Five Hot Value Stocks To Explore As Economy Reopens

Summary

• Viatris’ revenue from new product sales topped US$163 million in Q1.
• J&J collected US$6.1 billion in net earnings, up 6.9% YoY.
• Axalta’s sales rose 1% YoY to US$1.0 billion in the March quarter.

Value stocks offer buyers an opportunity to acquire shares of companies at a low price since they are often undervalued despite having a solid financial track record.

Furthermore, value stocks are typically tied to a country’s economic health, and as such, their progress is dependent on the growth of the economy.

Here are three growth stocks that may benefit from the reopening of the US economy.

Viatris Inc. (NASDAQ:VTRS)

Viatris makes medicines and medical equipment. Its top brands include Viagra and Lipitor.

Its products are sold in more than 165 countries.

The company has over 40,000-strong workforce across the globe.

Viatris’ market cap is US$18 billion. It logged a total revenue of US$4.4 billion in the March quarter. Adjusted EBITDA was US$1.6 billion.

It earned US$849 million from operations and registered a cash flow of US$799 million. 

Revenue from new product sales topped US$163 million in Q1.

VTRS stock was priced US$15.095 at 1.20 pm ET May 25, a decline of 1.74% from previous close. The stock gained 2.9% since its listing in December last year.

Also read: Kinder Morgan, Energy Transfer & PAA: 3 Hot Pipeline Stocks

Johnson & Johnson (NYSE:JNJ)

J&J is a 130-year-old healthcare company with popular brands like Band-Aid and Listerine. It makes drugs and medical equipment. It also has come out with a covid vaccine.

Its market capital is US$449 billion. Sales surged 7.9% to US$22321 million in the March quarter against US$20691 in Q1 of 2020.

The company collected US$6.1 billion in net earnings, up 6.9% YoY. In the year-ago quarter, it was US$5.7 billion. Diluted EPS jumped 6.9% YoY to US$2.

The stock rose 17.35% in the past year. the stock was priced US$170.03 at 1.16 pm ET on May 25, down 0.31% from previous close.

Source: Pixabay.

NRG Energy INC. (NYSE:NRG)

It is one of the leading American energy companies with interests in production and retail. It is also a major player in renewables like solar and wind.

It has more than 2.9 million customers across the US, 40 power plants, and produces 23,000 megawatts of electricity. NRG Energy’s market capital is US$8.2 billion.

The company had suffered losses of US$967 million during the Uri blizzard in North America early this year. It logged revenue of US$ 82 million in the three months ended March 31, down from US$121 million YoY.

It posted EBITDA of US$567 million, against US$349 million in Q1 of last year.

NRG stock was trading 1.51% down from the previous close to US$33.245 at 1.29 pm on May 25. The stock shed 7.05% over the last year.

Also Read: Cabot Oil & Gas To Merge With Cimarex Energy In a US$17Bn Deal

Axalta Coating Systems Ltd. (NYSE:AXTA)

It is a 150-year-old company with vast experience in coating solutions. It has more than 100,000 customers from various industries, including carmakers and industrial equipment makers, across 130 countries. Axalta’s products help prevent rusting.

Sales rose 8.1% YoY to US$1.0 billion in the March quarter. Its dilute

d EPS topped US$0.06 in Q1. It was US$0.22 in the same period last year. It logged a cash flow of US$39.6 million from operations. In the year-ago quarter, it was US$11.3 million.

The stock was trading at US$31.575 at 1.36 pm on May 25, down 0.06% from the previous session. The stock gained 36.62% over the last year.

Source: Pixabay.

Also Read: Moderna To Seek FDA, Global Approval For New Children Covid Drug

LKQ Corporation (NASDAQ:LKQ)

The company makes automobile repair parts. Its clients are in the US, the UK, and Taiwan.

Revenue increased 5.7% YoY to US$3.2 billion. It was US$3 billion in Q1 of 2020. Net income skyrocketed 81.9% YoY to US$266 million, against US$146 million in the March quarter.

Diluted EPS climbed to US$0.88 from US$0.48, an increase of around 83%.        

LKQ was priced US$50.54 at 1.35 pm on May 25, up 0.58% from its last close. The stock jumped 86.96% over the past one year.