The macroeconomic headwinds have induced significant volatility in the stock market this year, as is evident from the CBOE Volatility Index’s 31% year-to-date gains. JPMorgan Chief, Jamie Dimon, said, “The potential outcome (for the U.S. economy) is kind of unknown.” However, he added, “If we are lucky, we will have a soft landing or a mild recession, and I do think that’s possible.”
Moreover, Federal Reserve Governor Christopher Waller believes reducing rate hike aggression is a reasonable possibility for the upcoming federal meet, which could bode well for the market. In addition, CNBC’s Jim Cramer believes that the S&P 500 will rally in December.
AT&T Inc. (T)
T provides telecommunications, media, and tech services worldwide. Its segments are Communications and Latin America.
On October 20, 2022, John Stankey, T’s CEO, said, “We remain confident in our ability to achieve, or surpass, all our financial commitments for the year, while still investing to bring our customers the industry’s best services.”
For the third quarter that ended September 30, 2022, T’s equipment revenue came in at $5.31 billion, up 4.6% year-over-year. Its Fiber Broadband additions came in at 338,000, up 17% year-over-year. Moreover, its net income increased marginally year-over-year to $5.98 billion, while its adjusted EPS came in at $0.68, up 3% year-over-year.
In terms of forward EV/EBITDA, T’s 7.44x is 10.6% lower than the industry average of 8.31x. Its forward Price/Sales of 1.08x is 12.6% lower than the industry average of 1.24x.
T’s revenue and EPS are estimated to be $128.73 billion and $2.67, respectively, for 2022. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 10.2% to close the last trading session at $18.84.
T’s POWR Ratings reflect its promising outlook. It has an overall B rating representing a Buy in our POWR Rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
T has a B grade for Value and Quality. It is ranked #4 out of 19 stocks in the Telecom – Domestic industry. Click here to see the additional POWR Ratings for T (Growth, Momentum, Stability, Sentiment).
Berry Corporation (BRY)
Independent upstream energy company BRY 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 adjusted net income came in at $45.52 million, up 294.5% year-over-year. Also, its adjusted EPS came in at $0.55, up 292.9% year-over-year.
BRY’s forward EV/Sales of 1.18x is 39.9% lower than the industry average of 1.96x, and its forward Price/Sales of 0.77x is 46.6% lower than the industry average of 1.43x.
Street expects BRY’s revenue to increase 42.3% year-over-year to $775.70 million in 2022. Its EPS is expected to rise 668% year-over-year to $1.92 in 2022. The stock has gained 10.6% year-to-date to close the last trading session at $8.27.
BRY has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Value and Momentum and a B grade for Growth.
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T shares were trading at $18.96 per share on Tuesday morning, up $0.12 (+0.64%). Year-to-date, T has gained 9.01%, versus a -15.65% 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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