The December jobs report shows steady job growth despite slowing wage inflation and analysts who expect inflation to cool further in the last month of 2022 are fueling optimism. So we think now is the right time to invest in quality stocks VEON (VEON), Berry Corporation (BRY), Rimini Street (RMNI) and Nature’s Sunshine Products (NATR). These shares are currently trading below $10. Keep reading….
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In 2023, a global slowdown seems imminent. However, many experts now believe that the US economy could avoid serious damage. In addition, economists surveyed by Dow Jones expect the consumer price index to rise 6.5% in December, down from 7.1% in November 2022.
In addition, inflation expectations fell to the lowest level since 2021. On the other hand, despite a decline in wage growth, the labor market remains stable, 223,000 jobs added in December. President Biden said: “The unemployment rate is the lowest in 50 years. We have just completed the two strongest years of job growth in history.”
Such conditions have increased the likelihood of a ‘soft landing’, with the Fed achieving price stability while avoiding a recession. Benchmark indices are also expected to show a recovery this year amid growing optimism.
Given this backdrop, we believe investors should consider buying quality stocks, VEON Ltd. (VEON), Berry Corporation (MASH), Rimini Street, Inc. (RMNI), and Nature’s Sunshine Products, Inc. (NATR). These shares are currently trading below $10.
VEON Ltd. (VEON)
Headquartered in Amsterdam, the Netherlands, VEON and its subsidiaries provide mobile and fixed telecommunications services. It provides voice, data and other telecommunication services.
VEON’s 12-month gross profit margin of 76.90% is 52.8% higher than the industry average of 50.32%. The 12-month EBITDA margin of 36.24% is 90.2% higher than the industry average of 19.05%.
VEON revenue was $2.08 billion for the third quarter of 2022, up 3.6% year-over-year. Service revenues were up 7.9% year-over-year to $1.97 billion, while EBITDA was $889 million, a slight increase year-over-year.
VEON is ahead EV/Sales of 1.36x is 27.6% lower than the industry average of 1.87x, while the expected price/sales of 0.10x is 92.1% lower than the industry average of 1.29x.
Analysts expect VEON’s revenue to rise 6.2% year-over-year to $8.27 billion for the yet-to-be-reported fiscal year 2022. The stock is up 16.5% over the past six months to close the latest trading session to close at $0.52.
VEONs POWR ratings reflect this promising outlook. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. The POWR Ratings rate stocks on 118 different factors, each with its own weighting.
VEON has an A grade for Value and a B grade for Growth, Sentiment and Quality. VEON ranks first out of 47 stocks within the A rating Telecom – Abroad industry. Click here for additional VEON ratings (Momentum and Stability).
Berry Corporation (MASH)
The independent upstream energy company BRY develops and produces conventional oil reserves in the western United States. It operates in two segments, development and production; and well maintained and abandoned.
On November 2, 2022, Trem Smith, Chairman and CEO of BRY, said, “At current oil strip prices and with a strategy to keep our production flat, we are on track to return our shareholders the equivalent of our current market cap. of about $700 million in just three years.
BRY’s 12-month gross and EBITDA margins of 52.25% and 41.61% are 27.8% and 34% higher than industry averages of 40.90% and 31.05%, respectively.
Total revenue from BRY and others was $376.45 million for the third quarter ended September 30, 2022, an increase of 162.5% year over year. Adjusted net income came in at $45.52 million, up 294.5% year-over-year. Also, adjusted earnings per share came in at $0.55, up 292.9% year-over-year.
BRY’s EV/Sales forward of 1.31x is 27.7% lower than the industry average of 1.81x. The expected price/sales of 0.83x is 37.5% lower than the industry average of 1.32x.
BRY’s revenue and earnings per share are expected to grow 49.6% and 676% year over year to $815.13 million and $1.94 for fiscal year 2022 yet to be reported. Up 10.7% to last trading session at $8.10.
BRY’s strong fundamentals are reflected in its POWR ratings. It has an overall B rating, which equates to a Buy in our proprietary rating system.
The stock also has an A rating for value and momentum and a B for growth. Within the B rating Energy – Oil & Gas industry, it ranks number 6 out of 92 stocks. Click here for BRY’s additional POWR ratings for stability, sentiment, and quality.
Rimini Street, Inc. (RMNI)
RMNI provides enterprise software products, services and support for various industries. The company provides software support services for Oracle and SAP enterprise software products.
On December 6, 2022, RMNI launched Rimini Connect™, a new suite of integration and interoperability solutions. This new product is expected to provide simple solutions for ever-changing integration and interoperability requirements, contributing to the company’s growth.
RMNI’s 12-month gross profit margin of 62.91% is 27% higher than the industry average of 49.53%, while its 12-month net profit margin is substantially higher than the industry average of 3.22%.
RMNI revenue was $101.93 million for the third quarter ended September 30, 2022, up 6.6% year-over-year. Gross profit was $62.66 million, a slight increase year-over-year. In addition, long-term debt was $71.44 million for the period ended September 30, 2022, compared to $79.66 million for the period ended December 31, 2021.
RMNI’s EV/Sales forward of 0.79x is 69.9% lower than the industry average of 2.62x. The expected price/sell price of 0.89x is 66.4% lower than the industry average of 2.63x.
Street expects RMNI revenue to grow 7.7% year over year to $436.09 million in 2023. Earnings per share is expected to grow 15% annually over the next five years. Over the past month, the stock is up 6.3% to close out the last trading session at $4.06.
It’s no surprise that RMNI has an overall B rating, indicating a buy in our proprietary rating system.
It has a B grade for value and quality. RMNI is ranked 28 out of 139 stocks in the Software application industry. Get additional RMNI assessments for growth, momentum, stability and sentiment here.
Nature’s Sunshine Products, Inc. (NATR)
The natural health and wellness company NATR primarily manufactures and markets nutritional and personal care products in Asia, Europe, North America, Latin America and internationally.
On November 3, 2022, CEO Terrence Moorehead said, “We remain confident that we will navigate this unique period of volatility and uncertainty, supported by our strong balance sheet and team of experts on the ground.”
NATR’s 12-month gross profit margin of 71.59% is 126.2% higher than the industry average of 31.66%. The 12-month ROTA of 4.96% compares to the industry average of 3.62%.
For the third quarter ended September 30, 2022, NATR’s selling, general and administrative expenses were $36.79 million, down 6.9% year-over-year. Total current liabilities were $63.89 million for the period ended September 30, 2022, compared to $76.67 million for the period ended December 31, 2021.
NATR’s EV/Sales forward of 0.35x is 79.6% lower than the industry average of 1.70x. The expected price/sell price of 0.43x is 63.5% lower than the industry average of 1.17x.
For 2023, NATR’s revenue is expected to increase slightly year over year to $420.61 million. Over the past month, the stock is up 15.2% to close out the last trading session at $9.33.
NATR has an overall A grade, which translates to a Strong Buy rating in our POWR rating system.
It has an A rating for value and quality and a B for stability and sentiment. It is number 2 out of 10 stocks in the A rating Medical – Consumer Goods industry. Click to see additional growth and momentum POWR ratings for NATR here.
VEON shares fell $0.02 (-3.47%) during premarket trading on Wednesday. Year-to-date, VEON has gained 2.04%, versus a 2.53% increase in the benchmark S&P 500 index over the same period.
About the author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. Right away masters degree in economicsshe helps investors make informed investment decisions through her insightful commentary.
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