Down More Than 25% in 2021, Now is a Good Time to Scoop Up These 2 Large-Cap Stocks

The major stock markets closed in the green yesterday. The S&P 500 notched up another record close at 4,791.19, gaining 1.4%. The Dow Jones Industrial Average was up by 351.82 points to close at 36,302.38, while the Nasdaq Composite closed at 15,871.26, gaining 1.4%. After starting the month on a…

pessimistic note, the indices have again started touching new highs after new studies suggested that the omicron variant is less likely to lead to hospitalization. It also found that the omicron variant is milder than the other COVID-19 variants. A solid economic recovery and earnings growth potential has also bolstered investors’ optimism. According to a Factset report, the S&P 500 is expected to report a record net profit margin of 12.8% in CY 2022.

Given this backdrop, we think it could be wise to add fundamentally sound large-cap stocks China Life Insurance Company Limited (LFC – Get Rating) and Activision Blizzard, Inc. (ATVI – Get Rating) to one’s portfolio. They have declined more than 25% in price year-to-date but are expected to rebound owing to their strong fundamentals and favorable growth prospects.

China Life Insurance Company Limited (LFC – Get Rating)

Headquartered in Beijing, China, LFC operates in life insurance, health insurance, accident insurance, and other business segments. The company offers individual and group life, annuity products, accident, and health insurance products. Also, it participates in third-party asset management, annuity funds, and health management businesses. It has a market capitalization of $105.27 billion.

For the six months ended June 30, 2021, LFC’s revenue increased 6.5% year-over-year to RMB537.10 billion ($84.26 billion). The company’s gross written premium increased 3.5% year-over-year to RMB442.29 billion ($69.38 billion). In addition, its net profit came in at RMB40.97 billion ($6.42 billion), up 34.2% year-over-year.

Analysts expect LFC’s EPS and revenue for its fiscal 2021 to increase 23.2% and 42%, respectively, year-over-year to $1.67 and $97.97 billion. The stock declined 25% in price year-to-date to close yesterday’s trading session at $8.30.

LFC’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting. It has a B grade for Value.

Within the 30-stock Insurance – Life industry, it is ranked #6. To see the additional ratings of LFC for Growth, Momentum, Stability, Sentiment, and Quality, click here.

Activision Blizzard, Inc. (ATVI – Get Rating)

With a market capitalization of $50.97 billion, ATVI in Santa Monica, Calif., develops and publishes interactive entertainment content and services across the U.S., Europe, the Middle East, Africa, and the Asia Pacific. The company operates through Activision Publishing, Inc., Blizzard Entertainment, Inc., and King Digital Entertainment.

On October 28, 2021, ATVI announced the…

 

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