The volatility seen across nearly every industry only seems to continue down its whiplashing path, with no end in clear sight.
To begin with, when it comes to fuel, oil was already in short supply, and the crisis in Eastern Europe is far exacerbating the problem. As a result, oil prices are likely to remain high for some time. Meanwhile, inflation is higher than it’s been in decades, and the supply chain will take time before getting back on track.
Given the current market scenario, investors may use TipRanks’ Smart Score System to filter out the less healthy names to their portfolios.
This is a data-driven score that assists an investor in conducting more in-depth research of a company based on eight important market criteria. The calculation results in an assigned score on a scale of 1-10. Particularly when the stock market is troubled by unprecedented levels of danger, as it is right now, equities with a Smart Score of 10 provide the most protection.
In light of the foregoing circumstances, we have chosen two stocks that have received a “Perfect 10” stock analysis utilizing TipRanks’ Smart Score System.
Home Depot (HD)
Home Depot, a home improvement retailer, has received a “Perfect 10” rating as of yesterday.
The company sells items like decor goods, garden, home renovation, and building materials. Home Depot also offers a variety of services, such as installation and equipment rental. As a result, the company’s various offerings are a big strength.
From a financial perspective, the company has experienced exceptional growth over the last two years, coinciding with lockdowns and a focus on at-home trends. Home Depot has continued to claim increasing sales and income even after things have nearly returned to normal. Revenues and earnings increased 10.7% and 21.1%, respectively, from the year-ago quarter.
Along with the increase in earnings, Home Depot increased its dividend by 15% to $1.90 per share in the fourth quarter. The company’s current dividend yield is 2.2%.
Further, the stock has generated a lot of excitement among investors. The investors holding portfolios on TipRanks maintain a very positive outlook on HD stock. According to the statistics, 3.9% of these investors boosted their HD stock holdings in the last 30 days.
Analysts are upbeat about this stock, with 17 Buys ratings and four Hold ratings. The shares are priced at $384.53 and the average HD price target of $384.53 implies around 22.4% upside from that level.
Ally Financial (ALLY)
Next on the list is Ally Financial, a financial services firm that recently received a “Perfect 10” rating. The company’s digital financial services and solutions can be used by both businesses and individual consumers.
The company’s attempts to diversify its revenue base, as well as the gradual rise in demand for consumer loans and strategic acquisitions should support Ally’s financials.
The corporation recently reported its fourth-quarter profits, which featured some eye-popping numbers. The results were spectacular, with revenues of $2.2 billion, up 17% year-over-year. Meanwhile, adjusted earnings per share were $2.02, up 26% from the year-ago quarter.
Furthermore, the corporation is aggressively repurchasing shares to restore funds to shareholders. Ally’s $2 billion share repurchase program was completed in 2021. Aside from these share repurchases, Ally is a dividend company with a current yield of nearly 2%.
Given the company’s strong capital and liquidity position, Ally Financial is likely to maintain efficient capital deployment activities in the future, hence increasing shareholder value.
Overall, with 10 analyst reviews on file, including eight Buys and two Holds, Ally Financial gets a Strong Buy rating from the analyst consensus. Shares are priced at $43.81, and the average ALLY price target is $60.60, representing more than a 38% upside potential.
Final Words
We can see that Wall Street analysts are positive on both equities, with average price predictions implying double-digit gains in the coming year. Both are also appealing dividend growth stocks with a strong track record of increasing cash flow payments to shareholders.
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