The economy is witnessing a surge in consumer confidence, exemplified by The Conference Board’s Consumer Confidence Index reaching its highest level since July 2021 and the Dow Jones Industrial Average experiencing its longest winning streak since 2017. Moreover, the International Monetary Fund’s raised global growth estimate further reinforces the positive economic outlook.
Therefore, I think investors could consider investing in growth stocks América Móvil, S.A.B. de C.V. (AMX), Astellas Pharma Inc. (ALPMY), and Bruker Corporation (BRKR). Moreover, the stocks also pay stable dividends.
The Conference Board’s monthly Consumer Confidence Index reached 117 in July, the highest level since July 2021, surpassing expectations. This marks the third consecutive month of growth, showing an upward trend.
The positive sentiment is attributed to a robust labor market and cooling inflation, which are bolstering Americans’ outlook on the current and near-term state of the economy.
In addition, the Dow Jones Industrial Average has achieved its longest winning streak since 2017. It closed higher for 11 consecutive days and is on track for a 12-day streak. The gains, which started on July 10, have resulted in a total increase of 5.2%. This streak is being driven by robust second-quarter earnings and the hype around AI.
Market strategist Ryan Detrick believes that the current data suggests no recession is on the horizon and the broader US economy is likely to benefit from the ongoing momentum.
Moreover, the IMF raised its 2023 global growth estimate to 3.0% (up by 0.2% from the April forecast) due to strong economic activity in the first quarter of this year. The 2024 growth outlook remains unchanged at 3.0%.
Let’s explore these stocks in detail:
América Móvil, S.A.B. de C.V. (AMX)
Based in Mexico, AMX provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including local, domestic, and international long-distance services, and network interconnection services.
Over the past three years, AMX’s net income and EPS have grown at a CAGR of 53.1% and 55.5%, respectively.
On May 16, 2023, AMX’s subsidiary, Claro Enterprise Solutions announced that its comprehensive Enterprise Cloud Connect solution was now available in AWS Marketplace.
The Enterprise Cloud Connect solution is a value-added service for new or existing multiprotocol label switching (MPLS) customers that allows for seamless, quick, and cost-effective access to private or public cloud services by leveraging the MPLS network’s privacy and security features in dynamic cloud environments.
While AMX has a four-year average dividend yield of 11.31%, it pays an annual dividend of $0.27, which translates to a yield of 1.30% on the prevailing price level. The company has raised its dividends at a CAGR of 244.8% over the past three years.
AMX’s total revenues came in at MXN202.53 billion ($11.94 billion) for the second quarter that ended June 30, 2023. Its EBIT and EBITDA amounted to MXN40.31 billion ($2.38 billion) and MXN78.70 billion ($4.64 billion). Its net income rose 89.1% year-over-year to $25.88 billion ($1.53 billion).
Analysts expect AMX’s revenue to increase 11.8% year-over-year to $11.97 billion in the current fiscal quarter ending September 2023. Its EPS is expected to increase 59.8% year-over-year to $0.45 in the current quarter. Moreover, the company surpassed the revenue estimates in three of the trailing four quarters, which is impressive.
The stock has gained 15% year-to-date to close the last trading session at $20.92. Its 24-month beta is 0.06.
AMX’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Growth and Stability and a B for Value and Quality. The stock is ranked first among 44 stocks in the A-rated Telecom – Foreign industry.
Access additional POWR Ratings for AMX (Momentum and Sentiment) here.
Astellas Pharma Inc. (ALPMY)
Headquartered in Tokyo, Japan, ALPMY manufactures, markets, imports, and exports pharmaceuticals in Japan, the United States, and internationally. Its product portfolio offers treatment of prostate cancer, acute myeloid leukemia, metastatic urothelial cancer, and chronic kidney diseases.
Over the past three years, ALPMY’s revenue and levered free cash flow have grown at a CAGR of 5.3% and 19.6%, respectively.
On July 18, ALPMY and Eko Health Inc. announced that they had entered into a License & Supply Agreement for the global supply and license of Eko’s latest digital stethoscope, the CORE 500™, and a custom suite of Eko’s AI-powered cardiovascular disease detection software.
Moreover, on July 11, ALPMY announced that it had completed the acquisition of IVERIC bio, Inc. (ISEE) with respect to the announcement on April 30, 2023, through its indirect wholly-owned subsidiary Berry Merger Sub, Inc
Naoki Okamura, President and CEO of ALPMY, said, “By combining the capabilities of Astellas and Iveric Bio, we will potentially contribute to millions of patients around the world who are suffering from ophthalmologic diseases with fear of vision loss.”
ALPMY pays $0.43 annually as dividends which translates to a yield of 2.94% at the current market price. Its four-year average dividend yield is 2.59%. Its dividend payouts have grown at 5.6% CAGR over the past three years.
During the fiscal year 2022 that ended March 31, 2023, ALPMY’s revenue increased 17.2% year-over-year to ¥1.52 trillion ($10.76 billion). Its operating profit increased 17.2% year-over-year to ¥286.90 billion ($2.03 billion).
The company’s profit for the year rose 17.9% from the prior-year quarter to ¥224.62 billion ($1.59 billion). Also, its EPS grew 19.8% from the year-ago quarter to ¥123.42.
Street expects ALPMY’s revenue and EPS for the fiscal year 2023 (ending March 2024) to increase 137.3% and 84.2% year-over-year to $10.87 billion and $0.80, respectively. Additionally, the company surpassed the revenue estimates in three of the trailing four quarters.
The stock dipped marginally intraday to close the last trading session at $14.72. It has a 24-month beta of 0.36.
It’s no surprise that ALPMY has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It has an A grade for Growth, Value, and Quality and a B for Stability. Out of 166 stocks in the Medical - Pharmaceuticals industry, it is ranked #4.
In addition to the POWR Ratings we’ve stated above, we also have ALPMY’s ratings for Momentum and Sentiment. Get all ALPMY ratings here.
Bruker Corporation (BRKR)
BRKR develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions in the United States and internationally. The company operates through four segments, Bruker Scientific Instruments (BSI) BioSpin; BSI CALID; BSI NANO; and Bruker Energy & Supercon Technologies.
Over the past three years, BRKR’s revenue and EPS have grown at a CAGR of 8.8% and 22.9%, respectively.
On July 10, BRKR showcased cutting-edge magnetic resonance technology for life science and materials research at EUROMAR Conference 2023 in Scotland.
Recent orders for two 1.2 GHz Avance™ NMR spectrometers from the University of Warwick and the University of Birmingham will strengthen BRKR’s contributions to science in the UK.
These investments will enable groundbreaking research in energy storage, biofuels, protein structures, nucleic acids, carbohydrates, lipids, metabolites, cell and pathobiology research, and drug discovery.
BRKR pays $0.20 annually as dividends which translates to a yield of 0.28% at the current price. Its four-year average dividend yield is 0.30%. Its dividend payouts have grown at 7.7% CAGR over the past three years.
During the fiscal first quarter ended March 31, 2023, BRKR’s revenue increased 27.5% year-over-year to $685.30 million. Non-GAAP net income attributable to BRKR increased 27.5% year-over-year to $95.10 million, while its non-GAAP EPS increased 30.6% year-over-year to $0.64.
BRKR’s revenue is expected to increase 10.1% year-over-year to $648.05 million for the fiscal second quarter that ended June 2023. Its EPS is expected to increase 7.6% year-over-year to $0.48 in the same quarter. Also, it has surpassed revenue estimates in three of the trailing four quarters.
Shares of BRKR have gained 18.4% over the past nine months to close the last trading session at $71.95.
BRKR’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
The stock has an A grade for Growth and a B in Value, Stability, and Quality. It is ranked first in the 51-stock Medical - Diagnostics/Research industry.
Beyond what is stated above, one can access BRKR’s additional ratings for Momentum and Sentiment here.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these “death trap” stocks are lurking in your portfolio:
AMX shares were trading at $20.98 per share on Wednesday morning, up $0.06 (+0.29%). Year-to-date, AMX has gained 16.74%, versus a 19.79% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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