EAR to DOV: US stocks to explore as FDA paves way for OTC hearing aids

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EAR to DOV: US stocks to explore as FDA paves way for OTC hearing aids

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 EAR to DOV: US stocks to explore as FDA paves way for OTC hearing aids
Image source: © Vladacanon | Megapixl.com

Highlights:

  • Eargo Inc. (NASDAQ: EAR) reported a Q2 2022 net revenue of US$ 7.2 million.
  • Knowles Corporation (NYSE: KN) has a market capitalization of US$ 1.6 billion.
  • Spectrum Brands Holdings, Inc. (NYSE: SPB) Q3 2022 net sales of US$ 818 million. 

As the US Food and Drug Administration (FDA) has made hearing aids easily accessible by making them available over-the-counter (OTC), users will now have them at more affordable prices.

The move could foster innovation and competition in the hearing aid technology space. The FDA approval can also impact companies manufacturing hearing aids.

Amid all these developments, we explore five hearing-aid stocks picked by Kalkine Media®:

Eargo Inc. (NASDAQ: EAR)

Eargo is a US hearing aid manufacturer offering support services to people with hearing impairment and other insurance-related products. Its products include Eargo Neo HiFi, Eargo Max, Eargo Neo, and other accessories.

The California-based company, Eargo, has a market cap of US$ 79. 6 million.

Shares of Eargo closed 54.95 per cent higher at US$ 3.13 per share on August 17. The EAR stock has surged by over 149 per cent in the past month.

In Q2 2022, Eargo reported total assets of US$ 150.01 million and posted net revenue of US$ 7.2 million, relatively lower than US$ 22.9 million in the same quarter of the previous year.

One of the Q2 results highlights was that Eargo reached a civil settlement agreement with the US Government to settle a Department of Justice investigation with no admission of liability.

Knowles Corporation (NYSE: KN)

Knowles Corporation provides audio processing and precision device solutions. The company caters to the needs of the mobile consumer segments, med-tech, defense, and other markets. Meanwhile, the company's market capitalization is US$ 1. 6 billion.

Knowles reported its Q2 2022 results and restructuring program on August 2, 2022. The restructuring program is aimed at bolstering the company's mid-term financial target.

Knowles posted a revenue of US$ 188 million in Q2 FY22. In the year-ago quarter, it was US$ 199.8 million.

Its Q2 2022 gross profit was US$ 77.7 million, while it was US$ 83.7 million in Q2 2021. KN stock tumbled close to 15 per cent year-over-year. Over the past month, it declined by over five per cent.

The KN stock's Relative Strength Index value was 43.02 as of August 17, 2022, as per Refinitiv data.

EAR to DOV: US stocks to explore as FDA paves way for OTC hearing aidsSource: ©Kalkine Media®; © Canva via Canva.com

Spectrum Brands Holdings, Inc. (NYSE: SPB)

Spectrum Brands is a US consumer product company that deals in a slew of items ranging from consumer batteries to residential hardware products to personal grooming items.

The US$ 2.9 billion market cap company, Spectrum Brands paid a quarterly dividend of US$ 0.42. Meanwhile, the company's price-to-earnings (P/E) ratio was 27.19 as of August 17, 2022.

The SPB stock plummeted close to 32 per cent year-to-date (YTD). However, it has seen an increase of 4.16 per cent over the past month.

Spectrum released its third-quarter results for fiscal 2022 on August 12, reporting net sales of US$ 818 million compared to US$ 743.8 million in the same period a year ago. The operating income in Q3 2022 was US$ 38.7 million, relatively higher than US$ 29.9 million in the year-ago quarter.

SPB stock had an RSI value of 42.89 according to Refinitiv as of August 17, 2022.

Energizer Holdings, Inc. (NYSE: ENR)

Energizer Holdings is a US company and a global market leading manufacturer of batteries, headquartered in St. Louis, Missouri.

Energizer has a market cap of US$ 2.28 billion, and it paid a quarterly dividend of US$ 0.30. The ENR stock decreased by over 21 per cent year-to-date (YTD). However, the stock jumped by 13.14 per cent over the past month.

Energizer Holdings released its third quarter results of fiscal 2022 on August 8, 2022. The company's net sales amounted to US$ 728 million and a 3.8 per cent organic growth for the reported quarter. Its earnings-per-share (EPS) in the third quarter of 2022 was US$ 0.73, and adjusted earnings per share were US$ 0.77, up four per cent from the year-ago quarter.

Dover Corporation (NYSE: DOV)

Dover is an industrial manufacturing company dealing with various products and services, including FMCG. The company operates mostly in the US.

Dover has an earnings-per-share (EPS) of US$ 7.86 and its price-to-earnings ratio (EPS) as of August 17, 2022, was 17.78. It paid a quarterly dividend of US$ 0.505.

Dover reported a revenue of US$ 2.158 billion in the second quarter of fiscal 2022, compared to US$ 2.031 billion in the quarter ended June 30, 2021.

Its GAAP net earnings of US$ 290 million in Q2 2022 was a nine per cent jump from the year-ago quarter.

DOV stock fell below 18 per cent on a yearly basis. In 2022, the stock plunged close to 21 per cent.

Bottom line:

The FDA ruling might impact stocks of companies making hearing aid equipment. However, investing in stocks requires in-depth knowledge and analysis. It is prudent of investors to do their math before picking stocks to invest in.

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