Since the beginning of the year, the equity markets have experienced dizzying volatility due to rising inflation, hostilities between Ukraine and Russia, and forthcoming interest rate hikes. The Dow Jones Industrial Average is down 7% year-to-date, while the S&P 500 and Nasdaq Composite have fallen 8.4% and 13.4%, respectively, year-to-date.
The markets could remain volatile in the near term because Russia shows no signs of de-escalation in its invasion of Ukraine. Also, investors have been spooked by rising crude oil prices and a worsening supply crunch. Prices of crude oil have been climbing, with the benchmark Brent and WTI hitting multi-year price highs. Investors fear that global trade might be impacted as the West moves to block some Russian banks from the SWIFT international payments system. More sanctions on Russia could lead to further price swings as investors assess their implications for the global economy.
Amid these rising uncertainties, we think it could be wise to add low-beta stocks ResMed Inc. (RMD), AMN Healthcare Services, Inc. (AMN), and Quidel Corporation (QDEL) to one’s watchlist. Low-beta stocks are well known for their ability to withstand choppy market conditions and generate steady returns.
ResMed Inc. (RMD)
RMD in San Diego, Calif., provides innovative solutions to treat hospital outpatients. The company offers cloud-connected medical devices to people with sleep apnea, COPD, and other chronic diseases. Its comprehensive out-of-hospital software platforms also support professionals and caregivers. RMD operates healthcare systems in more than 140 countries. It has a 0.34 beta.
On Aug.16, 2021, RMD launched AirSense 11. It is the company’s next-generation PAP (positive airway pressure). The device has been designed to help people worldwide with sleep apnea start and stay on therapy to treat and manage obstructive sleep apnea.
RMD’s revenues increased 12% year-over-year to $894.87 million for the second quarter, ended Dec. 31, 2021. The company’s non-GAAP net income increased 4.7% year-over-year to $216.21 million. Also, its non-GAAP EPS came in at $1.47, representing a 4.2% increase year-over-year.
Analysts expect RMD’s EPS for the quarter ending June 30, 2022, to increase 23.7% year-over-year to $1.67. Its revenue for its fiscal year 2022 is expected to increase 16.9% year-over-year to $3.74 billion. It surpassed the Street’s EPS estimates in three of the trailing four quarters. And over the past year, the stock has gained 31.4% in price to close the last trading session at $249.91.
RMD’s POWR Ratings reflect solid prospects. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Growth, Stability, Sentiment, and Quality. It is ranked #23 of 166 stocks in the Medical – Devices & Equipment industry. Click here to see the other ratings of RMD for Value and Momentum.
Note that RMD is one of the few stocks handpicked by our Chief Growth Strategist, Jaimini Desai, currently in the POWR Growth portfolio. Learn more here.
Click here to checkout our Healthcare Sector Report for 2022
AMN Healthcare Services, Inc. (AMN)
AMN provides healthcare workforce solutions and staffing services at acute and sub-acute care hospitals and other healthcare facilities throughout the United States. The San Diego, Calif.-based company operates through three segments: nurse and allied solutions; physician and leadership solutions; and technology and workforce solutions. It has a 0.33 beta.
For the fiscal fourth quarter, ended December 31, 2021, AMN’s revenues increased 116% year-over-year to $1.36 billion. The company’s adjusted net income increased 197.8% year-over-year to $141.99 million. In addition, its adjusted EPS came in at $2.95, representing an increase of 196% year-over-year. And its adjusted EBITDA increased 149% year-over-year to $222.61 million.
For the quarter ending March 31, 2022, AMN’s EPS and revenue are expected to increase 87.6% and 69.4%, respectively, year-over-year to $3.19 and $1.50 billion. It surpassed consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 48.3% in price to close the last trading session at $107.20.
AMN’s POWR Ratings reflect solid prospects. The stock has an overall B rating, which translates to a Buy in our proprietary rating system.
It has an A grade for Growth and a B grade for Value, Sentiment, and Quality. Within the Medical – Services industry, it is ranked #10 of 84 stocks. To see the other ratings of AMN for Momentum and Stability, click here.
Click here to checkout our Healthcare Sector Report for 2022
Quidel Corporation (QDEL)
San Diego, Calif.-based QDEL provides rapid diagnostic testing solutions, cellular-based virology assays, and molecular diagnostic systems. The company develops, manufactures, and markets rapid diagnostic testing solutions. These solutions are separated into four product categories: rapid immunoassay, cardiometabolic immunoassay, molecular diagnostic solutions, and specialized diagnostic solutions. Its stock has a negative 0.09 beta, indicating an inverse correlation with the broader market trends.
On Dec. 23, 2021, QDEL announced that it had agreed to acquire Ortho Clinical Diagnostics Holdings plc, one of the largest in-vitro diagnostics companies. President and CEO Douglas Bryant said, “The combination with Ortho will help solidify Quidel as a leader in the diagnostics industry, bringing together innovative, complementary products, solutions, and services that enhance the health and well-being of patients across the globe.”
QDEL’s revenue for its fiscal year 2021 increased 2.2% year-over-year to $1.69 billion. The company’s revenue for COVID-19 products increased 42% year-over-year to $1.26 billion. Also, its net income declined 13% year-over-year to $704.22 million.
Analysts expect QDEL’s EPS and revenue for the quarter ending June 30, 2022, to increase 357.3% and 118.4%, respectively, year-over-year to $3.43 and $380.89 million. Over the past month, the stock has gained 1.5% to close the last trading session at $101.20.
QDEL’s POWR Ratings reflect this promising outlook. The stock has an overall B rating. Which translates to a Buy in our proprietary rating system.
It has an A grade for Value and Quality. It is ranked #11 of 55 stocks in the Medical – Diagnostics/Research industry. Click here to see the additional ratings of QDEL for Growth, Momentum, Stability, and Sentiment.
Click here to checkout our Healthcare Sector Report for 2022
RMD shares were trading at $252.14 per share on Friday afternoon, up $2.23 (+0.89%). Year-to-date, RMD has declined -3.03%, versus a -9.20% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
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