This year has been a wild ride for stocks amid the skyrocketing inflation and the Fed’s attempts to rein it by aggressively hiking interest rates. Moreover, a strong job market is expected to encourage the Fed to tighten its monetary policy.
According to the Conference Board, the U.S. economy is considerably cooling off and will likely slide into a recession by the end of 2022. The slowing economy over the past months is “suggesting recession risks in the near term,” said Ataman Ozyildirim, the senior director of economics at The Conference Board.
Investors are awaiting the Jackson Hole symposium this week. “The market is biding its time to get more information on the most important things, which are inflation and the Fed’s rate path,” said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta.
Given the volatile backdrop, investors could consider adding these low beta stocks, KT Corporation (KT) and Bridgestone Corporation (BRDCY), to their portfolios.
KT Corporation (KT)
Headquartered in Seongnam, South Korea, KT provides integrated telecommunications and platform services in Korea and internationally.
On June 19, KT and Hanmi Pharmaceutical, a pharmaceutical company specializing in R&D-focused new drug development, co-invested in Digital Pharm, a company specializing in DTx and electroceuticals. This should help KT bolster its existing capabilities.
KT’s operating revenue increased 4.7% year-over-year to ₩6,312.20 billion ($4.70 billion) in the fiscal second quarter of 2022, while its EBITDA increased marginally from the year-ago value to ₩1,387.20 billion ($1.03 billion).
Analysts expect KT’s revenue to come in at $3.59 billion in the fiscal quarter ending September 2022. Also, its revenue is expected to come in at $14.16 billion in the ongoing fiscal year.
KT gained 13.7% year-to-date to close the last trading session at $14.29. KT has a beta of 0.41, indicating significant stability.
KT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to Strong Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
KT also has an A grade in Value and Stability and a B in Sentiment. It is ranked #4 of 47 stocks in the A-rated Telecom - Foreign industry.
Beyond what is stated above, we’ve also rated KT for Growth, Quality, and Momentum. Get all KT ratings here.
Bridgestone Corporation (BRDCY)
Headquartered in Tokyo, Japan, BRDCY manufactures and sells tires and rubber products. It operates through two segments: Tires and Diversified Products.
On August 10, BRDCY announced its plans to invest $26.70 million in its natural rubber plantations in Southeast Asia. This should bolster the company’s initiatives to contribute to circular economies and carbon neutrality across the entire value chain.
BRDCY’s revenue increased 24.9% year-over-year to ¥1,886.34 billion ($13.78 billion) in the first half of 2022, while the adjusted operating profit grew 13.3% from the year-ago value to ¥206.63 billion ($1.51 billion).
Street expects BRDCY’s revenue in the ongoing fiscal year to come in at $27.52 billion, indicating an increase of 279.1% year-over-year. It has a 0.54 beta.
BRDCY’s shares have gained 4.7% over the past month to close the last trading session at $19.82.
BRDCY’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to Buy in our rating system.
The company has an A grade in Quality and a B in Stability. Out of the 67 stocks in the B-rated Auto Parts industry, BRDCY is ranked #13. To get BRDCY’s ratings for Growth, Value, Momentum, and Sentiment, click here.
KT shares were trading at $14.25 per share on Thursday afternoon, down $0.04 (-0.28%). Year-to-date, KT has gained 13.37%, versus a -12.00% 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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