Cryptocurrency has been one of the top investing stories of the year, with prices of cryptos soaring as more investors are jumping to the fray. Dogecoin especially has become quite popular as of late.
Dogecoin was initially created in 2013 as a joke and has since exploded in popularity and price after influential billionaires such as Elon Musk and Mark Cuban have been supporting it. In addition, Dogecoin is rising due to excitement on Reddit and Twitter (TWTR). While many young cryptocurrency investors have made fortunes in Dogecoin, they are likely to get burnt at some point. That’s because not only is there hardly any real-world use of Dogecoin but there is an unlimited supply.
Therefore, investors should instead put their money into shares of fundamentally solid growing companies whose prices are appreciated by actual underlying growth catalysts. That’s why I am highlighting stocks such as Bristol-Myers Squibb Company (BMY), AutoNation, Inc. (AN), and Archer-Daniels-Midland Company (ADM) below.
Bristol-Myers Squibb Company (BMY)
BMY is one of the leading specialty biopharmaceutical companies in the world. It discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, oncology, and immune disorders. A key focus for BMY is immuno-oncology, where the company is leading in drug development.
The company completed its acquisition of Celgene Corp. in late 2019. That acquisition added multiple myeloma drug, Revlimid, to BMY’s portfolio. Revlimid, an oral immunomodulatory drug, which is approved for several indications, is driving revenue growth. BMY sees market share gains in crucial markets with longer treatment duration, helping to drive sales.
The company’s immuno-oncology drug, Opdivo, which has received approval for several cancer indications, is also helping to drive growth. Approvals of new drugs also bode well for the company. Inrebic was approved for the treatment of adult patients with intermediate-2 or high-risk primary or secondary myelofibrosis. Plus, the FDA and European approval of Zeposia for the treatment of adults with relapsing forms of multiple sclerosis is also a long-term growth driver.
BMY has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The company has a Growth Grade of B, which isn’t surprising as Wall Street analysts forecast 17.8% year over year earnings growth in the current quarter. BMY also has a Quality Grade of B due to a solid balance sheet with $27 billion in cash as of the end of March.
We also grade BMY based on Value, Momentum, Stability, and Sentiment. You can find those grades here. BMY is ranked #9 in the Medical – Pharmaceuticals industry. You can find other top stocks in the industry here.
AutoNation, Inc. (AN)
AN is the largest automotive dealer in the United States, with approximately 230 dealerships. The company also has five AutoNation USA used-vehicle stores and 74 collision centers across 16 states, primarily in the Sunbelt metro areas. The company offers vehicle maintenance and repair services and arranges financing for vehicle purchases through third-party sources.
AN has initiated aggressive store expansion efforts along with a brand extension strategy. The company plans to build over 130 stand-alone pre-owned vehicle stores by the end of 2026, with five new stores slated to open this year. The expansion should help increase revenues. AN’s impending buyout of 11 stores and a collision center from Peacock Automotive Group should expand the company’s portfolio.
The company’s enhanced digital solutions have helped to boost profitability and its market presence. Ordering options such as ship-to-home next day, curbside pick-up option, and buy online, pick-up in stores is driving more traffic to AN’s website and should increase sales over the long run. Its digital platform, AutoNation Express, should also aid long-term growth.
AN has an overall grade of A, which is a Strong Buy rating in the POWR Ratings system. The company has a Value Grade of A as the stock appears quite undervalued based on both trailing P/E (10.87) and forward P/E (11.43). It also has a Momentum Grade of B, as its stock has shown a bullish trend since November. To access the rest of AN’s grades (Growth, Stability, Sentiment, and Quality), click here.
AN is ranked #3 in the B-rated Auto Dealers & Rentals industry. There are other great stocks in this industry, which can be found here.
Archer-Daniels-Midland Company (ADM)
ADM is one of the leading producers of food and beverage ingredients. It is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company also owns an extensive network of logistical assets to store and transport crops around the globe.
ADM had strong Q1 results. It reported the sixth straight quarter of adjusted operating profit growth. Its revenue rose 26.2% year over year to $18.9 billion, driven by strength across all segments. Management is also optimistic for 2021 as it expects continued year-over-year growth across all segments for the year.
ADM is especially gaining from solid demand in its Nutrition segment. In the first quarter, sales grew 35.5% year over year. ADM also sees robust demand for beverages, probiotics, and fibers. Plus, animal nutrition products should see a strong recovery this quarter as restrictions have eased over the past couple of months.
ADM has an overall grade of A, translating into a Strong Buy rating in our POWR Ratings system. The company has a Growth Grade of B, driven by a forecast for 24.8% earnings growth this year. ADM also has a Sentiment Grade of A, which means the “Smart Crowd” really likes the stock. For instance, eleven out of fourteen analysts rate the stock a Strong Buy or Buy.
We also provide grades for Value, Momentum, Stability, and Quality, which you can find here. ADM is ranked #3 in the Agriculture industry. You can find other top stocks in this industry by clicking here.
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BMY shares were trading at $65.16 per share on Thursday afternoon, up $0.63 (+0.98%). Year-to-date, BMY has gained 5.87%, versus a 10.21% rise in the benchmark S&P 500 index during the same period.
About the Author: David Cohne
David Cohne has 20 years of experience as an investment analyst and writer. He is the Chief Value Strategist for StockNews.com and the editor of POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers. More...
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