Since many analysts expect inflation to continue trending higher despite interest rate increases, we think it could be wise to bet on ABB , which we think can survive even higher inflation.
Concerns over record-high inflation, supply chain constraints, a continuing war between Russia and Ukraine, and expected aggressive interest rate hikes by the Federal Reserve have kept the stock market under pressure.
However, the global supply disruptions and bans on Russian oil, natural gas, and crucial commodities are expected to push inflation to new highs.
Because many economists expect the inflationary pressure to persist longer than expected, stocks possessing sufficient pricing power from companies whose products and services have inelastic or near-inelastic demand should be the ideal investments to weather inflation.
Headquartered in Zurich, Switzerland, ABB manufactures and sells electrification, automation, robotics, and motion products for customers in utilities, industry, transport, and infrastructure.
On April 1, 2022, ABB launched its new share buyback program of up to $3 billion.
ABB’s revenues increased 0.9% year-over-year to $6.96 billion for the first quarter, ended March 31, 2022.
Analysts expect ABB’s EPS and revenue for its fiscal 2023 to increase 15.1% and 6.8%, respectively, year-over-year to $1.83 and $31.96 billion.
According to our proprietary rating system, it has an overall B rating, which translates to a Buy.
It is ranked #24 out of 76 stocks in the B-rated Industrial – Machinery industry.
OLN in Clayton, Miss., produces and sells chemical products in the United States, Europe, and globally.
On April 28, 2022, OLN announced the signing of a memorandum of understanding to create a joint venture with Plug Power, Inc.
For its fiscal first quarter, ended March 31, 2022, OLN’s sales increased 28.2% year-over-year to $2.46 billion.
For the quarter ending March 31, 2022, OLN’s EPS and revenue are expected to increase 52.6% and 28.3%, respectively, year-over-year to $2.35 and $2.46 billion.
To see the other ratings of OLN for Growth, Momentum, Stability, and Sentiment, click here.
DOW is the holding company for the Dow chemical company and its subsidiaries.
On January 25, 2022, DOW announced an agreement with Locus Performance Ingredients to sell its high-performance sophorolipid biosurfactants in the global home care and personal markets.
Over the past six months, the stock has gained 19.8% in price to close the last trading session at $67.81.
It has an A grade for Value and a B grade for Sentiment and Quality.
Famous membership warehouse operators COST in Issaquah, Wash., offers branded and private-label products throughout a range of merchandise categories.
For its fiscal year 2022, COST’s EPS and revenue are expected to increase 18.2% and 13.2% year-over-year to $13.11 and $221.76 billion, respectively.
It is ranked #22 out of 39 stocks in the A-rated Grocery/Big Box Retailers industry.
Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.