Cheap stocks that will skyrocket drivers#
Cheap stocks that will skyrocket driver#

Cheap stocks that will skyrocket driver#

One driver of growth at the moment is high demand for Reckitt’s baby formula products (Enfamil).On the back of this performance, management advised that it now expects full-year LFL net revenue growth towards the upper end of its guidance of 1-4%. For Q1, Reckitt delivered like-for-like (LFL) sales growth of 5.6%.This helped to offset higher raw material prices. In the first quarter of 2022, it was able to raise its prices by 5.3%. Reckitt could also offer some protection against inflation due to the fact that it has strong brands and pricing power.Given that many financial experts are predicting a recession in the near future, RKT could potentially play a valuable role in investor portfolios right now. This means that demand for its health products (Nurofen painkillers, Strepsils lozenges, Mucinex cough medication, etc.) tends to remain fairly stable. No matter what’s happening in the global economy, people always fall ill. Reckitt is a classic ‘defensive’ stock.The company, which sells its products in over 200 countries worldwide, owns many well-known brands including Dettol, Nurofen, Durex, and Strepsils. Reckitt is a leading consumer goods company that operates in the areas of health, hygiene, and nutrition.Past performance is not an indication of future results.

Cheap stocks that will skyrocket drivers#

In this guide, we are going to highlight five top stocks for investors to consider for the third quarter of 2022.Īll of these companies look well placed to handle the economic uncertainty we’re facing right now, and have growth drivers that could potentially push their share prices higher in the future. Going forward, the UK market could offer investors some interesting opportunities. This outperformance can be attributed to its mix of commodity and traditional defensive sectors, alongside inexpensive valuations versus history and a high dividend yield. This year, the large cap FTSE 100 has fallen the least of the major global equity indexes. Despite challenging economic conditions and inflation hitting 9%, the UK stock market has been resilient in 2022. One market that certainly looks interesting right now is the UK. In this kind of market environment, it could be ‘value’ and ‘defensive’ stocks that generate the best returns. The key will be to get the investment ‘style’ right. However, as was the case in the first half of 2022, there are likely to be plenty of opportunities for stock pickers. Given the elevated level of economic uncertainty, we are likely to see a ‘U-shaped’ market recovery and not a ‘V-shaped’ recovery like we saw in early 2020. Looking ahead to Q3, we may see further volatility across the world’s stock markets in the near term.

All of these companies outperformed the broader market by a wide margin in H1. Pharmaceutical giant AstraZeneca, beverages company Coca-Cola, and tobacco group British American Tobacco are some good examples here. Meanwhile, plenty of dividend stocks generated healthy returns as well. Northrop Grumman and Lockheed Martin, for instance, delivered double-digit positive returns for investors. Defence stocks also did well, boosted by the high levels of geopolitical risk. Chevron and Shell, for example, rose more than 20% over the period. Despite a pullback in June, this sector delivered strong returns for investors on the back of high oil and gas prices. There were some areas of the market that generated positive returns in the first half of the year, however. As a result, major stock market indexes such as the S&P 500, the Nasdaq 100, and the STOXX Europe 50 ended the term in negative territory. With inflation hitting multi-decade highs, central banks raising interest rates aggressively, China reintroducing Covid lockdowns, and the Russia-Ukraine crisis creating new supply chain issues, sentiment towards stocks deteriorated. The first half of 2022 was a challenging period for investors.