The Nasdaq Composite, S&P 500, and Dow rose 1.6%, 2.5%, and 1.9%, respectively, in the last trading session. Despite the occasional rallies, multi-decade high inflation, and the Fed’s effort to control it by raising rates are expected to keep the market extremely volatile.
A possible recession may lead to fewer jobs and weak consumer sentiment, weighing on the stock market. The median probability of a recession over the next 12 months stands at 47.5%, up from 30% in June, according to a Bloomberg survey of economists.
The Federal Reserve is expected to go with another 75 basis point rate hike rather than a larger move at its meeting next week to tame stubbornly high inflation.
Amid the uncertainties surrounding the stock market and the economy, it could be worth tracking high-volume stocks to minimize the liquidity risk. Vale S.A. (VALE), Ambev S.A. (ABEV), and Nokia Oyj (NOK) are among the most active equities on Wall Street at the moment. Because of their high trading volume, these stocks could be good additions to your watchlist.
Vale S.A. (VALE)
Headquartered in Rio de Janeiro, Brazil, VALE and its subsidiaries produce and sell iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Ferrous Minerals and Base Metals are the company's two operational segments. It has traded at an average volume of 36,098,431 over the past three months.
VALE's net operating revenue amounted to $10.81 billion for the first quarter ending March 31, 2022. The operating income came in at $6.60 billion, while its net income stood at $4.48 billion over the period. The company's EPS amounted to $0.93 over the period.
Analysts expect VALE's revenue to increase 2.9% year-over-year to $12.86 billion for the fourth quarter ending December 2022. Moreover, it has an impressive earnings surprise history, as it surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has lost 11.3% year-to-date.
VALE'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 Quality and a B for Value. Within the Industrial – Metals industry, it is ranked #8 of 36 stocks. Click here for VALE's additional POWR Ratings for Growth, Stability, Sentiment, and Momentum.
Ambev S.A. (ABEV)
Headquartered in São Paulo, Brazil, ABEV produces, distributes, and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products in the Americas. The company has four operating segments: Brazil; Central America and the Caribbean; Latin America South; and Canada. The stock has traded at an average volume of 34,290,745 over the past three months.
During the first quarter ending March 31, 2022, ABEV’s net revenue increased 10.8% year-over-year to R$16.64 billion. Its income from operations grew 4.3% from its year-ago value to R$4.16 billion, while its profit improved 28.6% from its prior-year quarter to R$3.56 billion. The company’s EPS rose 29.4% year-over-year to R$0.22.
The $0.06 consensus EPS estimate for the fourth quarter, ending December 2022, represents a 20.9% improvement year-over-year. Analysts expect its revenue to increase 2.8% year-over-year to $3.18 billion for the second quarter ending December 2022. The company’s shares have surged 4% over the past month.
ABEV’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, equating to Buy in our POWR Ratings system. The stock also has a B for Quality. Within the A-rated Beverages industry, it is ranked #12 of 35 stocks.
In total, we rate ABEV on eight different levels. Beyond what we've stated above, we have also given ABEV grades for Stability, Sentiment, Growth, Value, and Momentum. Get all the ABEV ratings here.
Nokia Oyj (NOK)
NOK provides mobile, fixed, and cloud network solutions worldwide. The company has four operating segments: Mobile Networks; Network Infrastructure; Cloud and Network Services; and Nokia Technologies.
It offers products and services for radio access networks covering technologies from 2G to 5G and microwave radio links for transport networks. NOK has traded at an average trading volume of 34,332,044 over the past three months.
This month, NOK extended its partnership with Hill Air Force Base and the National Spectrum Consortium to ensure that incumbent radar and 5G networks can co-exist smoothly in a shared spectrum by controlling the behavior in real-time of the 5G system when the incumbent radar is present. The project is part of a wider initiative by the Office of the Under Secretary of Defense Research and Engineering to create its first tranche of 5G wireless testbeds.
Last month, NOK announced an FTTH deal with all-fiber service provider Wire 3. The Florida-based operator is rolling out a 10Gb/second network along Florida’s Atlantic Coast, including Edgewater and New Smyrna Beach. The deal includes fiber access nodes for the central office, fiber modems for customer homes, service routers, Wi-Fi gateways, and Nokia’s Altiplano broadband network controller.
For the second quarter of fiscal 2022, NOK’s net sales increased 11% year-over-year to €5.87 billion ($5.99 billion). Its operating profit increased 17% year-over-year to €564.00 million ($575.97 million), while the profit grew 31% from its year-ago value to €460.00 million ($469.77 million). The company’s EPS amounted to €0.08, up 33% from its year-ago value.
The consensus EPS estimate of $0.11 for the third quarter ending September 2022 indicates a 13.2% improvement year-over-year. Analysts expect NOK’s revenue to increase 2.6% year-over-year to $24.71 million for fiscal 2023. Moreover, it has an impressive earnings history, as it surpassed the consensus EPS estimate in all of the trailing four quarters. The stock has gained 2.4% over the past month.
It is no surprise that NOK has an overall B rating, equating to Buy in our POWR Ratings system. NOK has an A grade for Value. In the Technology - Communication/Networking industry, it is ranked #11 of 53 stocks.
Click here to see the additional POWR Ratings for NOK (Sentiment, Growth, Stability, Momentum, and Quality).
VALE shares fell $0.01 (-0.08%) in after-hours trading Thursday. Year-to-date, VALE has declined -7.38%, versus a -15.41% 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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