Concerns over rising energy prices, surging inflation, the Ukraine and Russia war, and rising COVID-19 cases in China have made the stock market extremely volatile. Also, the Fed's decision to hike the interest rates further in May by 50 basis points to attack multi-decade high inflation has also caused the benchmark indexes to tumble recently.
The S&P is down 5.2% so far in April and is very close to posting its worst monthly performance since March 2020, i.e., during the COVID-19-led collapse in equities.
Given this backdrop, we think investing in fundamentally sound mid-cap stocks Bruker Corporation (BRKR) and PVH Corp. (PVH) could significantly help investors hedge the current market volatility. These stocks are down more than 25% in price year-to-date, offering attractive entry points.
Bruker Corporation (BRKR)
With a market capitalization of $8.81 billion, BRKR in Billerica, Mass., develops, manufactures, and distributes scientific instruments and analytical and diagnostic solutions in the United States and internationally. Bruker Scientific Instruments (BSI) Life Science; BSI NANO; and Bruker Energy & Supercon Technologies are the company's three operational segments.
At the 32nd European Congress of Clinical Microbiology & Infectious Diseases, BRKR announced further improvements in its market-leading MALDI Biotyper (MBT) platform and launched new multiplex PCR infectious disease assays that are based on its proprietary LiquidArray technology. BRKR further expands its mycobacteria portfolio with the FluoroType Mycobacteria PCR assay, launched on the high-precision FluoroCycler XT thermocycler.
During the fourth quarter, ending Dec. 31, 2021, BRKR's revenue increased 8.9% year-over-year to $683.5 million. Its non-GAAP operating income grew 1.9% from its year-ago value to $143.8 million, while its net income attributable to BRKR amounted to $90.2 million, up 1.5% from its prior-year quarter. The company's non-GAAP EPS rose 1.7% year-over-year to $0.59.
Analysts expect BRKR's revenue to increase 3.2% year-over-year to $572.50 million for the first quarter, ended March 31, 2022. The $0.39 consensus EPS estimate represents a 2.6% improvement year-over-year during the second quarter, ending June 30, 2022. In addition, the company has an impressive earnings history; it surpassed the consensus EPS estimate in three of the trailing four quarters. The stock has plunged 30% in price year-to-date.
BRKR's POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
BRBR is also rated a B grade for Value and Quality. Within the Medical - Diagnostics/Research industry, it is ranked #4 of 49 stocks.
To see additional POWR Ratings for Growth, Stability, Sentiment, and Momentum for BRKR, click here.
Click here to checkout our Healthcare Sector Report for 2022
PVH Corp. (PVH)
PVH in New York City is an apparel company internationally. The company has six operational segments: Tommy Hilfiger North America; Tommy Hilfiger International; Calvin Klein North America; Calvin Klein International; Heritage Brands Wholesale; and Heritage Brands Retail. It designs, markets, and retails men's, women's, and children's apparel and accessories. It has a market capitalization of $5.18 billion.
PVH's net sales increased 15.9% year-over-year to $2.31 billion for its fourth fiscal quarter ending Jan. 30, 2022. Its total gross profit grew 25.7% from its year-ago value to $1.42 billion, while the non-GAAP net income amounted to $200.7 million compared to a $27.4 million net loss in the prior-year quarter. The company's non-GAAP EPS amounted to $2.84 compared to a $0.38 loss per share in the previous period.
The $2.98 consensus EPS estimate represents 11.5% growth year-over-year during its third quarter, ending Oct. 31, 2022. Analysts expect PVH's revenue to increase 5.9% year-over-year to $2.47 billion for the same period. In addition, the company has an impressive earnings history; it surpassed the consensus EPS estimate in each of the trailing four quarters. The company's shares have plunged 28.6% in price year-to-date.
PVH's strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. The stock also has an A grade for Value and a B grade for Growth and Quality. In the A-rated Fashion & Luxury industry, it is ranked #19 of 67 stocks.
In total, we rate PVH on eight distinct levels. Beyond what we have stated above, we have also given PVH grades for Stability, Momentum, and Sentiment. Get all the PVH ratings here.
Click here to checkout our Retail Industry Report for 2022
BRKR shares were trading at $57.05 per share on Tuesday afternoon, down $1.97 (-3.34%). Year-to-date, BRKR has declined -31.96%, versus a -11.16% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
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