The stock market has witnessed wild swings as the multi-decade high inflation, dawdling supply chain, and other macroeconomic headwinds have battered the economy. Moreover, the consumer price index rose 9.1% on a year-over-year basis in June, higher than the anticipated 8.8%.
Additionally, the Fed is committed to bringing down inflation. It might launch another 75-basis point hike this month and a possible 50 basis point hike in September, which are raising the odds of a recession.
However, according to the Bank of America, the ongoing bear market is creating attractive valuations and opportunities for long-term investors.
So, we think investors could grab quality stocks Zoom Video Communications, Inc. (ZM), Teva Pharmaceutical Industries Limited (TEVA), and Trulieve Cannabis Corp. (TCNNF), which are poised to stage a rebound soon.
Zoom Video Communications, Inc. (ZM)
ZM provides a video communication platform that connects people through video, phone, chat, and webinars and enables experiences across disparate devices and locations.
On June 22, ZM introduced Zoom One, the latest evolution in its communications platform that brings together persistent chat, phone, meetings, whiteboard, and more into secure and scalable packages. This should enhance customers' experience.
In the same month, ZM announced the general availability of Zoom Apps SDK, which provides developers with the resources and support infrastructure needed to build Zoom Apps within the Zoom client. This is expected to offer developers new ways to incorporate video communications and collaboration, thereby transforming business workflows.
For the fiscal first quarter ended April 30, 2022, ZM’s revenue increased 12.3% year-over-year to $1.07 billion. Its gross profit grew 17.5% from the year-ago value to $811.98 million.
Street expects ZM’s revenue for the current quarter ending July 2022 to improve 9.4% year-over-year to $1.12 billion. Also, its revenue estimate of $4.54 billion for the fiscal year ending January 2023 represents a 10.8% increase year-over-year. The company also surpassed the consensus EPS estimates in each of the trailing four quarters.
The stock has gained 1.3% over the past three months to close yesterday’s trading session at $107.99. The 12-month median price target of $129.12 indicates a 19.6% potential upside. The price targets range from a low of $90.00 to a high of $190.00.
Teva Pharmaceutical Industries Limited (TEVA)
Headquartered in Tel Aviv-Yafo, Israel; TEVA, a pharmaceutical company; develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America and internationally.
For the fiscal quarter ended March 31, TEVA’s total cash, cash equivalents, and restricted cash balance increased 29.1% year-over-year to $2.25 billion.
Analysts expect TEVA’s revenue in the quarter ending September 2022 to come in at $3.97 billion, indicating an increase of 2.2% year-over-year. Its EPS is expected to improve 7.1% year-over-year to $0.63 in the same period.
TEVA’s shares gained 2% intraday to close the last trading session at $7.00. The 12-month median price target of $8.75 indicates a potential upside of 25%. The price targets range from a low of $7.00 to a high of $10.00.
Trulieve Cannabis Corp. (TCNNF)
TCNNF, a medical cannabis company, cultivates and produces in-house products and distributes them to TCNNF’s branded stores in Florida.
On July 12, TCNNF announced the opening of a new medical dispensary in Hollywood, Florida. This should help the company expand access to medical cannabis to more patients in Florida and the Hollywood community.
Earlier this month, TCNNF also announced the opening of a new medical dispensary in Apopka, Florida.
TCNNF’s revenue increased 64.2% year-over-year to $318.30 million in the fiscal quarter ended March 31, 2022. Gross profit for the quarter came in at $178.20 million, reflecting an increase of 31.7% year-over-year, while the non-GAAP EBITDA stood at $105.50 million, up 16.1% year-over-year.
The consensus EPS estimate of $0.09 for the fiscal quarter ending December 2022 represents an 831.2% improvement year-over-year. The consensus revenue estimate of $367.71 million for the same quarter represents a 20.4% increase from the same period last year.
TCNNF’s shares gained marginally intraday to close the last trading session at $11.38. The 12-month median price target of $49.62 indicates a 336% potential upside. The price targets range from a low of $27.00 to a high of $96.39.
ZM shares were trading at $101.00 per share on Wednesday morning, down $6.99 (-6.47%). Year-to-date, ZM has declined -45.08%, versus a -20.24% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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