5 Best Affordable Stocks to Buy Now

In this article, we will discuss 5 best affordable stocks to buy now. If you want a detailed analysis of the current US stock market and economy, go to 10 Best Affordable Stocks to Buy Now.

5. Univar Solutions Inc. (NYSE:UNVR)

Price as of August 3: $25.71

Univar Solutions Inc. (NYSE:UNVR) is a Washington-based global chemical manufacturer. It is the second-largest value-added chemical distributor in the world, with more than 100,000 customers across 130 countries. On August 2, Univar Solutions Inc. (NYSE:UNVR) reported its second-quarter 2022 earnings and raised full-year EBITDA guidance for FY2022. The company posted a non-GAAP EPS of $1, exceeding the consensus of $0.90. Revenue estimates of $2.95 billion also lagged behind the actual revenues of $3.02 billion. The adjusted EBITDA was recorded at $291.6 million compared to $197.5 million in the same quarter last year. Additionally, the company expects its adjusted EBITDA to increase between $1.04 billion and $1.08 billion in FY2022.

On August 1, Univar Solutions Inc. (NYSE:UNVR) announced the acquisition of Vicom Distribucion Productos Quimicos, a Spanish speciality chemical distributor. The acquisition’s main purpose is to expand the company’s well-established sub-segment and to ground itself in the European market.

On July 13, BofA analyst Steve Byrne maintained a Buy rating on Univar Solutions Inc. (NYSE:UNVR)’s shares and lowered the price target to $34 from $36.

Here is what Rhizome Partners had to say about Univar Solutions Inc. (NYSE:UNVR) in its Q1 2022 investor letter:

“Univar Solutions reported excellent results for the full year of 2021. More important, the company guided to $860-$890 million of EBITDA and $430-$445 million of free cash flow in 2022, with a net debt/EBITDA ratio between 2.0-2.5 times. The year 2022 will be the first normal year without any integration-related costs. We estimate that our cost basis in Univar is roughly 5.7 times 2022 P/FCF, with some lots purchased as low as 3.4 times during the Covid lows. We wish every high-quality business in our portfolio could be bought as cheaply as Univar.”