The stock market has been under pressure amid soaring prices and widespread recession fears. According to Sound View Wealth Advisors’ Melissa Bouchillon, “As we look to the second half of the year, I would expect more volatility. I don’t think the worst is behind us.”
However, the S&P 500 has gained 5.1% over the past five days, while investors with a bearish outlook for stocks plunged to an eight-week low. Moreover, according to FactSet, 73% of S&P 500 companies defied odds and surpassed second-quarter profit expectations set by Wall Street analysts.
Given the uncertain market conditions, it could be wise to invest in quality stocks Coty Inc. (COTY), AMN Healthcare Services, Inc. (AMN), and Franklin Covey Co. (FC), which were recently upgraded in our proprietary POWR Ratings system.
Coty Inc. (COTY)
COTY and its subsidiaries manufacture, market, distribute, and sell beauty products worldwide. The company provides prestige fragrances, skincare, and color cosmetics products through prestige retailers.
On May 9, 2022, Sue Y. Nabi, COTY’s CEO, said, “We have continued the premiumization of our portfolios in both Prestige and Consumer Beauty, to implement price increases as a means of retaining talent and protecting margins, while also maintaining the necessary flexibility in our supply chain.”
COTY’s net revenues increased 15.4% year-over-year to $1.19 billion in the third quarter ended March 31, 2022. Its net income came in at $50.30 million, compared to a loss of $18.50 million in the prior-year period. Also, its EPS came in at $0.06, compared to a loss per share of $0.02 in the year-ago period.
For 2022, analysts expect COTY’s revenue to grow 13.9% year-over-year to $5.27 billion. Its EPS is estimated to increase 2,700% year-over-year to $0.28 in 2022. It surpassed the Street EPS estimates in three of the trailing four quarters. Over the past month, the stock has lost 5.7% to close the last trading session at $7.33.
COTY has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
In addition, it has a B grade for Growth, Value, and Quality. COTY is ranked #15 out of 67 stocks in the B-rated Fashion & Luxury industry. Click here to see the additional POWR Ratings for COTY (Momentum, Stability, and Sentiment).
AMN Healthcare Services, Inc. (AMN)
AMN provides healthcare workforce solutions and staffing services to hospitals and healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions; Physician and Leadership Solutions; and Technology and Workforce Solutions.
On June 15, 2022, AMN declared an additional $250 million under the company’s repurchase program for its common stock. This buyback is expected to fortify AMN’s shareholders’ value in the near term.
In addition, on May 16, 2022, AMN acquired an international nurse and allied recruitment company, Connetics USA. Through this acquisition, AMN aims to improve acute labor shortage issues concerning healthcare services in the U.S.
AMN’s revenue increased 75.2% year-over-year to $1.55 billion for the first quarter that ended March 31, 2022. Its adjusted net income came in at $164.61 million, up 101.7% year-over-year. Moreover, its adjusted EPS came in at $3.49, up 105.3% year-over-year.
Analysts expect AMN’s revenue to be $4.98 billion in 2022, representing a 25% year-over-year rise. In addition, the company’s EPS is expected to increase 30% year-over-year to $10.44 in 2022. Also, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 14.4% to close the last trading session at $115.07.
AMN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.
In addition, it has an A grade for Growth and a B for Value and Quality. AMN is ranked #5 out of 83 stocks in the Medical – Services industry. Click here to see the additional POWR Ratings for AMN (Momentum, Stability, and Sentiment).
Franklin Covey Co. (FC)
FC provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three segments: Direct Offices; International Licensees; and Education Practice.
On June 29, 2022, Paul Walker, President, and CEO, said, “The combination of the large and growing markets we serve, the importance of the challenges we help our clients address, and the strength of our subscription business model create a number of exciting global growth opportunities.”
FC’s net sales increased 12.7% year-over-year to $66.18 million for its third quarter ended May 31, 2022. Its gross profit came in at $51.13 million, up 11.4% year-over-year. Furthermore, its adjusted EBITDA came in at $10.88 million, up 27% year-over-year.
For 2022, analysts expect FC’s revenue to increase 15% year-over-year to $257.87 million. Its EPS is expected to increase 21.9% year-over-year to $1.17 in 2022. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 42.5% to close the last trading session at $52.15.
FC’s overall B rating indicates a Buy in our proprietary rating system. The stock has an A grade for Growth, Sentiment, and Quality.
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COTY shares were trading at $7.42 per share on Tuesday morning, up $0.09 (+1.23%). Year-to-date, COTY has declined -29.33%, versus a -13.02% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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