The October Consumer Price Index (CPI) reflected a 7.7% increase over last year and a 0.4% increase over the prior month, according to the Bureau of Labor Statistics. This is below the Dow Jones estimate of 7.9% and 0.6%. However, even with the slowdown, inflation still remains well above the Fed’s 2% target.
On the other hand, analysts believe the economy could soon see a rebound as midterm elections have historically set up nice rallies of phenomenal consistency. “In midterm election years, you normally see a major bottom in the fourth quarter. The market is in a bottoming process now. It is hard to deny that. It could lead to a significant market rally,” said Paul Schatz, the founder and president of Heritage Capital.
Thus, it should be wise to buy fundamentally solid stocks, The Coca-Cola Company (KO), Biogen Inc. (BIIB), and Sisecam Resources LP (SIRE), to charge up your portfolio. These stocks could be ideal long-term investments.
The Coca-Cola Company (KO)
The global giant beverage company, KO, manufactures, markets, and sells various non-alcoholic beverages. The company provides sparkling soft drinks; flavored and enhanced water and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks.
It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators.
On September 29, Molson Coors Beverage Company (TAP) expanded its exclusive agreement with KO to develop and commercialize Topo Chico Spirited, a line of spirit-based, ready-to-drink cocktails inspired by the taste of some of America’s most loved tequila and vodka-based beverages. This should be strategically beneficial for KO.
KO’s $1.76 annual dividend yields 2.99% at its current share price. The company declared its latest quarterly dividend of $0.44, payable on December 15. Its dividend payouts have increased at a 3.1% CAGR over the past three years and a 3.6% CAGR over the past five years. The company has a record of 59 consecutive years of dividend growth.
KO’s non-GAAP net operating revenues increased 10% year-over-year to $ 11.06 billion for the fiscal third quarter that ended September 30, 2022. Its non-GAAP gross profit increased 6.5% year-over-year to $6.54 billion, while non-GAAP net income increased 6.7% year-over-year to $3.01 billion. In addition, its non-GAAP EPS came in at $0.69, representing a 6.2% increase from the prior-year quarter.
For the quarter ending December 2022, KO’s revenue is expected to increase by 3.5% year-over-year to $9.80 billion. Its EPS is expected to increase 1.2% year-over-year to $0.71 for the quarter ending June 2023. The company has an impressive earnings surprise history as it surpassed the consensus EPS estimates in all four trailing quarters.
Over the past year, the stock has gained 4% to close the last trading session at $58.77. It gained 7.8% over the past month.
KO’s POWR Ratings reflect its solid prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
The company also has a B grade for Stability, Sentiment, and Quality. Within the A-rated Beverages industry, KO is ranked #21 out of 34 stocks.
Click here to see the additional POWR Ratings of KO for Growth, Value, and Momentum.
Biogen Inc. (BIIB)
BIIB, a biotech company, discovers, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. It has strategic collaborations and license agreements with various companies, including Acorda Therapeutics, Inc.; Alkermes Pharma Ireland Limited; and Denali Therapeutics Inc.
During the fiscal third quarter ended September 30, 2022, BIIB’s total revenue came in at $2.51 billion. The company’s net income increased 256.8% from the year-ago value to $1.13 billion, while its EPS grew 253.2% from the prior-year quarter to $7.84. Moreover, its net cash provided by investing activities grew 815.8% year-over-year to $1.67 million.
BIIB’s EPS is expected to grow 2.2% in the fiscal quarter ending December 2022 to $3.46. Its revenue is expected to be $2.44 billion in the same quarter. The stock also surpassed the consensus EPS estimates in three of the trailing four quarters, which is commendable.
The stock has gained 50.5% over the past six months and 17.7% year-to-date to close the last trading session at 282.31.
It is no surprise that BIIB has an overall A rating, which equates to Strong Buy in our POWR Ratings system. The stock also has an A grade for Value and Quality and a B for Sentiment. It is ranked #5 out of 385 stocks in the Biotech industry.
To see additional POWR Ratings for Growth, Momentum, and Stability for BIIB, click here.
Sisecam Resources LP (SIRE)
SIRE engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products.
The company’s $2.15 annual dividend yields 9.19% at its current share price. Its dividend payouts have increased at a 10.7% CAGR over the past three years. Moreover, on October 28, SIRE’s BOD declared its quarterly cash distribution of $0.50 for the third quarter of 2022, which is payable on November 17, 2022. This reflects the company’s shareholder return ability.
For the fiscal third quarter of 2022 that ended September 30, SIRE’s net sales increased 40.5% year-over-year to $190.50 million. Its net income grew 101.9% from the prior-year period to $31.10 million, while the adjusted EBITDA attributable to SIRE rose 69.2% year-over-year to 20.30 million.
SIRE beat the consensus EPS estimates in three of the trailing four quarters. The stock has gained 25.1% over the past year and 41.8% year-to-date to close its last trading session at $22.
SIRE’s promising outlook is reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Sentiment and a B for Value, Stability, and Quality. Out of the 87 stocks in the B-rated Chemicals industry, SIRE is ranked #1.
Click here to see the additional POWR Ratings for SIRE (Momentum).
KO shares were trading at $60.06 per share on Thursday morning, up $1.29 (+2.19%). Year-to-date, KO has gained 3.70%, versus a -16.89% 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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