 256.9% to close the last trading session at $3.64. It gained 205.9% over the past year.
ASRT’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to Strong Buy in our POWR Ratings system.
ASRT also has an A grade in Growth, Value, and Quality and a B in Sentiment. Out of the 169 stocks in the Medical – Pharmaceuticals industry, it is ranked #11. To get ASRT’s ratings for Momentum, and Stability, click here.
Overseas Shipholding Group, Inc. (OSG)
OSG owns and operates a fleet of oceangoing vessels engaged in transporting crude oil and petroleum products in the United States flag trade.
On June 13, OSG announced a repurchase program of up to 5 million shares of the company’s common stock with its excess cash. The company may purchase the shares from time to time in open market transactions or privately negotiated transactions. This should enhance shareholder returns.
For the fiscal quarter ended March 31, 2022, OSG’s shipping revenues increased 28% year-over-year to $104 million. Its operating income grew 148.8% from the year-ago value to $7.70 million. Net cash provided by operating activities for the quarter stood at $1.79 million, reflecting a 119.4% increase year-over-year.
The stock has gained 30.3% over the past six months to close the last trading session at $2.28. It gained 21.3% year-to-date.
The company has an overall rating of A, translating to Strong Buy in our proprietary rating system.
OSG also has an A grade in Momentum and a B in Sentiment, Growth, and Quality. It is ranked #2 out of the 44 stocks in the A-rated Shipping industry. Click here for additional POWR Ratings for Value and Stability for OSG.
NOK shares were trading at $5.18 per share on Friday morning, down $0.02 (-0.38%). Year-to-date, NOK has declined -16.27%, versus a -13.22% rise in the benchmark S&P 500 index during 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. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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