The world is facing inflation and economic breakdown. The Fed has raised interest rates five times higher than the standard rates, to the ongoing range of 3%-3.25%. Despite all the efforts of the Fed to tighten this year, the Consumer Price Index (CPI) reached 8.2% in September, which goes beyond market estimates.
People expect Fed policymakers to deliver another supersized interest-rate hike. Yet, the commitment of Fed officials led to borrowing costs of 5% by March 2023. Thus, we have all the reasons to trigger a recession.
Moreover, it is possible that the central bank will approve a 50-basis point rate hike in December. The increase of 25 basis points happened in two meetings in February and March.
Bloomberg economists have shown the updated recession probability model which predicts an economic downturn to take place within the next day. It is nearly 100% that a recession will take place in the U.S. by October 2023.
From the perspective of professional analysts, traders, and investors, they may wonder which stocks can navigate market turbulence and generate stable returns amidst the forecasts of a gloomy economy. This blog walks you through three resilient stocks including Visa Inc. (V), Centene Corporation (CNC), and Kroger Co. (KR).
Visa Inc. is a leader in payment technology facilitating digital payments among consumers, merchants, financial institutions, strategic partners, businesses, and government entities. Besides, the company offers card products, platforms, and other value-added services under Visa, Visa Electron, Interlink, VPAY, etc.
V made a handshake with Thunes, on October 19th, 2022, to launch an international send-to-wallet capability for small companies and consumers. They can transfer money across borders with even 78 digital wallet providers. It has reached 1.5 billion digital wallets in nearly 45 countries and territories. As a result, V is expected to scale up Visa Direct’s reach to almost 7 billion endpoints.
Moreover, Visa Canada and TD Securities partnered with each other on a project of innovation. Hence, TD becomes the first Canadian financial institution to participate in Visa B2B Connect having connections with more than 100 countries and territories. This deal is also believed to extend the company’s market reach and enhance V’s profitability.
V’s net revenues climbed 19% year-over-year to $7.79 billion. V’s excellent performances are also shown through the growth of its operating income, $5.09 billion in the fourth quarter of this year. Meanwhile, the company’s non-GAAP net income and earnings per share reached $4.09 billion and $1.93, respectively.
The stocks of V have achieved a growth of 19.1% over the past month when closing the trading session at $209.34. Overall, it shows a promising outlook and consistent development through POWR Ratings and Stability.
Centene Corporation (CNC) marks its reputation through government-sponsored and commercial healthcare programs for underinsured and uninsured individuals. Besides, it offers education and outreach programs for information and assistance to access appropriate healthcare services.
Its Nebraska Total Care has got the award from the Nebraska Department of Health and Human Services (DHHS) statewide Medicaid managed care contract. Moreover, it has a new six-year contract to provide children and youth in foster care with premium healthcare coverage.
Up to the fiscal 2022 third quarter of September 30, 2022, the company’s total revenues mounted 11% year-over-year to $35.87 billion. Two main power momentums are Medicaid and Medicare growth. It has an increase in the adjusted net earnings to $755 million with a growth rate of 1.3%.
It has a positive forecast by analysts in terms of revenue and EPS growth with a raise of 14.8% and 11.2% year-over-year, respectively. CNC also has achieved an increase in CNC shares when reaching 10.3% over the past month and 19.8% over the past year to close the last trading session at $85.80.
It won the rating of A for overall performance, yet it has a grade of B for Value and Quality. In the POWR ratings. CNC ranked fifth position of stocks in the A-rated Medical — Health Insurance industry.
The Kroger Co. focuses on the operation of drug store and combination food, multi-department stores, price-impact warehouses, etc. There are more than 2,7000 supermarkets in 35 states under the management of KR.
Amidst the chaos and the potential economic collapse, on October 14th, 2022, KR had a definitive agreement to expand the customer reach. Also, this deal enhances proximity to deliver fresh and affordable food to around 85 million households having a premier omnichannel experience.
Thanks to this merger agreement, KR would like to acquire a great amount of ACI common and preferred stock with an estimated total consideration of $34.10/share. It will bring about over $200 billion of revenue per year.
The performance of KR shows the bright future through the growth of sales — 9.3% year-over-year in the second quarter of 2022. The operating profit increased 13.7% year-over-year while the company’s adjusted EBITDA mounted to $7.63 billion.
Experts have high hopes in the growth of KR in the future to have a revenue of $148.32 billion for the fiscal year ending January 2023. Besides, its EPS might climb to 10.9% year-over-year to $4.08.
Such a database backs up the evaluation of an overall A rating by POWR and a B in Growth, Value, and Quality.
V, Centene, and KR show stable progress even though the whole market is facing tense situations and the possibility of an economic downturn. Thus, many analysts take notice of these stocks with the strong belief that they can navigate the market turbulence.
However, the information here should not be taken as the ultimate advice or the bible guiding you to pick stocks for your trading portfolio or watchlists. We try our best to serve you the most helpful references so that you can enrich your account with profitable stocks amidst the tension of (maybe) a global recession!
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