The benchmark indices ended last week in the red, with the S&P 500 posting its worst week since 2020. The indices have been under pressure amid the rising inflation and the Fed’s aggressive tightening of monetary policy.
With the inflation hitting a fresh four-decade high in May despite two rounds of interest rate hikes, and the war in Ukraine wreaking havoc on global commodities markets, the volatility is expected to continue for a while.
Though the situation is frightening, with most experts expecting the economy to witness a recession, Fed Chair Jerome Powell said it is still possible for the central bank to achieve a “soft landing,” in which the Fed brings down inflation without causing a recession.
Despite the market turbulence, we think investors should scoop up under-$5 stocks Assertio Holdings, Inc. (ASRT), ARC Document Solutions, Inc. (ARC), and Blueknight Energy Partners, L.P. (BKEP), which possess solid fundamentals. These stocks are rated Strong Buy in our proprietary POWR Ratings system.
Assertio Holdings, Inc. (ASRT)
ASRT, a specialty pharmaceutical company, provides medicines in neurology, hospital, and pain and inflammation.
ASRT’s total revenue increased 36.1% from the prior-year quarter to $36.54 million in the fiscal quarter ended March 31, 2022. Income from operations for the quarter came in at $11.56 million, reflecting an increase of 54% year-over-year.
The company’s net income stood at $9.06 million, up 99.5% year-over-year. Its net income per share increased 66.7% from its year-ago value to $0.20.
Analysts expect ASRT’s revenue for the fiscal quarter ending June 2022 to come in at $31.78 million, indicating an increase of 25.2% year-over-year. Also, the company’s revenue is expected to grow 18.7% year-over-year to $131.73 million in the ongoing fiscal year.
Over the past nine months, the stock has gained 198.9% to close yesterday’s trading session at $2.78. It gained 62.6% over the past year.
ASRT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to 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.
ASRT also has an A grade in Growth, Value, Sentiment, and Quality. It is ranked #9 of 167 stocks in the Medical - Pharmaceuticals industry.
Beyond what is stated above, we’ve also rated ASRT for Momentum and Stability. Get all the ASRT ratings here.
ARC Document Solutions, Inc. (ARC)
ARC, a digital printing company, provides digital printing and document-related services in the United States.
For the fiscal quarter ended March 2022, ARC’s net sales increased 12.6% year-over-year to $69.49 million. Its gross profit grew 19.5% from the year-ago value to $22.45 million. Net income for the quarter stood at $1.86 million, reflecting a 203.3% increase year-over-year. Moreover, its EPS was $0.05, up 150% from the prior-year quarter.
The company surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has gained 19.5% over the past year to close the last trading session at $2.64.
ARC’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to Strong Buy in our proprietary rating system.
The company also has an A grade in Value and Quality and a B in Growth and Sentiment. The stock is ranked #1 of 44 in the B-rated Outsourcing - Business Services industry. To get ARC’s ratings for Momentum and Stability, click here.
Blueknight Energy Partners, L.P. (BKEP)
BKEP provides integrated terminalling services for companies engaged in producing, distributing, and handling liquid asphalt in the United States.
BKEP’s total revenue increased 5.1% year-over-year to $28.46 million in the fiscal first quarter of 2022. Its operating income grew 3.8% from the year-ago value to $7.49 million, while its adjusted non-GAAP EBITDA from continuing operations improved 1.5% year-over-year to $11.54 million.
BKEP’s shares have gained 40.3% over the past nine months and 36.5% year-to-date to close the last trading session at $4.51.
The stock's overall A rating translates to Strong Buy in our proprietary rating system. BKEP has a B grade in Growth, Value, Sentiment, and Quality.
Within the A-rated MLPs - Other industry, it is ranked #4 of 12 stocks. Click here to see additional POWR Ratings for Momentum and Stability for BKEP.
ASRT shares were trading at $2.78 per share on Monday morning, up $0.02 (+0.72%). Year-to-date, ASRT has gained 27.52%, versus a -22.73% 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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