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Six Stocks to Buy for Profiting Amid 2022 Challenges

Six stocks to buy for profiting amid 2022 challenges should be fueled by key investment themes.  The six stocks to buy for profiting amid 2022 challenges share characteristics of high quality, inflation-protected dividend yield, value rather than…

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Six stocks to buy for profiting amid 2022 challenges should be fueled by key investment themes. 

The six stocks to buy for profiting amid 2022 challenges share characteristics of high quality, inflation-protected dividend yield, value rather than growth, free cash flow (FCF) generation and more, according to BofA Global Research. Other factors that led to their recommendation include fund positioning, the investment firm’s analysts’ 2022 earnings outlook versus consensus forecasts, as well as other catalysts.

In addition, these six stocks are mostly neglected by active funds and benefit more from inflation, rising interest rates, heightened gross domestic product (GDP), increased oil prices and wage growth, compared to an equal-weighted 11 sector portfolio. The following six stocks to buy for profiting amid 2022 challenges were picked by BoA, which provided analysis for each of its choices. 

The Fed’s Jan. 5 release of the minutes from its December Federal Open Market Committee (FOMC) meeting indicated an increasingly aggressive plan to wind down quantitative easing (QE), raise the Fed Funds Rate and reduce the $9 trillion in debt on the Fed’s balance sheet, Bryan Perry wrote to his Cash Machine newsletter readers. The news impaired short-term investor sentiment and triggered heavy selling in the market’s favorite and dominant growth stocks in subsequent days, he added.

The only sectors holding up under the stress of broad market downside pressure are energy, financials, consumer staples and utilities, Perry opined.

Paul Dykewicz interviews Bryan Perry, who heads the Cash Machine newsletter, as well as the Premium Income, Quick Income Trader, Breakout Profits Alert and Hi-Tech Trader trading services.

Exxon Mobil Is One of Six Stocks to Buy for Profiting Amid 2022 Challenges

Exxon Mobil Corp. (NYSE: XOM) shares traded above $70 on Tuesday, Jan. 11, to reach a new 52-week high. The stock also pays a 5% dividend yield at that breakout level, said Perry, who has been watching the stock rise as an existing recommendation in his Cash Machine newsletter.

Exxon Mobil will stand as the only oil major to emerge from the last five years with capacity for growth in free cash flow, according to BofA Global Research. But while claiming a rich opportunity slate, its chosen pace of investment is perceived as having underestimated cyclical risks, the investment firm wrote.

XOM proved capable of navigating COVID volatility but at a price, adding $20 billion to its balance sheet, and overshadowing prudent management of prior cycles, in contrast to some peers that cut their dividends, BofA wrote. As BofA’s top Energy sector stock for 2022, Exxon Mobil is estimated to have the capacity to resume dividend growth on both an absolute and per-share basis, while restoring its balance sheet to pre-COVID levels.

Bob Carlson, who heads the Retirement Watch investment newsletter, said his top pick for conservative to moderate investors is Energy Select SPDR (XLE), featuring Exxon Mobil as the fund’s top holding among 21 stocks. Carlson, who serves as chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets, said energy stocks finished 2021 strongly, and most of the factors that propelled those gains will continue in 2022.

“Inflation is likely to remain high for much of 2022 and perhaps longer,” Carlson said. “Energy stocks traditionally are a good inflation hedge.” 

Pension fund and Retirement Watch chief Bob Carlson answers questions from columnist Paul Dykewicz.

From discussions with certain investors, the preponderance of views suggests a big issue that gained support from enough shareholders to win 3 of 12 Exxon Mobil board seats was less about climate and more about capital discipline and continuing a sustainable and growing dividend for the stock, BofA wrote. There is little doubt dividend sustainability came under scrutiny through the cyclical trough of 2020 and the company’s payout may increase in 2022 for the first time since 2019, BofA added.

Chart courtesy of www.stockcharts.com

Mondelez Joins Six Stocks to Buy for Profiting Amid 2022 Challenges

Mondelez International, Inc. (NASDAQ: MSLZ), a multinational confectionery, food, holding and beverage and snack food company based in Chicago, Illinois, is BofA’s top pick in the Consumer Staples sector. BoA described Mondelez as a high-quality stock that has positive gross domestic product (GDP) and interest rate betas.

Based on analysts offering 12-month price targets for Mondelez International in the last three months. The average price target is $72 with estimates ranging from a high of $76 to a low of $67, according to NASDAQ. 

However, Mondelez’s share price has soared recently, so the potential profit by investing in the stock now is not as large as it would have been a little more than a month ago. Nonetheless, Mondelez International gained a nod from BofA analysts.

Chart courtesy of www.stockcharts.com

Welltower Gains Spot With Six Stocks to Buy for Profiting Amid 2022 Challenges

Welltower Inc. (NYSE: WELL), a Toledo, Ohio, real estate investment trust (REIT) that invests in health care infrastructure, is BofA’s preferred choice in the real estate sector. BofA cited the REIT’s “attractive dividend yield” of 2.9% as a reason to own its shares.

The $94 price objective for WELL set by BofA accounts for depressed earnings due to the COVID pandemic, as well as expectations of a multi-year period of above-average earnings growth due to a rebound in senior housing as the pandemic wanes. The stock’s price may outperform that estimate amid better-than-expected senior housing or medical office building performance, higher-than-forecast dividend growth and reduced interest rates.

But risks remain. They include public-pay reimbursement cuts, a more competitive acquisitions environment, weaker-than-expected senior housing fundamentals, increased tenant credit risk and rising interest rates, BofA noted.

Welltower has been one of the top holdings of one of Carlson’s recommended funds, Cohen & Steers Realty Shares (CSRSX). Cell tower firms and data storage companies have benefited from increased use of mobile technology and will do so, he added. 

Chart courtesy of www.stockcharts.com

Six Stocks to Buy for Profiting Amid 2022 Challenges Include Eastman Chemical

Kingsport, Tennessee-based Eastman Chemical (NYSE: EMN), an independent global specialty materials company that produces a broad range of advanced materials, chemicals and fibers for everyday purposes, received an upgraded rating to a buy from neutral by BofA in August 2021. The investment firm boosted its earnings per share (EPS) and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates, as well as its price objective on Eastman Chemical to $140, up from $130.

The company, BofA’s favorite choice in the Materials sector, offers an attractive dividend yield of 2.6%. Once a subsidiary of Kodak, EMN’s businesses today offer a highly diversified set of chemical products delivering exposure to various markets. This is accomplished through an expertise in four primary chemical chains: coal gasification and acetyls, para-xylene and polyesters, olefins, and methanol and alkyamines. EMN then markets these products to customers across the product chain, starting at upstream commodities and moving down to highly differentiated chemical derivatives, BofA wrote.

Chart courtesy of www.stockcharts.com

Eastman Chemical Should Not Be Overlooked, BofA Wrote

Eastman Chemical has executed well both through and in the wake of the COVID recession, building on innovation-led initiatives while adding additional avenues for growth, BofA wrote. Supplementing the revenue story is a transition in cash deployment from debt pay down to more direct shareholder value creation. With its shares trading below its highs, BofA sees an attractive value and entry point for investors.

BofA’s $140 price objective is based on the average of its enterprise value to 2022 estimated earnings before interest, taxes, depreciation and amortization (EBITDA) valuation of $147 and its price to 2022 estimated earnings per share (EPS) valuation of $134. The price target is based on 10.5x and 13.5x multiples for BofA’s 2022 EBITDA and EPS estimates, respectively, near the high-end of historical five-year peak valuations of 11.0x forward EBITDA and 14.5x forward P/E. BofA described that level as appropriate due to Eastman Chemical’s expected return to normal profit level, consistent free cash flow generation and positive earnings momentum.

CVS Captures Place Among Six Stocks to Buy for Profiting Amid 2022 Challenges

CVS Health (NYSE: CVS), of Woonsocket, Rhode Island, is one of the largest health care companies in the United States, providing retail, mail and specialty pharmacy dispensing services and pharmacy benefits. CVS is one of the most vertically integrated publicly traded healthcare companies and ranks as BofA’s favorite health care stock. 

CVS Health has been taking share across its three businesses and continues to generate a significant amount of cash flow to support the ongoing growth strategy, BofA wrote. Thus, BoA affirmed its buy rating on CVS and boosted its price objective from $112 to $115.

BofA increased its fiscal year 2021 EPS from $8.00 to $8.04, maintained its fiscal year 2022 E0PS at $8.23 and cut its fiscal year 2023 EPS from $9.08 to $8.98. The latter change stemmed from incremental investments tied to different service buildouts, which are not expected to aid profit materially until at least fiscal year 2024. Share buybacks are expected, with potential mergers and acquisition (M&A) action tied to the company’s growth initiatives to offer near-term catalysts aside from sustaining ongoing operational strength.

Chart courtesy of www.stockcharts.com

Walt Disney Snares Spot in Six Stocks to Buy for Profiting Amid 2022 Challenges

Despite near term COVID pressures and higher direct-to-consumer (DTC) expenses, BofA expect Disney to grow stronger due to robust Disney+/Hulu/ESPN+ subscriber growth and long-term theme park margin potential, among other reasons. Key catalysts incl Disney+ video price increases and more widespread launch in Japan, theme park re-openings and capacity increases and resumption of feature film/TV releases. 

BofA wrote on that it maintains a Buy rating and a $192 price objective on the stock. The investment firm also trimmed its earnings outlook for Disney to reflect slower vaccine rollout leading to more gradual theme park and hotel re-openings, causing temporary delays in production due to a resurgence in COVID cases, theatrical film delays and increased investment in DTC initiatives.

Disney also has been slowed by closures of Disneyland in California and Disneyland in Paris on Oct. 30, along with Disneyland in Hong Kong on Dec. 1, BofA wrote. Those shutdowns led to employee furloughs and other cost-saving measures.

Chart courtesy of www.stockcharts.com

Single-Day Hospitalizations in America Hit New High

U.S. hospitalizations due to COVID-19 surpassed last winter’s peak, proving the virus is becoming increasingly prevalent as the highly contagious Omicron variant spreads across the country. The U.S. Department of Health and Human Services reported that 142,388 people were hospitalized nationwide with the virus as of Sunday, Jan. 9, exceeding the previous single-day record of 142,315 reported on January 14, 2021.

As an indicator of how the virus is spreading, the seven-day average of daily hospitalizations hit 132,086, up 83% from two weeks ago. In addition, the Biden administration called for U.S. insurers to cover eight at-home tests each month.

The holiday season of 2021 marked the second straight year that COVID-19 has interfered with the travel plans of families and friends hoping to gather. Canceled flights keep growing by the thousands due to rising COVID cases, as workers at airlines, airports and related retailers call in sick.

Scientists have confirmed the new Omicron variant of COVID-19 is spreading much faster than the Delta version. However, the severity of the Omicron variant seems weaker than Delta, according to early reports.

Omicron recently has become the dominant variant of COVID-19 in the United States by a wide margin. That version of the coronavirus is blamed for causing the Mid-Atlantic region of Washington, D.C., Maryland and Virginia to set records for daily cases. Many other regions are reporting new peaks for COVID-19 cases, too.

COVID-19 Concerns Mount Along With Cases and Deaths

The Omicron variant of COVID-19 is combining with the Delta version to trigger renewed calls for people in high-risk locales to obtain vaccinations, wear masks indoors and even stay home. Government and public health leaders in the United States also are urging people to receive booster shots, if they are eligible.

The Centers for Disease Control and Prevention (CDC) reported that the variants are spurring people to obtain COVID-19 boosters. However, nearly 62 million people in the United States remain eligible to be vaccinated but have not done so, said Dr. Anthony Fauci, the chief White House medical adviser on COVID-19.

As of Jan 11, 247,321,023 people, or 74.5% of the U.S. population, have received at least one dose of a COVID-19 vaccine, the CDC reported. Those who are fully vaccinated total 207,954,605, or 62.6% of the U.S. population, according to the CDC.

COVID-19 deaths worldwide, as of Jan. 11, topped the 5.5 million mark to hit 5,503,857, according to Johns Hopkins University. Worldwide COVID-19 cases have zoomed past 313 million, reaching 313,353,216 on that date.

U.S. COVID-19 cases, as of Jan. 11, jumped more than 5 million in the past week to total 62,308,132 and caused 842,141 deaths. America has the dreaded distinction as the country with the most COVID-19 cases and deaths.

The six stocks to buy for profiting amid 2022 challenges are recommended by BofA to purchase and hold for the full year. Investors open to accepting that commitment may be rewarded for their patience in what could be a volatile year for the markets.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

The post Six Stocks to Buy for Profiting Amid 2022 Challenges appeared first on Stock Investor.

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Spread & Containment

A dog has caught monkeypox from one of its owners, highlighting risk of the virus infecting pets and wild animals

The monkeypox virus can easily spread between humans and animals. A veterinary virologist explains how the virus could go from people to wild animals in…

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A dog in Paris has become the first case of a pet contracting monkeypox from its owners. Cavan Images via Getty Images

A dog in Paris has caught monkeypox from one of its owners, both of whom were infected with the virus, according to a scientific paper published on Aug. 10, 2022. This is the first case of a dog contracting the monkeypox virus through direct contact with skin lesions on a human.

I am a veterinary pathologist and virologist who has been working with poxviruses for over 20 years. I study how these viruses evade the immune system and am working on modifying poxviruses to prevent infection as well as treat other diseases, including cancer.

With monkeypox spreading in humans throughout the world, my colleagues and I have begun to worry about the increased risk of monkeypox spreading from humans to animals. If monkeypox spreads to wildlife species in the U.S. and Europe, the virus could become endemic in these places – where it has historically been absent – resulting in more frequent outbreaks. The report of the infected dog shows that there is a decent chance these fears could become a reality.

A microscope image of a bunch blue circles in a brown-colored cell.
The monkeypox virus – the blue circles in this image of an infected cell – is a poxvirus similar to smallpox and cowpox and can easily infect many different species. NIAID/Wikimedia Commons, CC BY

A species-jumping virus

Monkeypox is a poxvirus in the same family as variola – the virus that causes smallpox – and cowpox viruses and likely evolved in animals before jumping to humans. Monkeypox causes painful lesions in both humans and animals and, in rare cases, can be deadly. Researchers have found the monkeypox virus in several species of wild rodents, squirrels and primates in Africa, where the virus is endemic. Monkeypox does not need to mutate or evolve at all to be able to infect many different species. It can easily spread from animals to people and back again.

Though there is a fair bit of research on monkeypox, a lot more work has been done on cowpox, a similar zoonotic poxvirus that is endemic in Europe. Over the years, there have been several reports of cowpox infection spreading from animals to humans in Europe.

From people to animals

Until recently, most monkeypox infections occurred in specific areas of Africa where some wildlife species act as reservoirs for the virus. These outbreaks are usually contained quickly through isolation of infected individuals and vaccinating people around the infected individual. The current situation is very different though.

With nearly 40,000 cases globally as of Aug. 17, 2022 – and more than 12,500 cases in the U.S. alone – monkeypox is now widespread within the human population. The risk of any one person transmitting the virus to an animal – particularly a wild one – is small, but the more people are infected, the greater the chances. It’s a numbers game.

There are a number of ways viruses can transfer from animals to people – called spillover – and from people back to animals – called spillback. Since monkeypox is most easily spread through direct skin-to-skin contact, it is a bit more difficult to transmit between species than COVID-19, but certainly possible.

The case of the dog in Paris provides a clear example of how cuddling or being close to a pet can spread the virus. Previous studies on poxviruses like monkeypox have shown that they can stay active in fecal matter. This means that there is a risk of wild animals, likely rodents, catching it from human waste.

A grey rat.
There are a number of species that host monkeypox in Africa – like this gambian rat. Monkeypox can spread from humans to many other animals, including dogs and likely cats and other species of rodents. Louisvarley/Wikimedia Commons, CC BY-SA

The monkeypox virus is also present in saliva. While more research needs to be done, it is potentially possible that an infected person could discard food that would then be eaten by a rodent.

The chances of any one of these events happening is extremely low. But I and other virologists worry that with more people becoming infected, there is a greater risk that rodents or other animals will come into contact with urine, feces or saliva that is contaminated with the virus.

Finally, there is the risk of people giving monkeypox to a pet, which then passes it on to other animals. One case study in Germany described an outbreak of cowpox that was caused when someone took an infected cat to a veterinary clinic and four other cats were subsequently infected. It is feasible that an infected household pet could spread the virus to wild animals somehow.

How to help

One of the key reasons that the World Health Organization was able to eradicate smallpox is that it only infects people, so there were no animal reservoirs that could re-introduce the virus to human populations.

Monkeypox is zoonotic and already has several animal reservoirs, though these are currently limited to Africa. But if monkeypox escapes into wild animal populations in the U.S., Europe or other locations, there will be always be potential for animals to spread it back to humans. With this in mind, there are a number of things people can do to reduce the risks with regard to animals.

As with any infectious disease, be informed about the signs and symptoms of monkeypox and how it is transmitted. If you suspect you have the virus, contact a doctor and isolate from other people.

As a veterinarian, I strongly encourage anyone with monkeypox to protect your pets. The case in Paris shows that dogs can get infected from contact with their owners, and it is likely that many other species, including cats, are susceptible, too. If you have monkeypox, try to have other people take care of your animals for as long as lesions are present. And if you think your pet has a monkeypox infection, be sure to contact a veterinarian so they can test the lesion and provide care when needed.

Even though monkeypox has been declared a public health emergency, it is unlikely to directly affect most people. Taking precautionary steps can protect you and your pets and will hopefully prevent monkeypox from getting into wildlife in the U.S., too.

Amy Macneill does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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International

A-levels: A grades are up compared to pre-pandemic results

The pandemic has has a serious impact on school pupils – but a record number have applied to university.

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Fewer students are getting their first choice of university than in 2021. Monkey Business Images/Shutterstock

The 2022 A-level results are in, and the number of students receiving A or A* grades has fallen – down by 8.4% on 2021.

For the first time since 2019, A-level results are being decided by formal exams. Students were warned that grades were likely to be lower than in 2020 and 2021, when cancelled exams and teacher assessments in A-levels led to record high results. Nevertheless, the proportion of students receiving A grades is up from pre-pandemic levels in 2019.

A busy end to the admissions round is under way for universities and students, and the next steps for students still living with the impact of the pandemic are becoming clearer.

In 2021, some universities were over subscribed and had to offer significant incentives for students to defer their places. While the number of students in 2022 accepted on a UK university course – 425,830 – is higher than in 2019 and the second highest on record, it is 2% lower than in 2021. Just a few days before the results were out, thousands of students did not yet hold an offer of an university place.

Over the past two years, students studying qualifications, whether BTEC, T-level or A-level, have had to cope with the consequences of the pandemic for a significant proportion of their course. This has included school closures and remote lessons, social isolation, illness and increased levels of mental stress.

Highest number of applications

Nevertheless, 2022 has seen the highest ever numbers of applications to higher education, with 44% of 18 year olds applying. This number includes record numbers of students from areas of the country with historically low participation in higher education. It demonstrates that many young people believe higher education can make a difference to their future opportunities.

For the lucky ones who get the grades to gain a place at their first choice of university, planning for their degree course starts right away. A record number of Scottish students have already been accepted to their first choice of university.

The best advice for those students who don’t receive confirmation that they have been accepted by their first choice university is to ring the university, who will have staff on hand to explore their options.

For students who haven’t got a university place, it is still possible to explore options though clearing – which allows students without offers to find places on university courses that haven’t been fully subscribed. Students in this position should try to keep calm, write down their options and avoid quick decisions.

For those young people who do go to university, there will be challenges. With the cost of living for all rising rapidly, people on a lower income – as many students are – will feel the pinch of higher bills for food or rent.

Support from universities

The pandemic saw a serious and concerning rise in mental health issues affecting young people. Universities need to be ready to give holistic support to students as they transition into university and settle into undergraduate life. This means support for academic transition needs to be delivered in the context of good available support for mental health and wellbeing.

However, Universities UK, an advocacy groups for universities, has recently pointed out the wide range of benefits for those who study for a degree, including the £9,500 more per year on average graduates in England earn compared with non-graduates. It also draws attention to the value of degrees to improve the life chances of young people, to build skills and to contribute to society.

For many young people, getting a degree gives them access to a vocation such as teaching or working as a health professional. For others it is a path to travel and adventure. For many, the university journey is a place where young people find their tribe and begin to understand their identity.

For the class of 22, making it to university might mean life-changing opportunities. Given the challenges and restrictions of the last few years, this has never been more important.

Helena Gillespie receives funding from the European Union.

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Government

Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion

According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical…

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According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical company Global Blood Therapeutics (NASDAQ: GBT) for $5 billion.

Pfizer, too, acquired Global Blood Therapeutics 

Pfizer wants to close a deal soon, but there are still other interested parties, according to the article.

Global Blood Therapeutics, which manufactures Oxbryta, the blood disorder medication, saw its shares jump 44%  on Friday afternoon to a two-year high. As of Thursday’s closing, the company’s market cap was $3.12 billion.

A spokesman for Global Blood stated the company does not “comment on market rumors or speculation,” while Pfizer declined to respond on the matter.

With plenty of cash left over after selling its COVID-19 vaccine, New York-based Pfizer is searching for deals that may generate billions of dollars annual sales by 2030.

Its $11.6 billion acquisition of migraine medication manufacturer Biohaven Pharmaceutical Holding (NASDAQ: BHVN) in May was the most recent in a series of purchases that also included Trillium Therapeutics and Arena Pharmaceuticals in recent years.

Oxbryta received approval last year for sickle cell disease management 

In 2019, the US government approved Global Blood’s Oxbryta to manage sickle cell disease in individuals aged 12 and over. The oral medication was approved in December 2021 to treat the illness in younger children. The drug’s sales increased by almost 50% to $194.7 million in 2021.

After a gloomy start to the calendar year, when a lack of significant purchases and clinical-stage treatment failures lowered investor morale and restricted funding, the biotech dealmaking pace has recently picked up again.

Also, Amgen Inc (NASDAQ: AMGN) also decided to purchase ChemoCentryx Inc on Thursday for $3.7 billion to obtain access to a possible breakthrough medication for inflammatory illnesses. AstraZeneca’s $39 billion acquisition of Alexion Pharmaceuticals in 2020 has put the realm of immune diseases in the limelight. The deal, which was announced before trading opened, will also give the corporation control of at least two investigational immune disorders medicines.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

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