Is the bear market over? This is the question that everyone wants to know.
After a near-historic decline over the first half of the year, the stock market has been on a roll over the past month, with the S&P 500 rising nearly 9%, while the Nasdaq is up 14%.
JPMorgan chief global markets strategist Marko Kolanovic has an upbeat message for those concerned about the sustainability of the rally.
“Risk markets are rallying despite some disappointing data releases, indicating bad news was already anticipated/priced in… Although the activity outlook remains challenging, we believe that the risk-reward for equities is looking more attractive as we move through 2H,” Kolanovic opined.
Against this backdrop, the analysts at the banking giant have pinpointed two names which they believe are ready to surge ahead – by the order of 40% or more. In fact, the JPM experts are not the only ones singing these stocks’ praises. According to the TipRanks platform – they are rated as Strong Buys by the Street’s analysts. Let’s take a closer look.
We’ll begin with Olin, a company whose roots stretch back all the way to 1892 when it was a small supplier of blasting powder. Since then, it has grown significantly to become a global manufacturer and distributor of chemical products. In fact, it is now the world’s biggest producer of chlorine and caustic soda and their derivatives, and with a ~6% market share, takes the number 1 spot in the global chlorine/caustic soda market.
Toward the end of last month, Olin released its latest quarterly report – for 2Q22. Revenue increased by 18% year-over-year to $2.62 billion, while the company delivered diluted EPS of $2.76, beating the Street’s call for $2.57. But beyond the headline numbers, of particular interest to shareholders, is the company’s buyback activity.
Having rehabilitated its balance sheet in 2021, the company is now using its cash flow for the advantage of its shareholders, and aggressively shrinking the share base. The company repurchased 7.4 million shares in Q2, allocating $426.5 million to the…