3 “Strong Buy” Stocks Still Down More Than 30% in 2022

Since investors await the Federal Reserve’s signal on its future course of action on the interest rate hike front at the Jackson Hole conference later this week, the market is expected to remain volatile. Many economists expect the Federal Reserve to maintain its hawkish stance in the upcoming months as inflation remains elevated.

Moreover, the 40-year high inflation in the UK, weakening economic data in China, and rising global food prices are adding to investors’ concerns. Barring occasional rallies, the market turbulence caused by the macroeconomic and geopolitical headwinds has led to many quality stocks witnessing sharp declines since the beginning of the year.

Fundamentally sound stocks Bluegreen Vacations Holding Corporation (BVH), Mannatech, Incorporated (MTEX), and Educational Development Corporation (EDUC) are still down more than 30% year-to-date. However, they are rated Strong Buy in our proprietary POWR Ratings system.

Bluegreen Vacations Holding Corporation (BVH)

BVH functions as a vacation ownership company. It markets and sells vacation ownership interests (VOI) and manages resorts in leisure and urban destinations, including Orlando, Las Vegas, Myrtle Beach, Charleston, New Orleans, and others.

BVH's total revenue increased 22% year-over-year to $235.60 million for the first quarter ending June 30, 2022. System-wide sales of VOIs increased 21% from its prior-year quarter to $198.5 million. Its net income amounted to $17.80 million, while its adjusted EBITDA came in at $34.70 million over the period. The company's EPS stood at $0.87 over the period.

The consensus EPS estimate of $1.21 for the third quarter ending September 2022 represents a 5.6% improvement year-over-year. Analysts expect the company’s revenue to increase 10.5% year-over-year to $237.07 million for the third quarter ending September 2022. The stock has declined 33.9% year-to-date.

BVH’s POWR Ratings reflect this promising outlook. The company has an overall rating of A, which translates to Strong 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 Value and Quality and a B for Sentiment. Within the B-rated Travel - Hotels/Resorts industry, it is ranked #1 of 21 stocks.

To see additional POWR Ratings for Momentum, Stability, and Growth for BVH, click here.

Mannatech, Incorporated (MTEX)

MTEX operates as a health and wellness company internationally. It develops, markets, and sells nutritional supplements, topical and skin care, anti-aging, and weight-management products. The company primarily sells its products directly and through e-commerce and network marketing channels.

For the second quarter ending June 30, 2022, MTEX’s net sales amounted to $34.98 million. Its income from operations came in at $853.00 million, while its net income stood at $694.00 million over the period. The company’s EPS stood at $0.34 over the period. The stock has plunged 36.1% year-to-date.

MTEX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our rating system. The stock also has an A grade for Growth and Value and a B for Sentiment. Within the Consumer Goods industry, it is ranked #1 of 70 stocks.

In total, we rate MTEX on eight different levels. Beyond what we've stated above, we have also given MTEX grades for Momentum, Quality, and Stability. Get all the MTEX ratings here.

Educational Development Corporation (EDUC)

EDUC operates as a trade co-publisher of educational children's books in the United States. It has two operational segments, Publishing and Usborne Books & More (UBAM). 

The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, foreign language books, and internet-linked books.

In the first quarter ending May 31, 2022, EDUC’s net revenues amounted to $23.16 million. The company’s earnings before income taxes amounted to $0.28 million for the quarter. Its net earnings came in at $1.36, while its EPS stood at $0.03 over the period.

The company’s shares have declined 67.4% over the past year.

It is no surprise that EDUC has an overall A rating, equating to Strong Buy in our POWR Ratings system. EDUC has a B grade for Momentum, Value, and Quality. In the Entertainment - Publishing industry, it is ranked #1 of 11 stocks

Click here to see the additional POWR Ratings for EDUC (Growth, Stability, and Sentiment).

BVH shares were trading at $23.13 per share on Wednesday morning, down $0.08 (-0.34%). Year-to-date, BVH has declined -33.32%, versus a -12.54% rise in the benchmark S&P 500 index during the same period.

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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