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.”
4. Teck Resources Limited (NYSE:TECK)
Price as of August 3: $28.04
Teck Resources Limited (NYSE:TECK) is a Canadian minerals and mining company. The company’s main operations revolve around coal, zinc, and copper. The company also has an engagement in solar energy.
At the end of the second quarter of 2022, Teck Resources Limited (NYSE:TECK) reported an adjusted profit attributable to shareholders of C$1.8 billion or C$3.3 per share. The adjusted EBITDA was recorded at C$3.3 billion, representing almost a 300% YoY growth. Moreover, the company generated a CFO of C$2.9 billion and exited the quarter with C$8.4 billion in liquidity, including C$3.3 billion in cash.
As of August 3, Teck Resources Limited (NYSE:TECK) has a dividend yield of 1.39% and a 3.54 P/E ratio. On July 27, the company announced a quarterly dividend of C$0.125 per share, payable on September 29. Furthermore, the company also authorized a share repurchase program of $500 million in the second quarter of 2022.
3. Halliburton Company (NYSE:HAL)
Price As of August 3: $28.43
Halliburton Company (NYSE:HAL) is a global oil and gas equipment company specializing in hydraulic fracturing operations. According to the Insider Monkey database, the firm was part of 47 hedge fund portfolios in the first quarter of 2022, compared to 43 in the previous quarter.
For the second quarter of 2022, Halliburton Company (NYSE:HAL) reported an EPS of $0.49, compared to $0.44 estimates. The revenue of $5.07 billion represented a 36.88% YoY growth and outperformed the estimates by $368.54 million. Moreover, the company recorded $215 million in free cash flow for the second quarter. The company has also reduced its debt by $600 million since the beginning of the year.
On July 15, Bank of America revised ratings and price targets for several oil and gas companies including Halliburton Company (NYSE:HAL). BofA sees a positive outlook for the international market and believes that it is set for accelerated growth in the second half of 2022 and 2023. For Halliburton Company (NYSE:HAL), BofA maintained a Buy rating on the stock and slashed the price target to $34 from $47.
As of July 2, Halliburton Company (NYSE:HAL) has a dividend yield of 1.64% with an annualized dividend payout of $0.48. The last quarterly dividend was valued at $0.12 per share and was paid out on June 22.
2. GFL Environmental Inc. (NYSE:GFL)
Price as of August 3: $28.50
GFL Environmental Inc. (NYSE:GFL) is a Canadian waste management company. The company provides collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste services to its customers. On August 2, TD Securities analyst Tim James reaffirmed a Buy rating on GFL Environmental Inc. (NYSE:GFL)’s shares and raised his price target to C$55 from C$53.
GFL Environmental Inc. (NYSE:GFL) posted strong Q2 results with an EPS of $0.19, compared to $0.15 estimates. The company generated revenues of $1.33 billion, representing a 27% YoY growth and beating the forecasts by $116.97 million. Moreover, adjusted EBITDA was recorded at $453.3 million and adjusted cash flow from operations was $250.5 million. The adjusted free cash flow was reported to be $102.2 million.
On July 7, GFL Environmental Inc. (NYSE:GFL) declared a quarterly dividend of $0.012, which was paid on July 29 to the shareholders of record on July 16. As of August 3, the company has a dividend yield of 0.17%.
1. Coterra Energy Inc. (NYSE:CTRA)
Price as of August 3: $28.68
Coterra Energy Inc. (NYSE:CTRA) is a US-based oil and gas company operating mainly in the Marcellus Shale. The company also has properties in the Permian Basin and the Anadarko Basin. As of August 2, the company shares were up 50.13% year-to-date.
On August 2, Coterra Energy Inc. (NYSE:CTRA) declared a quarterly dividend of $0.65, to be paid on August 25 to shareholders of record on August 15. This will bring the quarterly shareholder return to $1.03 per share, including $0.38 per share of repurchases. The total shareholder returns were around 80% of the Q2 2022 free cash flow. Furthermore, Coterra Energy Inc. (NYSE:CTRA) made $303 million worth of repurchases in the second quarter.
You can also take a look at 10 Stocks To Buy According to William Von Mueffling’s Cantillon Capital Management and 10 Important Energy Stocks Making Moves After Earnings.
