February 5, 2023

While a 2023 recession seems inevitable amid ongoing macroeconomic headwinds, experts think it is mild. In addition, quality stocks Stellantis (STLA), Albertsons Companies (ACI), Poseida Therapeutics (PSTX) and Civeo (CVEO) could now be ideal buys under $30 amid high expectations for a Santa rally. Keep reading….



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Amid widespread macroeconomic headwinds, recession fears are running rampant. The unemployment rate is expected to reach 4.4% by the end of 2023. While a recession seems imminent, it is expected to be mild.

In addition, markets are still hoping for a year-end rally. SEI Chief Investment Officer Jim Smigiel previously had the option of a Sinterklaas rally.

Additionally, CNBC’s Jim Cramer recently reassured investors by saying, “There’s still a Santa Claus rally coming up.” The S&P 500 has historically gained the most during the last week of December and the first week of January, providing optimism for the weeks to come.

Given the background, we think that quality shares Stellantis NV (STLA), Albertsons Companies, Inc. (ACI), Poseida Therapeutics, Inc. (PSTX) and Civeo Corporation (CVEO) could now be ideal purchases under $30.

Stellantis N.V. (STLA)

Headquartered in Hoofddorp, the Netherlands, STLA designs, develops, manufactures, distributes and markets automobiles and light commercial vehicles, engines, transmission systems, metallurgical products and manufacturing systems worldwide.

On December 23, 2022, STLA announced its plans to acquire a stake in Symbio, a hydrogen company owned by Faurecia Michelin and a leader in fuel cell technologies for the mobility industry.

Also, on December 22, 2022, STLA acquired aiMotive, a leading developer of advanced artificial intelligence and autonomous driving software. Such lucrative acquisitions are expected to bolster the company’s future productivity.

STLA’s consolidated shipments totaled 1,281,000 units for the third quarter of 2022, up 13.3% year-over-year. Net income was €42.10 billion ($44.70 billion), up 29.1% year-over-year, while STLA net income in North America was €21.07 billion ($22.37 billion ), an increase of 35.7% year-on-year.

STLA’s EV/Sales forward of 0.14x is 87.5% lower than the industry average of 1.12x. The expected price/sell price of 0.25x is 70.4% lower than the industry average of 0.83x.

For fiscal 2022, STLA’s revenue and EPS are expected to grow 9.3% and 2.5% year over year to $187.95 billion and $5.77, respectively. The stock gained 8.6% over the past three months and 5.6% over the past six months to close out the last trading session at $13.88.

STLAs POWR ratings reflect this promising outlook. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. The POWR Ratings rate stocks on 118 different factors, each with its own weighting.

The stock also has an A rating for value and a B for stability and sentiment. Within the Car and vehicle manufacturers industry, it ranks number 8 out of 62 stocks. Click here for the additional POWR assessments for growth, momentum and quality for STLA.

Albertsons Companies, Inc. (ACI)

ACI and its subsidiaries operate food and drug stores in the United States. The company’s food and drug stores offer groceries, general merchandise, health and beauty products, pharmacy, fuel and other items and services.

On November 10, 2022, ACI launched its new premium Vinaforé collection. The private label collection consists of five distinctively designed varietals from some of the best wine regions in the world and is expected to provide customers with a sparkling wine experience.

ACI’s net sales and other revenues were $17.92 billion for the second quarter ended September 10, 2022, an increase of 8.6% year over year. Adjusted net income was $418.30 million, up 13.2% year-over-year, while adjusted earnings per share were $0.72, up 12.5% ​​year-over-year.

ACI’s EV/Sales forward of 0.29x is 82.4% lower than the industry average of 1.66x. The expected price/sell price of 0.15x is 86.6% lower than the industry average of 1.09x.

ACI’s revenue is estimated to grow 6.9% year-over-year to $76.85 billion by 2023. Earnings per share are estimated to grow 8% annually over the next five years. It beat EPS estimates in all four subsequent quarters. The stock is up 2.1% over the past month and 6.6% over the past three months to close out the last trading session at $20.98.

ACI’s overall A rating equates to a strong buy in our POWR rating system. It has an A rating for Value and a B for Sentiment and Quality. It is number 6 out of 39 stocks in the A rating Grocery / Big Box Retailers industry.

In addition to what has been stated above, we also assessed ACI for growth, momentum and stability. Get all ACI ratings here.

Poseida Therapeutics, Inc. (PSTX)

The clinical stage biopharmaceutical company PSTX is focused on developing therapies for patients with high unmet medical needs.

On November 10, 2022, Mark Gergen, the CEO of PSTX said, “Despite the macroeconomic and market challenges facing our industry, we remain focused on executing on our top priorities.”

He added, “We are excited about our collaborations with Takeda and Roche, which are already starting to bear fruit as we reached our first clinical milestone under the Roche collaboration.”

PSTX’s net income was $70.41 million for the third quarter ended September 30, 2022, compared to a loss of $42.42 million in the year-ago period. Earnings per share were $0.92 compared to a loss per share of $0.68 in the prior period.

In addition, total assets were $380.48 million for the period ended September 30, 2022, compared to $269.31 million for the period ended December 31, 2021.

PSTX’s EV/Sales forward of 1.50x is 60.1% lower than the industry average of 3.77x. The expected price/sales of 2.57x is 38.8% lower than the industry average of 4.19x.

PSTX revenue is expected to grow 466.8% year-over-year to $177.07 million in 2022. Earnings per share are expected to grow 78.1% year-over-year in 2022. It beat earnings per share estimates in three of the four lagging quarters. The stock is up 17.4% last month and 65.3% over the past three months to close out the last trading session at $5.14.

PSTX has an overall A rating, which equates to a strong buy in our proprietary rating system. In addition, it has an A grade for growth and a B for value, sentiment and quality.

PSTX is ranked number 9 out of 159 stocks in the Medical – Pharmaceuticals industry. Click here to see PSTX’s ratings for Momentum and Stability.

Civeo Corporation (CVEO)

CVEO provides hospitality services to the natural resources industry in Canada, Australia and the United States. The company develops lodges and villages and mobile accommodations.

On 15 November 2022, CVEO was awarded a five-year contract with a leading resource player to provide integrated services in six villages across Western Australia.

The new contract includes accommodation, catering and retail services; cleaning services for villages, mines and harbor areas; maintenance of facilities; and health and wellness solutions. CVEO will provide first-class customer service under this contract, strengthening its customer base.

CVEO’s total revenues were $184.23 million for the third quarter ended September 30, 2022, an increase of 18.8% year over year. Net income was $5.22 million, a significant year-over-year increase.

Also, cash and cash equivalents were $8.36 million for the period ended September 30, 2022, compared to $6.28 million for the period ended December 31, 2021.

CVEO’s EV/Sales forward of 0.91x is 44.5% lower than the industry average of 1.63x. The expected price/sale of 0.61x is 51.5% lower than the industry average of 1.25x.

Street expects CVEO revenue to grow 14.7% year-over-year to $681.72 million in 2022. EPS is expected to grow 625% year-over-year to $0.21 in 2022. It surpassed earnings per share estimates in three of the next four quarters. The stock gained 2.2% last month and 14% over the past three months to close out the last trading session at $29.94.

CVEO has an overall A rating (Strong Buy) in our POWR Ratings system. It has an A grade for Sentiment and a B for Value, Stability and Quality.

CVEO is number 2 out of 43 stocks in the B rating Outsourcing – Business Services industry. Click here to review additional CVEO (growth and momentum) assessments.


STLA shares rose $0.09 (+0.65%) during premarket trading on Friday. Year-to-date, STLA is down -26.01%, versus an increase of -18.54% in the benchmark S&P 500 index over the same period.


About the author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary.

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