The major stock market indexes have suffered a massive correction lately, with S&P 500 down more than 20% from its peak in January. Geopolitical uncertainties, rising oil prices, worsening supply chain disruptions, and the Fed’s intention to combat surging inflation by raising interest rates several times this year have rattled the stock market.
Furthermore, the increasing odds of the U.S. economy slipping into a recession have also perplexed investors. Last week, Wells Fargo CEO and president Charlie Scharf said it would be difficult for the U.S. to avoid “some kind of recession.”
So, amid current market uncertainty, we think it could be wise to scoop the shares of fundamentally sound companies LiveRamp Holdings, Inc. (RAMP) and Herbalife Nutrition Ltd. (HLF), which are down more than 45% year-to-date. These stocks could rebound in the coming months based on their solid growth attributes. They are rated Buy in our proprietary POWR Ratings System.
LiveRamp Holdings, Inc. (RAMP)
Headquartered in San Francisco, RAMP, a technology company, offers enterprise data connectivity platform solutions in the United States, Europe, and Asia-Pacific. The company offers RampID, a true people-based identifier.
In February, RAMP announced that Adobe Advertising Cloud now supports RampID™ across channels, including desktop display, desktop video, mobile web, mobile in-app, connected TV (CTV), native, and audio. Advertisers can unlock people-based audience targeting, frequency capping, first- and third-party data activation, delivery reporting, supply-side integrations, exposure logs, and measurement support through Adobe’s Advertising Solutions Group (ASG).
For the fourth quarter, ending March 31, 2022, RAMP’s revenues increased 18.9% year-over-year to $141.73 million. Its gross profit improved 25.3% from its year-ago value to $102.25 million, while its non-GAAP operating income amounted to $1.00 million. The company’s cash and cash equivalent increased 4.8% year-over-year to $600.16 for its fiscal year ending March 31, 2022.
Analysts expect RAMP’s revenue to increase 16.9% year-over-year to $139.15 million for the first quarter, ending June 30, 2022. The $0.24 consensus EPS estimate for the same period, represents a 72.3% improvement year-over-year. The stock has plunged 46.9% in price year-to-date.
RAMP’s POWR Ratings reflect this promising outlook. The company has an overall B rating , which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
The stock also has a B grade for Value and Growth. Within the C-rated Technology – Services Industry, it is ranked #20 of 81 stocks.
To see additional POWR Ratings for Quality, Sentiment, Stability, and Momentum for RAMP, click here.
Herbalife Nutrition Ltd. (HLF)
HLF provides nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company offers products in weight management, targeted nutrition, energy, sports and fitness, and outer nutrition. The company is headquartered in Los Angeles, California.
In the first quarter, ending March 31, 2022, HLF’s worldwide net sales amounted to $1.34 billion. Its operating income came in at $153.10 million, while its adjusted net income was $101.00 million. The company’s adjusted EPS stood at $0.99.
The $0.98 consensus EPS estimate for the fourth quarter ending Dec. 31, 2022, represents a 71.4% improvement year-over-year. Analysts expect HLF’s revenue to increase 1.1% year-over-year to $1.33 billion for the same period. In addition, the company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has declined 48.6% year-to-date.
HLF’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. HLF also has an A grade for Quality and Value. Within the A-rated Medical – Consumer Goods industry, it is ranked #3 of 8 stocks.
In total, we rate HLF on eight distinct levels. Beyond what we have stated above, we have also given HLF grades for Stability, Sentiment, Growth, and Momentum. Get all the HLF ratings here.
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RAMP shares were trading at $26.32 per share on Thursday afternoon, up $0.87 (+3.42%). Year-to-date, RAMP has declined -45.11%, versus a -14.24% 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. More...
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