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4 Stocks for Beginners to Get Their Investment Journey Started

November 17
11:48 2022

The Fed’s aggressive rate hikes finally dragged inflation down slightly in October. The consumer price index increased 7.7% year-over-year last month, lower than analyst estimates. Moreover, wholesale prices rose less than expected in October. The producer price index rose 0.2% for the month, against the Dow Jones estimate of 0.4%.

Easing inflation has boosted investors’ confidence in the market, as evident from the S&P 500’s 6.5% surge over the past five days. Moreover, CNBC’s Jim Cramer believes the stock market’s current rally could last through the middle of next month.

While the Fed’s future actions and a possible recession could keep the market under pressure, quality stocks AT&T Inc. (T – Get Rating), Celestica Inc. (CLS – Get Rating), trivago N.V. (TRVG – Get Rating), and Overseas Shipholding Group, Inc. (OSG – Get Rating), which are currently trading under $20, might be ideal investments for beginners.

AT&T Inc. (T – Get Rating)

T is a telecommunication, media, and telecommunication services provider. The company operates through the Communications and Latin America segments. It operates AT&T, Cricket, AT&T PREPAID, AT&T Fiber, and Unefon brand names.

On September 30, T declared a quarterly dividend of $0.2775 per share on the company’s common shares. The company also declared dividends on its 5.000% Perpetual Preferred Stock, Series A, and the 4.750% Perpetual Preferred Stock, Series C. This reflects on its cash generation ability.

On September 9, it was reported that Lockheed Martin Corporation (LMT) and T had securely and rapidly transferred UH-60M Black Hawk health and usage data through T’s 5G private cellular network and LMT’s 5G.MIL multi-site pilot network in a test conducted in August at LMT’s Sikorsky headquarters. This is expected to benefit the company in the future.

For the fiscal third quarter of 2022, T’s net income increased 2% year-over-year to $6.40 billion. Its free cash flow rose marginally year-over-year to $3.84 billion. Adjusted EPS improved 3% year-over-year to $0.68. Adjusted EBITDA margin came in at 35.7% as compared to 34.5% in the prior-year period.

Analysts expect T’s revenue and EPS for the current year (fiscal 2022) to come in at $128.73 billion and $2.67, respectively. In addition, the company has an impressive surprise earning history, as it has topped consensus EPS estimates in all trailing four quarters.

The stock has gained 3.4% over the past three months and 26.9% over the past month to close its last trading session at $19.02.

T’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

T has a Value, Sentiment, and Quality grade of B. In the 20-stock Telecom – Domestic industry, it is ranked #4.

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

Continue Reading at StockNews.com

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