The stock market kick-started 2022 on a bright note after shrugging off the omicron variant infection worries, with the S&P 500 index and Dow Jones Industrial Average hitting record highs on the first trading day of 2022. The S&P 500 notched up
seventy new highs in 2021.
However, increasing market volatility driven by the Fed’s hawkish monetary policies and rising concerns regarding the spread of COVID-19 variants caused benchmark indexes to slump last week. The CBOE Volatility Index has risen 22% year-to-date, while the tech-heavy Nasdaq 100 reported its worst weekly performance since February 2021.
Given this backdrop, we think that investing in fundamentally sound value stocks might help investors hedge market volatility to a degree. And Wall Street analysts expect mid-cap stocks OneMain Holdings, Inc. (OMF – Get Rating), Vontier Corporation (VNT – Get Rating), and Herbalife Nutrition Ltd. (HLF – Get Rating) to rally more than 30% in price in the coming months.
OMF is an Evansville, Ind.-based financial service holding company that provides personal loan products, offers optional credit insurance and other products, services loans owned by the company and third parties. It pursues strategic acquisitions and dispositions of assets and businesses. It also provides origination, underwriting, and servicing of personal loans. It has a market capitalization of $6.88 billion.
OMF’s pre-tax income increased 10.2% year-over-year to $376 million for the third quarter, ended Sept.30, 2021. The company’s net income increased 15.2% year-over-year to $288 million. Also, its EPS came in at $2.17, representing a 16.6% increase of 16.6% from the same period last year.
Analysts expect OMF’s EPS to increase 77.4% year-over-year to $10.77 in its fiscal 2021. Its revenue is expected to increase 13.9% year-over-year to $3.92 billion in fiscal 2022. It surpassed the Street’s EPS estimates in each of the trailing four quarters. In terms of forward P/S, OMF’s 1.71x is lower than the 3.57x industry average.
Over the past year, the stock has gained 6.2% in price to close Friday’s trading session at $53.13. Wall Street analysts expect the stock to hit $71.25 in the near term, indicating a potential 34.1% upside.
OMF’s POWR Ratings reflect solid prospects. The company has an overall B rating, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
It has a B grade for Quality. It is ranked #3 of 52 stocks in the Consumer Financial Services industry. Click here to see the other ratings of OMF for Growth, Value, Momentum, Stability, and Sentiment.
VNT in Raleigh, N.C., researches and develops, manufactures, sells, and distributes critical technical equipment, components, software, and services for manufacturing, repair, and servicing worldwide in the mobility infrastructure industry. It offers a range of solutions that include environmental sensors, fueling equipment, field payment hardware, remote management, vehicle tracking, and workflow software. It has a market capitalization of $5.17 billion.
On Dec.3, 2021, VNT announced its intention to reduce absolute Scope 1 and 2 greenhouse gas emissions by 45% by 2030, considering 2020 as the base year. In line with the Paris Climate agreement, it seeks to…
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