Concerns over the possible consequences of the Russia-Ukraine war and the economic impacts of the likely aggressive interest rate hikes have been leading to significant price swings in the stock market. As a result, many stocks have entered oversold territory despite possessing sound financials.
Though these factors are expected to keep the market volatile in the future, the recent correction could be an opportune time to invest in stocks that are currently trading at prices lower than their intrinsic values.
Stellantis N.V. (STLA), Movado Group, Inc. (MOV), and Bluegreen Vacations Holding Corporation (BVH) have reached the oversold territory lately. But given their fundamental strength, these stocks could rebound in the upcoming months. So, it could be wise to add these stocks to your portfolio now.
Stellantis N.V. (STLA)
Headquartered in Hoofddorp, the Netherlands, STLA is engaged in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, and production systems worldwide. It offers luxury, premium, and mainstream passenger vehicles; pickup trucks, sport utility vehicles, and commercial vehicles.
This month, STLA announced the launch of its first venture capital fund with the creation of Stellantis Ventures. The fund will initially invest €300 million in early and later-stage startup companies to develop innovative, customer-centric technologies that could be posted within the automotive and mobility sector. Stellantis Ventures will perform as a strategic investor and assist startups in combining new technologies within the company in compressed timeframes.
Also, in January, STLA announced its collaboration with Amazon, which involves Amazon Devices, Amazon Web Services (AWS), and Amazon Last Mile, which will accelerate STLA's inclination to become a sustainable mobility tech company. Under this collaboration, STLA and Amazon will collaborate to deploy Amazon's technology and software expertise across STLA's organization, including vehicle development, building connected in-vehicle experiences, and training the next generation of automotive software engineers.
For the fiscal year ended December 31, 2021, STLA's net revenue increased 213.5% year-over-year to €149.42 billion ($164.11 billion). Its operating income grew 402.5% from the year-ago value to €15.13 billion ($16.61 billion), while its net profit improved 602.3% year-over-year to €14.21 billion ($15.61 billion) over the period. The company's EPS increased 189% from its year-ago value to $4.19.
Analysts expect STLA's revenue to increase 6.1% year-over-year to $182.38 billion in fiscal 2022. The stock has declined 17.2% over the past month.
STLA's POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
STLA is also rated an A grade for Value and a B for Quality and Sentiment. Within the Auto & Vehicle Manufacturers industry, it is ranked #3 of 68 stocks.
To see additional POWR Ratings for Growth, Stability, and Momentum for STLA, click here.
Movado Group, Inc. (MOV)
MOV designs, sources, markets, and distributes watches worldwide. Watch, Accessory Brands, and Company Stores are the two operational segments. It offers watches under the Movado, Concord, Ebel, Olivia Burton, MVMT brands, and licensed brands, such as Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Calvin Klein, and Scuderia Ferrari.
During the fourth quarter ended January 31, 2022, MOV's net sales increased 15.5% year-over-year to $205.98 million. The operating income increased 47.6% from its prior-year quarter to $38.20 million, while its net income grew 3.7% from its year-ago value to $31.38 million. The company's EPS rose 3.1% year-over-year to $1.33.
The consensus EPS estimate of $0.46 for the first quarter ending April 2022 represents a 7% improvement year-over-year. Analysts expect MOV's revenue to increase 6.8% year-over-year to $144.00 million in the first quarter ending April 2022. Moreover, it has an impressive earnings surprise history, as it surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has declined 9% year-to-date and 3.9% over the past month.
MOV's strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. The stock also has an A grade for Quality and a B for Value. In the A-rated Fashion & Luxury industry, it is ranked #11 of 66 stocks.
In total, we rate MOV on eight different levels. Beyond what we've stated above, we have also given MOV grades for Growth, Momentum, Stability, and Sentiment. Get all the MOV ratings here.
Bluegreen Vacations Holding Corporation (BVH)
BVH functions as a vacation ownership company and also markets and sells vacation ownership interests (VOI); and manages resorts in leisure and urban destinations, including Orlando, Las Vegas, Myrtle Beach, Charleston, New Orleans, and others.
BVH's total revenue increased 34.2% year-over-year to $203.00 million for the fourth quarter. The net income grew 47.5% from its year-ago value to $13.13 million, while its adjusted EBITDA came in at $30.98 million representing a 73.2% increase year-over-year. The company's EPS rose 37% from its year-ago value to $0.63. The stock has plunged 12.8% year-to-date.
It is no surprise that BVH has an overall A rating, which equates to Strong Buy in our POWR Ratings system. BVH has an A grade for Value and Sentiment and a B grade for Growth. Among the 22 stocks in the Travel - Hotels/Resorts industry, it is ranked #1.
Click here to see the additional POWR Ratings for BVH (Stability, Quality, and Momentum).
STLA shares were unchanged in after-hours trading Monday. Year-to-date, STLA has declined -15.14%, versus a -3.71% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
3 Stocks in Oversold Territory: Movado, Stellantis, and Bluegreen Vacations StockNews.com
