Kalkine Media lists five stocks to watch in a bearish market

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Kalkine Media lists five stocks to watch in a bearish market

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 Kalkine Media lists five stocks to watch in a bearish market
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Highlights:

  • Lumen Technologies, Inc. (NYSE: LUMN) hit its 52-week low on September 27 this year.
  • Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) stock rose 17 per cent YoY.
  • Coca-Cola Company (NYSE: KO) revenue jumped 12 per cent YoY in Q2 FY22.

Investors are looking for direction amid the bearish sentiment in the market, which has wiped off much of the gains the market had attained last year.

Meanwhile, Devon Energy Corporation (NYSE: DVN), Lumen Technologies, Inc. (NYSE: LUMN), T-Mobile US, Inc. (NASDAQ: TMUS), Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN), and Coca-Cola Company (NYSE: KO), are among the stocks that seem to have gained traction in the market, due to their operating model and their notable positions in their respective sectors.

The year 2022 hasn't been great for Wall Street traders and global investors in the wake of several macroeconomic headwinds. Meanwhile, the rising costs, policy rate jumps, and other uncertainties seem to have left the investors in the cold.

The S&P 500 index, one of the major indexes closely watched by investors as a measure of the overall equity market's health, marked its worst first-half performance this year in decades. At the same time, the tech-savvy Nasdaq index also witnessed a similar picture in recent months.

This week, the S&P 500 fell to its lowest level in about two years while Dow Jones tumbled to its 2022 low on worries over economic slowdown and a potential recession.

Meanwhile, all the benchmark indices are either present or flirting near the bear market bay, raising investors' concerns.

So, let's take a look at the recent developments and other details about the stocks mentioned above amid the bearish sentiment in the market:

Devon Energy Corporation (NYSE: DVN)

Devon Energy is a hydrocarbon exploration company with a dividend yield of 1.3 per cent. The US$ 38.14 billion market cap independent oil and gas company had a P/E ratio of 7.4.

The energy stocks appear to have performed relatively better than the other sector due to the soaring commodity prices boosted by the Russia-Ukraine turmoil. Meanwhile, the energy company's stock rose around 33 per cent YTD, adding about 69 per cent YoY and six per cent QTD.

The Oklahoma City-based oil and gas company said it would announce its Q3 FY22 earnings results on Tuesday, November 1.

In Q2 FY22, Devon Energy's total revenue totalled US$ 5.62 billion, a notable jump from US$ 2.41 billion in the year-ago quarter. The hydrocarbon exploration firm's net earnings were US$ 1.93 billion in Q2 FY22, a significant rise from US$ 261 million in Q2 FY21.

Lumen Technologies, Inc. (NYSE: LUMN)

Lumen Technologies is an enterprise technology platform operator with a dividend yield of 12.97 per cent. With a P/E ratio of four, the company offers a range of telecommunications services like cloud solutions, voice services, and other related solutions.

The stock of the communication services provider declined over 38 per cent YTD and 40 per cent YoY. In the running quarter through September 28, it lost about 40 per cent. Meanwhile, the stock had touched its 52-week low of US$ 7.57 on September 27, 2022, and at the time of writing, its price was up about 2.5 per cent from that low.

The US$ 8.02 billion market cap company's revenue was US$ 4.61 billion in Q2 FY22, compared to US$ 4.92 billion in the year-ago quarter. Lumen Technologies' net earnings were US$ 344 million in the fiscal 2022 second quarter, compared to US$ 506 million in Q2 FY21.

T-Mobile US, Inc. (NASDAQ: TMUS)

T-Mobile US is a leading telecommunication firm with a P/E ratio of 99.24. The wireless network operator had a market cap of US$ 170.90 billion, and its stock touched its 52-week high of US$ 148.04 on August 26 this year.

The stock of T-Mobile US rose 17 per cent YTD and seven per cent YoY. Its price was near the flatline in the current quarter through September 28.

The revenue of the telecommunication services firm was US$ 19.70 billion, a YoY decline of 1.2 per cent. The latest quarter net loss of the Bellevue, Washington-based wireless network operator was US$ 108 million, against an income of US$ 978 million in Q2 FY21.

Regeneron Pharmaceuticals (REGN) Q2 FY22 earnings highlightsSource: ©Kalkine Media®; © Canva Creative Studio via Canva.com

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN)

Regeneron Pharmaceuticals is a leading healthcare firm with a P/E ratio of 14.13. The US$ 77.36 billion market cap company is based out of Tarrytown, New York.

The stock price of REGN shot up 12 per cent YTD and 17 per cent YoY. Its price was up over 20 per cent in the third quarter through September 28 while touching its 52-week high of US$ 754.67 on September 9, 2022.

The New York-based biotechnology company's revenue fell 44 per cent YY to US$ 2.86 billion in Q2 FY22. Regeneron Pharmaceuticals' net income plunged 73 per cent YoY to US$ 852 million in the latest quarter.

Coca-Cola Company (NYSE: KO)

Coca-Cola is one of the leading beverage firms with a dividend yield of 3.04 per cent. The company, with a P/E ratio of 25.67, has operations in several international markets.

The US$ 245.81 billion market cap stock rose 12 per cent YTD and 17 per cent YoY. On a QTD basis through September 28, KO stock's price surged 20 per cent.

The Atlanta, Georgia-based beverage company's revenue grew 12 per cent YoY to US$ 11.3 billion in the latest quarter. The Coca-Cola Company's diluted EPS was US$ 0.44 in Q2 FY22 versus US$ 0.61 in Q2 FY21.

Bottom line

It has been daunting for investors so far in 2022, with high volatility in the market. The pace at which it is going down has left investors worried. In addition, the unpredictability of the future momentum and the absence of any positive catalyst have made the investors skeptical.

Some investors consider the bearish or correction period an ideal time, especially for traders with long-term goals. The prices of several premium stocks come down during this period, creating opportunities for investors to explore the stocks at a lower price.

But, given the highly volatile condition and other global economic headwinds, investors should do thorough research before making a bet.

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