U.S. stocks rallied yesterday after notching seven weeks of continuous losses. The S&P 500 recovered after almost entering a bear market territory during Friday's session. The index climbed 1.9%, while the Dow Jones and Nasdaq composite rose nearly 2% and 1.6%, respectively. This move came after President Biden commented that he was considering relaxing some tariffs on Chinese goods that had been imposed during the prior administration.
However, the stock market has been underperforming since the beginning of the year due to several macroeconomic factors. And despite yesterday's rally, the Fed's hawkish stance to tame the surging inflation and fears of a possible recession could keep the stock market under pressure. Moreover, continued geopolitical uncertainties and rising energy costs could increase market volatility. According to "Shark Tank" star and Cyderes CEO Robert Herjavec, the U.S. stock market will plunge 20%-30% even further before hitting bottom.
Because macroeconomic and geopolitical factors are unlikely to alter anytime soon, investors may benefit by investing in fundamentally sound low-priced stocks. That’s why today we’re highlighting 4 stocks from our Top 10 Under $10 screen, which is just 1 of the 10 screens in our POWR Screens 10 service (more on that below). Assertio Holdings, Inc. (ASRT), Overseas Shipholding Group, Inc. (OSG), SunCoke Energy, Inc. (SXC), and Global Cord Blood Corporation (CO), which are currently trading at less than $10, are top-rated in our proprietary POWR Ratings system.
Assertio Holdings, Inc. (ASRT)
Headquartered in Lake Forest, Illinois, ASRT is a specialty pharmaceutical company that offers neurology, hospital, and pain and inflammation medicines. Its pharmaceutical products include INDOCIN, an oral solution and a suppository form for the treatment of moderate to severe rheumatoid arthritis, including acute flares of chronic disease; ankylosing spondylitis and osteoarthritis; and acute painful shoulder and gouty arthritis.
ASRT's net product sales increased 36.1% year-over-year to $35.54 million during the first quarter ending March 31, 2022. Its income from operations amounted to $11.56 million, up 54% from its year-ago value, while its adjusted earnings grew 70.3% from its prior-year quarter to $17.53 million. The company's adjusted EPS rose 40.7% year-over-year to $0.38.
Analysts expect revenue to increase 25.2% year-over-year to $31.78 million for the second quarter ending June 2022. Closing the last trading session at $3.09, the stock has gained 108.8% over the past year and 220.5% over the past nine months.
ASRT's POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
The stock also has an A grade for Growth, Quality, and Value. Within the Medical - Pharmaceuticals industry, it is ranked #16 of 166 stocks. To see additional POWR Ratings for Stability, Sentiment, and Momentum for ASRT, click here.
Overseas Shipholding Group, Inc. (OSG)
OSG, together with its subsidiaries, owns and functions a fleet of oceangoing vessels. Its vessels are involved in transporting crude oil and petroleum products in the United States flag trade. The company is headquartered in Tampa, Florida.
During the first quarter ending March 31, 2022, OSG's shipping revenues increased 28% year-over-year to $104.00 million. Its operating income amounted to $7.70 million compared to an operating loss of $15.79 in the prior-year quarter, while its adjusted EBITDA grew 309.2% year-over-year to $25.41 million. The company's cash and cash equivalent stood at $76.90 million for the three months ended March 31, 2022.
The stock has gained 12.2% year-to-date and 14.7% over the past six months to close the last trading session at $2.11.
OSG's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our POWR Ratings system. OSG has also rated an A grade for Momentum and a B grade for Growth and Sentiment. Within the A-rated Shipping industry, it is ranked #2 of 45 stocks.
In total, we rate OSG on eight different levels. To see additional POWR Ratings for Quality, Value, and Stability for OSG, click here.
SunCoke Energy, Inc. (SXC)
Headquartered in Lisle, Illinois, SXC functions as an independent producer of coke in the Americas and Brazil. The company has three operational segments: Domestic Coke; Brazil Coke; and Logistics. It offers metallurgical and thermal coal. The company also provides handling and mixing services to steel, coke, electric utility, coal producing, and other manufacturing-based customers.
For the first quarter ended March 31, 2022, SXC's revenues increased 22.2% year-over-year to $439.8. Its operating income grew 27.2% from its year-ago value to $48.60 million, while its net income improved 78.8% from its prior-year quarter to $29.50 million. The company's EPS rose 75% year-over-year to $0.35.
The consensus EPS estimate of $0.17 for the fourth quarter ending December 2022 represents a 13.3% year-over-year growth. Analysts expect revenue to increase 29.7% year-over-year to $472.60 million for the second quarter ending June 2022. The stock has gained 22.6% year-to-date and 23.9% over the past six months to close the last trading session at $8.08.
It is no surprise that SXC has an overall A rating, equating to Strong Buy in our POWR Ratings system. SXC has an A grade for Sentiment and a B grade for Value and Quality. In the A-rated Coal industry, it is ranked #1 of 10 stocks. Click here to see the additional POWR Ratings for SXC (Growth, Stability, and Momentum).
Global Cord Blood Corporation (CO)
Headquartered in Central Hong Kong, CO and its subsidiaries provide umbilical cord blood storage and ancillary services in the People's Republic of China. The company renders cord blood testing, processing, and storage services under the direction of subscribers, tests, processes, stores donated cord blood, and provides matching services.
Last month, CO announced that the company would acquire 100% of Cellenkos, Inc (CLNK) and the rights to build and commercialize all of its existing and future products internationally except those related to CLNK's present collaboration with Incyte Corporation (INCY). The company has entered into agreements with the holders of approximately 95% of CLNK's outstanding equity interest and GM Precision Medicine (BVI) Limited (GMP).
During the third quarter ending December 31, 2021, CO's revenues increased 9.1% year-over-year to RMB317.20 million ($40.51 million). Its non-GAAP operating income grew 18.6% from its year-ago value to RMB161.61 million ($24.25 million), while its net income improved 15.1% from its prior-year quarter to RMB134.19 million ($20.14 million). The company's EPS rose 15.6% year-over-year to RMB1.11. The stock closed the last trading session at $2.50.
CO's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our POWR Ratings system. The stock also has an A grade for Quality and a B grade for Value and Stability. Within the Medical - Diagnostics/Research industry, it is ranked #1 of 50 stocks.
In total, we rate CO on eight different levels. Beyond what we've stated above, we have also given CO grades for Growth, Sentiment, and Momentum. Get all the CO ratings here.
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ASRT shares fell $0.02 (-0.69%) in after-hours trading Tuesday. Year-to-date, ASRT has gained 33.03%, versus a -16.81% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
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