September began on a positive note as global stock markets scaled new highs. MSCI’s all-country world index climbed to its fourth intraday high in a row. Decelerating economic growth and rising COVID-19 cases have been offset by a solid vaccination drive and booster-shot approvals, continuing ultra-loose monetary policy, and substantial federal investments in vital sectors.

The benchmark S&P 500 and Nasdaq composite indexes hit their all-time highs on September 2, reflecting bullish market sentiment.

The benchmark S&P 500 index registered gains for the seventh straight month in August. Given this backdrop, we believe fundamentally sound stocks Wipro Limited (WIT), Turkcell Iletisim Hizmetleri A.S. (TKC), Amarin Corporation plc (AMRN), and Loma Negra Compañía Industrial Argentina S.A. ADR (LOMA), which are currently trading at less than $10, could be solid bets now.

Wipro Limited (WIT)

WIT is an  information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services; IT Products; and India State-Run Enterprise Services (ISRE). It is based in India.

On August 26, WIT announced a global strategic partnership with DataRobot, a leader in Augmented Intelligence. The partnership aims to help customers become AI-driven enterprises to  accelerate their business impact. In addition, the collaboration should strengthen WIT’s partner ecosystem in the dynamic Enterprise AI segment.

On August 24, WIT announced the opening of its new delivery center in Sherwood, Ark. This should improve its reach to customers and enhance its operational capabilities.

WIT’s revenue increased 22.4% year-over-year to ₹182.52 billion ($2.46 billion) in its fiscal second quarter, ended June 30. Its gross profit stood at ₹54.96 billion ($740 million), up 21% from the same period last year. Its profit for the period grew 34.3% from its  year-ago value to ₹32.38 billion ($436 million). The company’s EPS increased 40.8% year-over-year to ₹5.90 ($0.08).

A $10.09 billion consensus revenue estimate for the current year indicates a 20.9% increase year-over-year. The Street expects the company’s EPS to rise 11.5% from the prior year to $0.29 in the current  year. WIT has a notable earnings surprise history as well; it surpassed the Street’s EPS estimates in three out of the trailing four quarters.

Over the past year, WIT gained 119.9% in price to close yesterday’s trading session at $9.41. The stock has gained 66.6% year-to-date.

WIT’s strong fundamentals are reflected in its POWR Ratings. WIT has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

The stock has a grade of A for Stability, and B for Momentum, Sentiment, and Quality. In addition, it is ranked #5  of  12 stocks in the A-rated Outsourcing – Tech Services industry.

Click here to view additional WIT ratings for Growth and Value.

Turkcell Iletisim Hizmetleri A.S. (TKC)

TKC provides digital services in Turkey, Ukraine, Belarus, Azerbaijan, Cyprus, Germany, and the Netherlands. It offers voice, data, and video communication solutions to its individual and corporate customers, and broadband services. The company is headquartered in Istanbul, Turkey.

On July 7, TKC signed a share transfer agreement to acquire Boyut Grup Enerji, which owns the İzmir Karadağ Wind Power Plant. This move is in line with its target of meeting its electricity demand from renewables by 2030 and becoming a carbon-neutral company by 2050.

TKC’s revenues increased 23.5% year-over-year to TRY8.55 billion ($1.03 billion) in its fiscal second quarter, ended June 30. Its EBITDA grew 22.7% from its  year-ago value to TRY3.47 billion ($0.42 billion). Also, its EBIT came in at TRY1.72 billion ($0.21 billion), indicating a 25.5% rise year-over-year. The company’s net income increased 30.6% year-over-year to TRY1.11 billion ($0.13 billion).

The Street expects TKC’s revenues to rise 14.1% year-over-year to $4.63 billion in the next year. The $0.82 consensus EPS estimate for the next year indicates a 7% improvement year-over-year. Also,  its EPS is expected to grow 17.2% per annum over the next five years. TKC has gained 4% in price over the past month to close yesterday’s trading session at $4.71.

TKC has an overall B rating, which translates to Buy in our POWR Ratings system. In addition, the stock has a B grade for Value, Stability, and Quality. TKC is ranked #13  of  49 stocks in the B-rated Telecom – Foreign industry.

Get additional POWR Ratings for Growth, Sentiment, and Momentum, here.

Amarin Corporation plc (AMRN)

AMRN is a  pharmaceutical company that  develops and commercializes therapeutics to treat cardiovascular diseases in the United States. It is based in Dublin, Ireland.

On August 31, AMRN reported the inclusion of its product, VAZKEPA, in the European Society of Cardiology (ESC)’s 2021 Guidelines on cardiovascular disease prevention in clinical practice as a new recommendation to address high-risk cardiovascular patients. “The expanding inclusion of VASCEPA/VAZKEPA in global clinical practice guidelines further validates the important role our IPE plays in addressing cardiovascular risk. This new inclusion in the ESC guidelines is particularly timely as we are planning our initial country launch in Europe in September,” said Mr. Mikhail, AMRN’s president and chief executive officer.

AMRN’s net product revenues increased 15% year-over-year to $153.77 million in its fiscal second quarter, ended June 30. Its operating income grew 111.1% from its  year-ago value to $8.77 million, while its net income improved 76.9% year-over-year to $7.81 million. The company’s EPS increased 100% year-over-year to $0.02.

Analysts expect AMRN’s revenues to increase 3.7% year-over-year to $636.52 million in the current year. Its EPS is expected to rise 20% year-over-year in the same period. In addition, AMRN beat the consensus EPS estimates in three of the trailing four quarters.

AMRN has gained 18.4% in price over the past year and 4.5% over the past month to close yesterday’s trading session at $5.15.

It is no surprise that AMRN has an overall rating of B, which equates to Buy in our proprietary POWR Ratings system. The stock also has a B grade for Sentiment, Value, and Quality. Among 217 stocks in the Medical – Pharmaceuticals industry, AMRN is ranked #33.

To see additional AMRN ratings for Growth, Stability, and Momentum, click here.

Click here to checkout our Healthcare Sector Report for 2021

Loma Negra Compañía Industrial Argentina S.A. ADR (LOMA)

Based in Argentina, LOMA manufactures and sells cement and its derivatives. The company operates through Cement, Masonry Cement and Lime; Concrete; Rail Services; Aggregates; and Others segments.

For the second quarter, ended June 30, LOMA’s net revenue increased 46.6% year-over-year to Ps.14.27 billion ($147 million). Its adjusted EBITDA improved 74.1% year-over-year to Ps.4.35 billion ($48 million) over the period, while its adjusted EBITDA margin expanded 483 basis points year-over-year to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage.

The Street’s $61.02 billion revenue estimate for the current year indicates a 13,687.7% improvement from the last year. In addition, analysts expect the company’s EPS to come in at $75.61 in the current year, indicating a 7,386.1% rise year-over-year.

LOMA has gained 50.6% in price over the past year. The stock has gained 39.3% over the past six months to close yesterday’s trading session at $7.44.

The company has an overall B rating, translating to Buy in our proprietary rating system. LOMA also has a B grade for Quality. Of  54 stocks in the B-rated Industrial – Building Materials industry, LOMA is ranked #20.

Beyond what we’ve stated above, we have also rated LOMA for Growth, Value, Momentum, Sentiment, and Stability. Click here to view all LOMA ratings.

Click here to check out our Industrial Sector Report for 2021

WIT shares rose $0.12 (+1.28%) in premarket trading Thursday. Year-to-date, WIT has gained 69.16%, versus a 21.33% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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