The stock market has been extremely volatile since the beginning of the year due to investors’ concerns about various economic and geopolitical developments. Since the volatility is expected to continue in the coming months, we think it could be wise to bet on APA (APA), ICL Group (ICL), ZIM Integrated Shipping (ZIM), MTN Group (MTNOY), and Dillard’s (DDS) , which are stocks that have gained more than 90% in price over the past year and still have plenty of upside to deliver because of their fundamental strength or favorable industry trends. Read on.
The major stock market indexes have been volatile since the beginning of the year due to soaring inflation, Russia’s invasion of Ukraine, and rising crude oil prices. After stabilizing briefly, the markets declined again on investors’ concerns about further sanctions on Russia and the possibility of extensive interest rate hikes later this year.
Despite the market’s volatility, some stocks in the agriculture, chemicals, oil and gas, shipping, and retail sectors have displayed exceptional strength. These stocks have been little affected by recent economic or geopolitical factors. In fact, these events have proved to be a boon for these industries or businesses. For example, the oil and gas industry has benefited from energy prices precipitated by the rising Russia-Ukraine crisis.
Due to industry tailwinds and/or solid fundamentals, these stocks have delivered stellar returns over the past year. So, since the market is expected to remain volatile in the near term, we think it could be wise to add APA Corporation (APA), ICL Group Ltd (ICL), ZIM Integrated Shipping Services Ltd. (ZIM), MTN Group Limited (MTNOY), and Dillard’s, Inc. (DDS) to one’s portfolio because they have delivered more than 90% returns over the past year and are expected to advance even more.
APA Corporation (APA)
Houston, Tex.-based APA, through its subsidiaries, explores for and produces oil and gas. Its operations are across the United States, Egypt, United Kingdom, and offshore exploration activities in Suriname. The company also gathers and processes transmission assets in West Texas and owns four Permian-to-Gulf coast pipelines.
On Feb. 21, 2022, APA announced an oil discovery at the Krabdagu-1 exploration well located on Block 58 offshore Suriname. APA’s CEO and President John J. Christmann IV said, “The promising discovery at Krabdagu is another important step toward achieving our first FID in Block 58 offshore Suriname, and we are looking forward to continuing our exploration and appraisal programs.”
APA’s total revenues have increased 80% year-over-year to $7.98 billion for its fiscal year ended Dec. 31, 2021. The company’s adjusted EBIDAX increased 108.6% year-over-year to $4.57 billion. And its adjusted earnings came in at $1.46 billion, compared to a $407 million adjusted loss.
Analysts expect APA’s EPS and revenue for the quarter ending June 30, 2022, to increase 225.7% and 52.1% year-over-year to $2.28 and $2.23 billion, respectively. It surpassed the Street’s EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 127.5% in price to close the last trading session at $41.
APA’s POWR Ratings reflect solid prospects. According to our proprietary rating system, it has an overall B rating, which translates to a Buy. The POWR Ratings assesses stocks by 118 distinct factors, each with its own weighting.
It has an A grade for Momentum and Quality. It is ranked #15 out of 96 stocks in the B-rated Energy – Oil & Gas industry. Click here to see the other ratings of APA for Growth, Value, Stability, and Sentiment.
Note that APA is one of the few stocks handpicked currently in the Reitmeister Total Return portfolio. Learn more here.
ICL Group Ltd (ICL)
Headquartered in Tel Aviv, Israel, ICL is a specialty minerals and chemicals company. It is engaged in the fertilizer and specialty chemical sectors. The company operates in the fertilizers; industrial products; and performance products segments.
On Dec. 22, 2021, ICL announced that it would be supplying clear brine fluids to the United Arab Emirates directly from Israel for the first time. ICL’s President of Industrial Products Anat Tal said, “Sales of clear brine fluids have increased as the year has progressed, and we anticipate this trend will continue into 2022. With the return of drilling activity, we foresee additional commercial opportunities in the Emirates.”
For its fiscal year ended Dec. 31, 2021, ICL’s sales increased 37.9% year-over-year to $6.95 billion. Its adjusted net income increased 219.3% year-over-year to $824 million. Also, its adjusted EBITDA increased 65.8% year-over-year to $1.64 billion. In addition, its adjusted operating income increased 135% year-over-year to $1.19 billion.
For its fiscal year 2022, ICL’s EPS for the quarter ending June 30, 2022, is expected to increase 164.1% year-over-year to $0.28. Its revenue for fiscal 2022 is expected to increase 27.5% year-over-year to $8.87 billion. And over the past year, the stock has gained 91.5% in price to $11.97.
ICL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system.
It has a B grade for Growth, Stability, Sentiment, and Quality. It is ranked #3 out of 89 stocks within the A-rated Chemicals industry. To see the other ratings of ICL for Value and Momentum, click here.
ZIM Integrated Shipping Services Ltd. (ZIM)
ZIM is a Haifa, Israel-based company that provides customers with innovative seaborne transportation and logistics services. The company operates as a fleet and a network of shipping lines offering cargo transportation services globally. The company also provides multi-modal cargo handling, tariff management, schedule information, and other services.
On March 30, 2022, ZIM announced a new charter transaction with a group of investors initiated by MPC Capital AG. ZIM’s President and CEO Eli Glickman said, “We are pleased to announce another attractive chartering transaction for newbuild vessels, securing modern and efficient tonnage vessels which are ideally suited to serve our expanded network of expedited services, as well as other regional services.”
ZIM’s revenues for its fiscal fourth quarter, ended Dec. 31, 2021, increased 155.1% year-over-year to $3.46 billion. The company’s adjusted EBITDA increased 345% year-over-year to $2.36 billion. Also, its free cash flow increased 324.8% year-over-year to $1.66 billion.
Analysts expect ZIM’s EPS and revenue for the quarter ending March 31, 2022, to increase 142.4% and 114.8%, respectively, year-over-year to $12.53 and $3.47 billion. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 127.7% in price to close the last trading session at $59.78.
ZIM’s POWR Ratings reflect solid prospects. According to our proprietary rating system, it has an overall A rating, which translates to a Strong Buy.
It has an A grade for Value and Quality and a B grade for Growth and Momentum. It is ranked #4 out of 44 stocks in the B-rated shipping industry. Click here to see the ZIM’s Stability and Sentiment grade.
MTN Group Limited (MTNOY)
Headquartered in Johannesburg, South Africa, MTNOY is a mobile telecommunication operator. It offers voice, data, and digital services to retail customers. Its segments are South Africa; Nigeria; South and East Africa and Ghana; West and Central Africa; and the Middle East and North Africa. The company offers consumer, digital, and business services.
On March 17, 2022, MTNOY announced that MTN SA had secured a high-demand spectrum to support its 4G and 5G expansion drive. The company acquired 100MHz across the 800MHz, two 600MHz, and three 500MHz frequency bands. The acquisition will increase MTN SA’s total permanent spectrum holdings to 176MHz from 76MHz. The spectrum has been allotted for 20 years and on a technology-neutral basis.
For its fiscal year ended Dec. 31, 2021, MTNOY’s revenue came in at R181.64 billion ($12.33 billion), compared to R179.36 billion ($12.17 billion) in the year-ago period. The company’s headline earnings increased 31.9% year-over-year to R17.78 billion ($1.20 billion). Also, its EPS came in at 962 cents, compared to 741 cents in the year-ago period.
For its fiscal year 2023, analysts expect MTNOY’s revenue to increase 11.7% year-over-year to $14.95 billion. Over the past year, the stock has gained 111.1% in price to close the last trading session at $12.46.
MTNOY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Stability, and Quality. Within the A-rated Telecom – Foreign industry, it is ranked #6 out of 47 stocks. To see the other ratings of MTNOY for Value, Momentum, and Sentiment, click here.
Dillard’s, Inc. (DDS)
DDS in Little Rock, Ark., is a retailer of fashion apparel, cosmetics, and home furnishings. It operates approximately 280 Dillard’s stores, including 31 clearance centers and an internet store offering a selection of merchandise, including fashion apparel for men, women, and kids, accessories, cosmetics, home furnishings, and other consumer goods.
DDS’ net sales increased 34.5% year-over-year to $2.11 billion for its fourth quarter, ended Jan. 29, 2022. The company’s net income increased 379.4% year-over-year to $321.20 million. Also, its EPS came in at $16.61, representing a 444.5% year-over-year increase.
Analysts expect DDS’ revenue for the quarter ending April 30, 2022, to increase 11.8% year-over-year to $1.52 billion. It surpassed the Street’s EPS estimates for each of the trailing four quarters. The stock has gained 187.6% in price over the past year to close the last trading session at $266.43.
DDS’ POWR Ratings reflects this promising outlook. The stock has an overall B rating, which equates to Buy in our proprietary rating system.
It has an A grade for Value and Quality. It is ranked #20 out of 66 stocks in the A-rated Fashion & Luxury industry. Click here to see the other ratings of DDS for Growth, Momentum, Stability, and Sentiment.
APA shares rose $0.20 (+0.49%) in premarket trading Friday. Year-to-date, APA has gained 53.81%, versus a -5.32% 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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