The Consumer Price Index (CPI) for December increased 6.5% year-over-year while decreasing 0.1% for the month. The cooling inflation numbers have raised optimism. Additionally, according to the University of Michigan Surveys of Consumers, the one-year inflation expectation fell to a preliminary reading of 4.0% in January, down from 4.4% in December 2022.
Also, the overall Consumer Sentiment Index jumped to 64.6, up 8.2% from December's value of 59.7, indicating increased consumer confidence. Furthermore, according to Goldman Sachs' 2023 forecast, despite lingering headwinds, the S&P 500 is expected to return between 9-12% this year.
Therefore, quality stocks Nokia Oyj (NOK), Ferroglobe PLC (GSM), Assertio Holdings, Inc. (ASRT), ARC Document Solutions, Inc. (ARC), and GEE Group Inc. (JOB) could be wise additions to your portfolio. These stocks are currently trading under $6.
Nokia Oyj (NOK)
Headquartered in Espoo, Finland, NOK provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments Mobile Networks; Network Infrastructure; Cloud and Network Services; and Nokia Technologies.
On December 12, 2022, NOK and O2 Telefónica Germany reported the successful aggregation of sub-6 GHz spectrum frequencies in an industry-first two-component carrier uplink Carrier Aggregation (CA) testing on 5G Standalone.
NOK's forward EV/Sales of 0.91x is 66.8% lower than the industry average of 2.75x. Its forward Price/Sales multiple of 1.07 is 61.1% lower than the industry average of 2.74. NOK's EBIT margin of 8.73% is 31.9% higher than the 6.62% industry average, while its EBITDA margin of 12.53% is 7.4% higher than the industry average of 11.67%.
NOK's net sales came in at €6.24 billion ($23.79 billion) for the third quarter that ended September 30, 2022, increasing 15.6% year-over-year. Moreover, its net profit came in at €428 million ($4.46 million), up 21.9% year-over-year. Also, its EPS came in at €0.08, representing an increase of 33.3% year-over-year.
NOK's revenue is expected to increase marginally year-over-year to $26.09 billion in 2023. Its EPS is expected to grow 9.5% year-over-year to $0.46 in 2023. It surpassed EPS estimates in three out of four trailing quarters. Over the past three months, the stock has gained 11.3% to close the last trading session at $5.03.
NOK's strong fundamentals are reflected in its POWR Ratings. The stock's overall B rating indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
NOK has an A grade for Value and a B for Sentiment. In the B-rated Technology - Communication/Networking industry, it is ranked #8 out of 49 stocks. Click here for the additional POWR Ratings for Stability, Growth, Momentum, and Quality for NOK.
Ferroglobe PLC (GSM)
Headquartered in London, GSM is one of the world's largest silicon metal producers, and its alloys and manganese alloys operate across the United States, Europe, and internationally.
On November 16, 2022, Dr. Marco Levi, CEO, said, "Despite a difficult environment during the third quarter, Ferroglobe continues to perform well, generating robust sales and healthy profitability. The various initiatives that we have implemented over the past two years have enabled us to perform well during challenging periods and declining prices."
GSM's forward EV/Sales of 0.45x is 70.8% lower than the industry average of 1.54x. Its forward Price/Sales multiple of 0.34 is 71% lower than the industry average of 1.18. GSM's gross profit margin of 49.72% is 61.3% higher than the 30.82% industry average, while its EBITDA margin of 29.04% is 41.9% higher than the industry average of 20.47%.
GSM's sales came in at $593.22 million for the third quarter that ended September 30, 2022, up 38.2% year-over-year. Its operating profit came in at $154.42 million, up 1,271.4% year-over-year. Also, its adjusted EBITDA increased 392.9% year-over-year to $185.29 million.
Analysts expect GSM's revenue to be $1.92 billion in 2023. GSM's EPS is expected to grow 20% per annum for the next five years. Over the past month, the stock has gained 23.8% to close the last trading session at $4.84.
GSM's overall B rating equates to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Momentum and Quality. It is ranked #5 out of 37 stocks in the Industrial - Metals industry.
Beyond what is stated above, we've also rated GSM for Stability, Growth, and Sentiment. Get all GSM ratings here.
Assertio Holdings, Inc. (ASRT)
Specialty pharmaceutical company ASRT provides medicines in neurology, hospital, and pain and inflammation. Its pharmaceutical products include INDOCIN, CAMBIA, Zipsor, SPRIX, and Otrexup.
ASRT's forward EV/Sales of 1.35x is 67.9% lower than the industry average of 4.20x. Its forward Price/Sales multiple of 1.32 is 72.4% lower than the industry average of 4.78. ASRT's gross profit margin of 87.84% is 59% higher than the 55.24% industry average, while its EBITDA margin of 62.36% is 1573.7% higher than the industry average of 3.73%.
ASRT's total revenue came in at $34.21 million for the third quarter that ended September 30, 2022, up 34.3% year-over-year. Its net product sales increased 31.9% year-over-year to $34.28 million. Moreover, its net income came in at $4.17 million, representing an increase of 11.7% year-over-year.
Dan Peisert, ASRT's President and CEO, said, "Third quarter results demonstrated the value of our platform. Our recent Sympazan transaction exemplifies our goal of acquiring assets that fit into our platform, are immediately accretive, have long-duration exclusivity, and offer opportunities for organic growth."
Street expects ASRT's revenue to increase 32.5% year-over-year to $147.07 million for the yet-to-be-reported fiscal year 2022. Its EPS is expected to grow 25% per annum for the next five years. ASRT's shares have gained 84.6% over the past three months to close the last trading session at $4.19.
It's no surprise that ASRT has an overall B rating equating to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Growth and Quality. The stock is ranked #24 out of 168 in the Medical – Pharmaceuticals industry.
We've also rated ASRT for Momentum, Stability, and Sentiment. Get all ASRT ratings here.
ARC Document Solutions, Inc. (ARC)
Digital printing company ARC provides digital printing and document-related services in the United States. It provides managed print services, cloud-based document management software, and other digital hosting services.
On November 2, 2022, Suri Suriyakumar, Chairman and CEO, said, "The strategy we put in place during 2019 created opportunities for ARC to grow in virtually any environment, primarily because we made diversity and resilience the keys to our success."
ARC's trailing-12-month EV/Sales of 0.72x is 59.4% lower than the industry average of 1.78x. Its trailing-12-month Price/Sales multiple of 0.52 is 61.4% lower than the industry average of 1.35. ARC's gross profit margin of 33.20% is 14.3% higher than the 29.06% industry average, while its Levered FCF margin of 9.77% is 187.1% higher than the industry average of 3.40%.
ARC's net sales came in at $73.14 million for the third quarter that ended September 30, 2022, up marginally year-over-year. Its net income increased 18.1% year-over-year to $3.74 million. In addition, its EPS increased 12.5% year-over-year to $0.09.
Over the past three months, the stock has gained 54.4% to close the last trading session at $3.55.
ARC's strong fundamentals are reflected in its POWR Ratings. It has an overall A rating, equating to a Strong Buy in our proprietary rating system.
It has an A grade for Value, Sentiment, and Quality. It is ranked first among 41 stocks in the B-rated Outsourcing - Business Services industry. To see ARC's ratings for Growth, Stability, and Momentum, click here.
GEE Group Inc. (JOB)
JOB provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two business segments: Industrial Staffing Services and Professional Staffing Services.
JOB's forward EV/Sales of 0.28x is 84.3% lower than the industry average of 1.79x. Its forward Price/Sales multiple of 0.37 is 72.1% lower than the industry average of 1.33. JOB's gross profit margin of 37.36% is 28.6% higher than the 29.1% industry average, while its Levered FCF margin of 6.86% is 101.8% higher than the industry average of 3.40%.
JOB's net revenue increased marginally year-over-year to $41.52 million for the fourth quarter ended September 30, 2022. Also, its current assets came in at $42.22 million for the period ended September 30, 2022, compared to $33.69 million for the period ended September 30, 2021, while its current liabilities came in at $15.58 million, compared to $31.16 million in the prior year.
JOB's revenue is expected to increase marginally year-over-year to $165.82 million in 2023. JOB's shares have gained marginally intraday to close the last trading session at $0.54.
JOB's overall B rating equates to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Quality. It is ranked #8 out of 21 stocks in the A-rated Outsourcing - Staffing Services industry.
Click here to see the additional POWR Ratings for Growth, Momentum, Sentiment, and Stability for JOB.
NOK shares were trading at $4.82 per share on Tuesday afternoon, down $0.21 (-4.17%). Year-to-date, NOK has gained 3.88%, versus a 4.08% rise in the benchmark S&P 500 index during the same period.
About the Author: RashmiKumari
Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.
5 Stocks Under $6 for 2023 StockNews.com
