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Summary
- The US Census Bureau released the retail sales data for June, in which sales increase was lower than expected.
- Microchip Technology reported a total revenue of US$2.23 billion in the March 2023 quarter and has a P/E ratio of 22.95x based on its closing price of US$93.84 on July 18, 2023.
- Albermarle Corp reported a 129% increase in net sales for the first quarter of 2023 and has P/E ratio of 7.62x based on Tuesday’s closing price of US$237.03.
With the latest CPI data suggesting that prices are on track to cool down, fears of inflation linger in the backdrop leaving experts to deliberate over its upcoming path. The June retail sales data released by US Census Bureau suggests that sales increase was lower than expected, possibly indicating the impact of inflationary fears.
However, some companies have seen increasing revenue over the past year and have consistently reported financial growth. This article covered two such stocks that can be examined by investors in the current climate:
Microchip Technology Inc. (NASDAQ:MCHP)
Microchip generates revenue from its lower-end 8-bit MCUs that are used in less technologically advanced devices. These MCUs are useful in remote controls, garage door openers and power windows.
Microchip reported a total revenue of US$2.23 billion in the March 2023 quarter. Meanwhile, the gross profit was US$1.51 billion, and the operating income was US$850 million for the March 2023 quarter. The net income to common stockholders was US$604 million.
The company also reported record net sales of US$2.23 billion, which was 2.9% higher as compared to the previous year. The company also declared a quarterly dividend of 38.3 cents per share for the June quarter, marking an increase of 38.8% from the previous corresponding period.
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MCHP has a P/E ratio of 22.95x based on its closing price of US$93.84 on July 18, 2023. Tuesday’s closing price marked a monthly jump of 7.95% and a YTD increase of 30.93%.
Albermarle Corp (NYSE:ALB)
With a market cap of over US$27 billion, Albermarle is one of the largest players in the lithium production segment. The company also produces bromine, which is useful in making flame retardants.
The lithium producer reported a 129% increase in net sales for the first quarter of 2023. The net income for the quarter was US$1.2 billion, which was 389% higher than the previous corresponding period. Additionally, the EBITDA for the period was US$1.6 billion, compared to US$431.9 million.
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ALB has a P/E ratio of 7.62x based on Tuesday’s closing price of US$237.03. The stock gained 2.45% over the month leading up to July 18, 2023.
