If these stocks aren't on your watchlist, take notes...
Two stocks to add into your portfolio at open tomorrow!
Sometimes we believe our portfolios are set. When it comes to options however you should always be on the lookout for new plays. We have you covered with two more stocks to watch for! We provide the fundamental and technical analysis for you, entering option contracts or buying into the stock is STRICTLY up to you.
This is not professional advice from a financial broker - Please keep this in mind…
ExxonMobil Corporation - $XOM
Exxon Mobil Corporation is engaged in the energy business. The Company's segments include Upstream, Downstream, and Chemical.
The Upstream segment is organized and operates to explore for and produce crude oil and natural gas.
The Downstream segment manufactures, trades, and sells petroleum products.
The refining and supply operations encompass a global network of manufacturing plants, transportation systems, and distribution centers that provide a range of fuels, lubricants, and other products and feedstocks to its customers around the world.
The Chemical segment is organized and operates to manufacture and sell petrochemicals.
$XOM passes the forecast test provided by Wall Street Zen and wouldn’t be a great bet when added to a long-term portfolio. However, we are looking at what could possibly happen during earnings that are reported this week, April 29th.
Why are we betting on ExxonMobil?
A few green flags are raised with ExxonMobil earnings:
$XOM has beaten out its last four earnings call and with this week’s earnings having an EPS forecast of $2.23, we are in for some more great news. We expect ExxonMobil to outperform the Wall Street estimates.
ExxonMobil is trading at a good value based on its Price to Earnings and rate of earnings growth, measured by a PEG ratio of 0.81x.
Technicals are giving $XOM the “Buy” rating and analysts also follow the trend with a 1-year price target of $96.85.
April has seen three separate cases of house trading as well with 2 of 3 being purchases (Representative Virginia Foxx - Purchase - on April 5, Representative Kevin Hern - Purchase - on April 12, and Representative John Rutherford - Purchase - on April 14).
ExxonMobil has also very recently had some corporate lobbying done. On April 20, 2022, they spent $2.05 Million on lobbying for the issues of Transportation Taxation/Internal Revenue Code Natural Resources Fuel/Gas/Oil Foreign Relations Environment/Superfund Energy/Nuclear Chemicals/Chemical Industry.
Walmart Inc. - $WMT
You obviously know what Walmart is and its function within America. Walmart Supercenters offer a one-stop shopping experience by combining a grocery store with fresh produce, a bakery, deli, and dairy products with electronics, apparel, toys and home furnishings.
Walmart passes the forecast test provided by Wall Street Zen and with earnings roughly a month away it is a great short-term play. In long term, considering its massive growth, dividends, and the almost impossible chances of them becoming irrelevant, I would add it to your long-term portfolio.
Why are we betting on Walmart?
$WMT gives a few indications of being a great all-around stock.
With earnings on May 17th, we can look back at their last four earnings where they outperformed Wall Street estimates even during the Covid pandemic. With the pandemic coming to a slow down and countries getting closer to recovery, Walmart will more than likely surpass estimates once again.
Recently, $WMT has had its play in corporate lobbying. On April 20, 2022, Walmart paid $60,000 in lobbying for the issues of Trade (domestic/foreign) Copyright/Patent/Trademark Consumer Issues/Safety/Products Taxation/Internal Revenue CodeTrade (domestic/foreign) Copyright/Patent/Trademark Consumer Issues/Safety/Products Taxation/Internal Revenue Code.
$WMT is trading below its intrinsic value of $182.28, according to an updated version of Benjamin Graham's Formula from “The Intelligent Investor.”
Technicals label Walmart as a “Buy” and analysts also follow this trend. Analysts have added a 1-year price target of $165.90.
With the stock trading down from its price target, beating estimates could initiate a slight jump closer to the given price target.