Grab These 5 Must-Own Mid-Cap Stocks in December

Factors such as the emergence of another infectious coronavirus variant, rising inflation, geopolitical tensions, supply chain constraints, and the Federal Reserve’s decision to taper its bond-buying soon are driving market volatility. The major benchmark indexes witnessed a sell-off last Friday…

raising concerns about a potential market correction in the near term.

Against this backdrop, fundamentally sound mid-cap stocks could be ideal bets. Historically, mid-cap stocks have delivered better returns than large-cap stocks and remained more stable than small-cap stocks. With favorable policies encouraging domestic production, and with ongoing efforts to address supply chain issues acting as a support, mid-cap stocks should benefit this month and beyond.

Therefore, we think investors could consider betting on mid-cap stocks AerCap Holdings N.V. (AER – Get Rating), Jabil Inc. (JBL – Get Rating), Olin Corporation (OLN – Get Rating), AutoNation, Inc. (AN – Get Rating), and Penske Automotive Group, Inc. (PAG – Get Rating) now. Their fundamental strength, latest developments, and expanding market reach should help them dodge the market fluctuations and outperform the benchmark indexes.

AerCap Holdings N.V. (AER – Get Rating)

Headquartered in Dublin, Ireland, AER engages in the lease, financing, sale, and management of commercial aircraft and engines internationally. The company offers cash management, administrative, and aircraft asset management services and conducts lessee financial performance reviews. As of September 30, 2021, AerCap’s portfolio consisted of 1,304 owned, on-order, or managed aircraft. It had a market capitalization of $13.75 billion.

On November 2, 2021, AER signed a 20-year joint venture agreement with French-based aerospace engine manufacturer Safran Aircraft Engines regarding Shannon Engine Support (SES). SES is the leading provider of spare engines to CFM56 and LEAP operators. With similar expertise, common assets, and a complementary customer base to its wholly-owned engine leasing business, AER expects the SES business to be a great fit for its portfolio.

On November 1, 2021, AER acquired the GE Capital Aviation Services business from General Electric (GE), a multinational conglomerate that operates through Power, Renewable Energy, Aviation and Healthcare, and Capital segments. The acquisition positions AER as the worldwide industry leader across all areas of aviation leasing: aircraft, engines, and helicopters. As the demand for aircraft leasing accelerates, AER is looking forward to witnessing high sales in the coming months and serving a larger customer base.

For its fiscal third quarter, ended September 30, 2021, AER’s total revenues and other income increased 41.7% year-over-year to $1.45 billion. The company’s pre-tax income came in at $501.31 million, versus a $952.98 million loss in the prior-year period. AER’s net income came in at $433.92 million, versus an $849.93 million loss in the year-ago period. And its EPS was $3.35, compared to a $6.66 loss per share in the prior-year period. The company had $1.31 billion in cash and cash equivalents as of September 30, 2021.

 

 

Analysts expect the stock’s EPS to increase 23.8% year-over-year to $8.73 in the current year. A $5.06 billion consensus revenue estimate for the current year represents a 12.6% rise from the prior-year period. It surpassed the Street’s EPS estimates in three of the trailing four quarters.

The stock has gained 52.5% in price over the past year and 3.2% over the past three months. It closed yesterday’s trading session at $54.50.

AER’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a B grade for Growth, Sentiment, Momentum, and Quality. Click here to see the additional ratings for AER’s Value and Stability. Of the 15 stocks in the A-rated Air Freight & Shipping Services industry, AER is ranked #1.

Jabil Inc. (JBL – Get Rating)

With a market cap of $8.56 billion, St. Petersburg, Fla.-based JBL provides electronic design and manufacturing services and solutions worldwide. The company provides systems assembly, regulatory compliance, reliability tests, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking, and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries.

On November 9, Badger Technologies, JBL’s product division specializing in retail automation, collaborated with TrackTik Software Inc., a cloud-based security workforce management software company, to deploy…

 

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