This week we're running our screens over the US market. I'm focused on stocks with a market cap of $2bn and upwards, regardless of sector, which are exbhibiting strong value characteristics and which might be in the picture for a re-rating.
For non-subscribers we're providing a couple of names. Early next week we will also be providing our paying subscribers with our US stock tip for July.
- Japan: New leader, new look, new stock tip
- Asia’s Top Five Mid-Cap Stocks To Watch In Q4
- Pila Pharma share issue for obesity drug research is massively oversubscribed
Note that some of these US stocks have been sold down heavily over the last year which is why we are now arguing they are looking over-sold. They are also starting to register as cheap, high quality bets with fund managers. One of the key factors has been uncertainty surrounding Trump administration policies, which can be a double-edged sword for US companies.
Charles River Laboratories [NYSE:CRL]
US drugs development services specialist Charles River Laboratories could be about to stage something of a comeback, having shed over 31% in stock value in the last 12 months. That said, Wall Street seems to be taking notice of Charles River once again. Stock is up 34% since the company's last set of results. The balance sheet looks top notch for a US healthcare sector stock. Revenue still provides some cause for concern, but the company looks well-positioned as a possible defensive play for the second half.
Agilent Technologies [NYSE:A]
Agilent is currently trading on a PE of just under 30x, which starts to make it look cheap for a US tech stock. This is thanks in no small part to the heavy sell-off in the stock in Q1. Volume in the shares is picking up, and they have edged up since the last set of numbers. The life sciences and genomics company came out with some more positive results in early June, including a 6% increase in revenues and EBITDA up 27%. In spite of no improvement in cash flow, the company's management returned an impressive amount of $247m to the shareholders, of which $70m was paid as a dividend and $177m as a repurchase of common stock.
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