Stock Picks
Pandemonium is about to set in; Fear is running rampant as interest rates are set to skyrocket globally, the stock market is about to crash. Or is it???
We all know these mainstream phrases all too well by now, but luckily as the EasyVSTR crowd knows, when fear in the market sets in, be patient and look for great opportunities to follow!
EasyResearch looks at 2 stocks across EasyWallets to keep an eye on:
EasyAUD
AGL Energy Limited operates across Customer Markets, Integrated Energy, and Investments and supplies energy and services to Australia's residential, business, and wholesale customers.
This energy emitter has been on one hell of a downward slope over the last year, and despite losing over 30% in share value, could be on every “Buy the Dip” enthusiast radar at the start of 2022.
Recent broker upgrades on the stock coupled with rising commodity prices in coal and natural gas have seen renewed interest in breaking the current downtrend and seen the share price gain 19% YTD. One other thing to note is that this stock has been a dividend heavyweight over the last couple of years, and with an 8.89% annual dividend yield, I am sure EasyVSTRs will take note.
- Share Price: AU$ 7.30
- Market Cap: AU$ 4.90 billion.
- P/E Ratio: N/A
- P/B Ratio: 0.9x
- Dividend (Annual Yield %): 8.89%
- Franking: N/A%
- 52 Week range low of AU$ 5.10 and AU$ 11.96 shares high.
Wall Street heavyweights like Black Rock’s Larry Fink is that the firm will continue to hold and invest in Australia ASX 200 oil and gas companies. This is great news for energy companies like AGL and recent rating upgrades by Credit Suisse to outperform this year, which has its price target firmly at AU$8.50 per share.
The current outlook on AGL is that the stock is trading at a discount to fair value, and earnings might face some headwinds over 2022 due to higher fuel prices and regulators. But with electricity prices increasing over the medium term and slowing renewable energy supply, AGL Energy holds excellent long-term value for investors.
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EasyUSD
Berkshire Hathaway Inc-Cl B (BRKB)
Value investing has been pushed to the forefront at the start of the new year, and there is no other company that personifies value investing like Berkshire Hathaway.
The Oracle of Omaha needs no introduction and has been at the helm of Berkshire Hathaway since the 60s and has grown the conglomerate into a force to be reckoned with. The company is well-diversified and operates through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses across the globe.
- Share Price: $ 305.22
- Market Cap: $ 682.20 billion.
- P/E Ratio: 8.1x
- P/B Ratio: 1.4x
- Dividend (Annual Yield %): N/A
- 52 Week range low of $ 226.10 and $ 324.40 share high.
The financial conglomerate is no boring investment choice due to its range of subsidiaries and investment portfolio, which has seen operating income in Q3 rose by 18% over the same quarter.
Demand is picking up to pre-pandemic levels, which has also seen its operating earnings from its railroad, utilities, and energy segments grow by 11% year over year in Q3.
The outlook, Operating income over the coming quarters will be the metric to watch for continued growth along with Berkshire’s cash stockpiles, which are sitting at record levels. “At the end of September, Berkshire’s cash pile reached a record $149.2 billion, up from $144.1 billion in the second quarter” – Yun Li.
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Sources – EasyResearch, Berkshire Hathaway, Toby Bordelon, Lou Whiteman, Reuters, CNBC, Robin Hartill, Australian Securities Exchange (ASX), AGL Energy Limited, Morningstar, Emma Rapaport, Adrian Atkins, Shaun Ler, Koyfin
Follow Barry Dumas
@BEEF_FINMARKETS
Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
