Also, throughout the longer term, I expect treasury yields to drop as inflation fears become less pronounced and the Fed cuts ratesĪlso noteworthy is that on Aug. Since California is a leader in the EV space, I believe that PCG is especially well-positioned to benefit from the EV trend. Moreover, throughout the longer term with electric vehicles proliferating, I expect electric utilities’ profit growth to accelerate. Portfolio manager Bobby Edemeka expects the profits and dividends of utilities to climb about 5% annually. Its shares sank 18% between July 11 and Oct. Californian electric utility PG&E (NYSE: PCG ) has not been spared from this trend. Utility stocks have dropped meaningfully this year as the sector, largely known for its dividends, has been upended by the rising yields of treasuries. The shares have dropped 8.7% in the last month. PRMW has an attractive forward price-earnings ratio of 14.5. Its adjusted net income rose by $5.5 million to $38.8 million. Its EBITDA, excluding certain items, jumped 13% year-over-year to $121.6 million. Moreover, Primo reported strong second-quarter results. these include water and coffee without milk or sugar. They are also considered likely to enable many overweight people to stop drinking high-calorie beverages and switch to low-calorie options. That’s because those drugs suppress appetite. Since the vast majority of the company’s offerings are beverages with few or no calories, the firm is well-positioned to benefit from the new weight-loss drugs. Source: Sambulov Yevgeniy/Ī supplier of “pure-play water solutions,” Primo Water (NYSE: PRMW) provides bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, mineral water, sparkling and flavored water, filtration equipment and coffee. Finally, because of the electrification of transportation, I view electric utilities as attractive staples stocks with “a growth kicker.” With that said, here are three top-notch, beaten-down staples stocks to buy now. Therefore, the stocks that I selected for this column meet that criteria.Īdditionally, while I believe that the impact of the new weight-loss drugs is being exaggerated by many, I think that it’s prudent to avoid staples stocks that could be extensively, negatively affected by these new treatments. I believe that investors should look for staples names that are trading with P/E ratios of 15 or below. For example, Clorox (NYSE: CLX) has an elevated forward price-earnings ratio of 21.5, while Coca-Cola’s (NYSE: KO ) forward P/E ratio of 18.75 is also rather high, given its status as a staples company. Despite the recent retreat of many staples stocks, some equities in the category remain way too expensive. These stocks have done so amid overdone fears about a recession. As I’ve noted in the past, many staples stocks have attained valuations that I consider to be far too high for any name in this category.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |