With the consumer price index turning out favorable in October, a majority of Fed officials expect a slowdown in the pace of interest rate hikes from 0.75 percentage points to 0.50 percentage points in December.
Moreover, economists now believe the global economy might be able to avoid a recession, although it is slowing amid the macroeconomic issues. The stock market has been rejoicing on upbeat economic reports.
Furthermore, according to FactSet, over 69% of S&P 500 businesses exceeded profits per share projections, and 71% surpassed sales estimates for the 2022 third quarter. Moreover, stocks closed on a high note yesterday, ahead of the Thanksgiving holidays.
Given the backdrop, investors might add quality stocks Verizon Communications Inc. (VZ), América Móvil, S.A.B. de C.V. (AMX), Flowers Foods, Inc. (FLO), and Berry Corporation (BRY) to their watchlist for this week.
Verizon Communications Inc. (VZ)
VZ and its subsidiaries offer communications, technology, information, and entertainment products and services worldwide to consumers, businesses, and governmental entities. Its segments are Consumer and Business.
On November 15, 2022, VZ launched an advanced technology in its stores ahead of the holidays to give its customers an all-new exciting experience in tech shopping.
Vivek Gurumurthy, CIO and Senior Vice President, VZ Global Technology Solutions, Consumer, said, "We are equipped to serve customers by creating a seamless retail experience that is tailored to you and can be continued as an Omni experience in any other channel of choice."
VZ's operating revenues came in at $34.24 billion for the third quarter that ended September 30, 2022, up 4% year-over-year. Moreover, its wireless equipment revenues came in at $6.58 billion, up 22.8% year-over-year. Also, its total assets came in at $375.09 billion for the period ended September 30, 2022, compared to $366.60 billion for the period ended December 31, 2021.
VZ's revenue is expected to increase 2.5% year-over-year to $136.99 billion in 2022. Its EPS is expected to increase by 2.2% per annum for the next five years. It surpassed EPS estimates in three out of four trailing quarters. Over the past months, the stock has gained 10.9% to close the last trading session at $38.92.
VZ's strong fundamentals are reflected in its POWR Ratings. The stock's overall B rating indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
VZ has a B grade for Growth and Stability. In the Telecom - Domestic industry, it is ranked #3 out of 19 stocks. Click here for the additional POWR Ratings for Momentum, Sentiment, Value, and Quality for VZ.
América Móvil, S.A.B. de C.V. (AMX)
Based in Mexico, AMX provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including local, domestic, and international long-distance services, and network interconnection services.
On October 6, 2022, AMX and Liberty Latin America Ltd.'s (LILA) respective Chilean operations, VTR, and Claro Chile's joint venture got approved by the Chilean National Economic Prosecutor's Office. This is expected to be a step forward in AMX's business expansion.
AMX's total revenues came in at Mex$214.47 billion ($11.09 billion) for the third quarter that ended September 30, 2022, up marginally year-over-year. Its net income came in at Mex$17.97 billion ($930 billion), up 13.6% year-over-year. Moreover, its EPS came in at Mex$0.28, up 16.7% year-over-year.
Analysts expect AMX's revenue to increase 4% year-over-year to $43.88 billion in 2022. Its EPS is expected to increase 26.2% year-over-year to $1.35 in 2022. Over the past year, the stock has gained 17.9% to close the last trading session at $20.44.
AMX's overall A rating equates to a Strong Buy in our POWR Ratings system. It has a B grade for Stability, Quality, and Sentiment. The stock is ranked #5 out of 46 stocks in the A-rated Telecom – Foreign industry.
We've also rated AMX for Value, Momentum, and Growth. Get all AMX ratings here.
Flowers Foods, Inc. (FLO)
FLO produces and markets packaged bakery products in the United States. It offers fresh bread, buns, rolls, snack cakes, tortillas, frozen bread, and rolls under the Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley's, and Tastykake brand names.
On November 10, 2022, Ryals McMullian, FLO's President and CEO, said, "Flowers' record results in a challenging environment underscore the resiliency of our business and the ongoing effectiveness of our strategy."
FLO's sales came in at $1.16 billion for the third quarter that ended October 8, 2022, up 12.7% year-over-year. Its net income came in at $40.53 million, up 4.3% year-over-year. Moreover, its EPS came in at $0.19, up 5.6% year-over-year.
Street expects FLO's revenue to increase 11.2% year-over-year to $4.82 billion in 2022. Its EPS is expected to increase by 3.2% year-over-year to $1.28 in 2022. It surpassed EPS estimates in three of four trailing quarters. Over the past year, the stock has gained 10.2% to close the last trading session at $29.59.
FLO's overall B rating equates to a Buy in our POWR Ratings system. It has a B grade for Growth and Quality. The stock is ranked #9 of 82 in the B-rated Food Makers industry.
We've also rated FLO for Stability, Momentum, Sentiment, and Value. Get all FLO ratings here.
Berry Corporation (BRY)
BRY, an independent upstream energy company, develops and produces conventional oil reserves in the western United States. It operates in two segments, Development and Production and Well Servicing and Abandonment.
On November 2, 2022, Cary Baetz, BRY's Executive Vice President and CFO, said, "With our well-defined Shareholder Return Model, we expect to deliver top-tier returns of capital to our shareholders."
BRY's total revenues and other came in at $376.45 million for the third quarter that ended September 30, 2022, up 162.5% year-over-year. Its net income came in at $191.66 million, up 1848.6% year-over-year. Also, its EPS came in at $2.34, up 1850% year-over-year.
BRY's revenue is expected to increase by 46.9% year-over-year to $800.65 million in 2022. Its EPS is expected to grow 660% year-over-year to $1.9 in 2022. Over the past nine months, the stock has gained 13.1% to close the last trading session at $8.82.
BRY's overall A rating equates to a Strong Buy in our POWR Ratings system. It has an A grade for Value and Momentum and a B for Growth. It is ranked #7 out of 93 stocks in the B-rated Energy - Oil & Gas industry.
Beyond what is stated above, we've also rated BRY for Stability, Sentiment, and Quality. Get all BRY ratings here.
VZ shares were trading at $38.92 per share on Thursday afternoon, down $0.28 (-0.71%). Year-to-date, VZ has declined -21.00%, versus a -14.29% rise in the benchmark S&P 500 index during the same period.
About the Author: RashmiKumari
Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.
Verizon, Flowers Food, and 2 Other Stocks to Watch out for This Week StockNews.com
