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4 Stocks With the Best Value to Buy Right Now

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As inflation cooled down in December, marking the sixth consecutive month of slowing annual inflation, the market expects slower rate hikes ahead. Hence investors should consider fundamentally strong stocks Mosaic (MOS), AutoNation (AN), Ryerson Holding (RYI), and Bluegreen Vacations Holding (BVH) that look significantly undervalued compared to their industry peers. Keep reading.


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Following a year of the Fed’s aggressive monetary policy, inflation rose at a slower rate in the final month of 2022, the biggest monthly decline since early in the pandemic. December’s Consumer Price Index (CPI) showed a 6.5% rise in prices over last year and a 0.1% decrease over the prior month, on par with consensus estimates compiled by Bloomberg. Also, the core CPI increased 5.7% year-over-year, compared to 6% in November.

After the release of the latest CPI report, market pricing pointed toward an increased probability that the Fed would approve a 0.25%-point rate increase at its next meeting on February 1.

This would represent another step down for the central bank after it approved four consecutive 0.75 percentage point hikes last year before slowing down to a 0.5-point increase in December. The Fed officials have projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023.

Moreover, Capital Economics Chief North American Economist Paul Ashworth recently said in a note that “after a final 50 basis points of tightening over the first quarter, taking the fed funds rate to a peak of close to 5%, we still expect the Fed to be cutting rates again before the end of this year.”

Given this backdrop, investors should consider investing in fundamentally strong stocks, The Mosaic Company (MOS), AutoNation, Inc. (AN), Ryerson Holding Corporation (RYI), and Bluegreen Vacations Holding Corporation (BVH), which currently look significantly undervalued compared to their industry peers.

The Mosaic Company (MOS)

MOS produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates; Potash; and Mosaic Fertilizantes.

In December, MOS declared a quarterly dividend of $0.20 per share on its common stock, payable on March 16, 2023. Its annual dividend of $0.80 yields 1.77% on the current market price. It has a four-year average dividend yield of 1.24%. Moreover, the company has raised its dividend payout at a CAGR of 47.6% over the past three years.

In terms of forward non-GAAP P/E, MOS is trading at 3.87x, which is 72.1% lower than the 13.86x industry average. The stock’s 3.55x forward EV/EBIT is 67.7% lower than the industry average of 10.99x, while its forward EV/EBITDA multiple of 2.96x is 60.5% lower than the industry average of 7.50x.

MOS’ net sales increased 56.5% year-over-year to $5.34 billion in the third quarter that ended September 30, 2022. Its gross margin increased 73.7% year-over-year to $1.50 billion, and net earnings attributable to MOS increased 126.3% year-over-year to $841.70 million.

In addition, its adjusted EPS attributable to MOS increased 138.5% year-over-year to $3.22, while its adjusted EBITDA increased 74% year-over-year to $1.68 billion.

Analysts expect the company’s EPS and revenue for the fiscal fourth quarter that ended December 2022 to increase 22.3% and 13.2% year-over-year to $2.39 and $4.35 billion, respectively.

Over the past year, the stock has gained 12.1% to close the last trading session at $46.98.

MOS’ POWR Ratings reflect this promising outlook. The stock has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has an A grade for Value and a B for Growth and Quality. The stock is ranked #8 among 28 in the Agriculture industry.

Beyond what we stated above, we have also given MOS grades for Momentum, Stability, and Sentiment. Get all MOS ratings here.

AutoNation, Inc. (AN)

Automotive retailer AN offers a range of new and used vehicles, wholesale parts, repair, maintenance, and collision services. It also provides automotive finance and insurance products that comprise vehicle services and other protection products and arranges finance for vehicle purchases through third-party finance sources.

On December 12, AN announced an agreement to acquire RepairSmith, a full-service mobile solution for automotive repair and maintenance with a significant operational footprint in the southern and western United States.

The acquisition of RepairSmith will provide AN’s After-Sales business with another channel to provide service to its existing customers and expand its customer base.

Moreover, on November 15, AN announced its acquisition of an approximately 6.1% minority ownership stake in TrueCar, Inc. (TRUE), a leading automotive digital marketplace that lets auto buyers and sellers connect to its nationwide network of Certified Dealers. AN’s decision to invest in TrueCar indicates the company’s continued commitment to emerging technologies and constant focus on providing peerless customer experiences.

The stock’s 0.55x forward non-GAAP PEG is 60.7% lower than the industry average of 1.41x. In terms of forward non-GAAP P/E, AN is trading at 4.80x, which is 66.2% lower than the 14.20x industry average and its forward Price/Sales multiple of 0.21x is 76.9% lower than the industry average of 0.93x.

During the fiscal 2022 third quarter ended September 30, 2022, AN’s revenue rose 4.5% year-over-year to $6.67 billion. Its gross profit increased 3.2% year-over-year to $1.31 billion. The company’s adjusted EPS came in at $6.00 for the quarter, representing a 17.2% rise from the prior-year quarter.

The company’s EPS is likely to rise 33% from the prior year to $24.12 for the fiscal year that ended December 2022. Its revenue is expected to grow 3.7% year-over-year to $26.80 billion in the same year. AN has surpassed the consensus EPS and revenue estimates in three of the trailing four quarters, which is impressive.

The stock has gained 14.1% over the past nine months, closing its last trading session at $115.92.

Its strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system.

It has an A grade for Value and a B for Quality. AN is ranked #5 of 21 stocks in the B-rated Auto Dealers & Rentals industry.

Click here to see the additional ratings for AN for Stability, Growth, Sentiment, and Momentum.

Ryerson Holding Corporation (RYI)

RYI and its subsidiaries process and distribute industrial metals in the United States, Canada, Mexico, and China. It offers various products in carbon steel, stainless steel, alloy steel, aluminum, nickel, and red metals in different shapes and forms.

On November 1, 2022, RYI announced the acquisition of Excelsior, Inc, a full-service fabrication and machining company with advanced processing capabilities, including machining centers, laser and waterjet cutting, welding, and complex assemblies.

Steve Bosway, Ryerson’s President, West Region, said, “This acquisition strengthens RYI’s network of value-added service centers, allowing us to provide better experiences and an extended suite of metal processing solutions for customers in the Western United States.”

On November 2, 2022, RYI declared a quarterly cash dividend of $0.16 per share of common stock that was payable on December 15, 2022. Its current dividend of $0.54 yields 1.65% annually, higher than its four-year average dividend yield of 0.36%.

RYI’s forward Price/Sales multiple of 0.19x is 80.4% lower than the industry average of 1.16x. In terms of forward non-GAAP P/E, it is trading at 2.75x, which is 80.1% lower than the 13.86x industry average. The stock’s 0.30x forward EV/Sales is 80.3% lower than the industry average of 1.54x.

RYI reported net sales of 1.54 billion in the fiscal third quarter that ended September 30, 2022. Its net income increased by 10.2% year-over-year to $50 million, while its EPS increased by 15% year-over-year to $1.46.

Street expects RYI’s revenue to increase 10.2% year-over-year to $6.25 billion in the fiscal year ended December 2022. Its EPS is expected to increase 59.1% year-over-year to $11.87 in the same year. Also, the company has surpassed EPS and revenue estimates in three of the four trailing quarters.

The stock has gained 49.9% over the past six months to close the last trading session at $32.70. It has gained 26.4% over the past year.

It is no surprise that RYI has an overall B rating, which translates to a Buy in our proprietary rating system.

RYI has an A grade for Value and a B grade for Quality. Within the Industrial – Metals industry, it is ranked #6 out of 37 stocks.

In addition to the POWR Ratings grades highlighted above, you can see RYI ratings for Growth, Momentum, Sentiment, and Stability.

Bluegreen Vacations Holding Corporation (BVH)

BVH is a vacation ownership organization that manages resorts in both leisure and urban regions and advertises and sells vacation ownership interests (VOI). It also provides financing to qualified VOI buyers and management services for vacation clubs and homeowners’ associations.

On October 12, BVH announced the acquisition of two buildings in Vail, Colorado, the neighborhood of Streamside at Vail Resort, along with a 320-room resort and spa in Panama City Beach, Florida. BVH should strategically benefit from expansionary policies.

BVH pays a $0.45 per share dividend annually, which translates to a 1.83% yield on the current price. Its dividend payouts have grown at a 32.8% CAGR over the past three years.

In terms of forward EV/EBIT, BVH is trading at 7.66x, which is 43.5% lower than the 13.55x industry average. Its forward non-GAAP P/E multiple of 8.04x is 43.4% lower than the industry average of 14.20x. The stock’s 0.52x forward Price/Sales is 44.5% lower than the industry average of 0.93x,

For the fiscal 2022 third quarter ended September 30, 2022, BVH’s total revenues increased 16.9% from the year-ago value to $250.84 million. Its net income increased 1.2% year-over-year to $27.65 million, and its EPS increased 12.3% from the prior year’s quarter to $1.19.

The consensus revenue estimate of $208.46 million for the fiscal fourth quarter ended December 2022 reflects a rise of 2.7% year-over-year. The consensus EPS estimate of $0.64 for the same quarter indicates an 8.1% increase from the previous-year quarter.

The stock has gained 59.3% over the past three months to close the last trading session at $27.77.

BVH’s POWR Ratings reflect its positive outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

The stock has an A grade for Value and a B for Sentiment and Quality. BVH is ranked #1 of 22 stocks in the B-rated Travel – Hotels/Resorts industry.

Click here to see additional ratings of BVH for Stability, Growth, and Momentum.


MOS shares were trading at $45.28 per share on Friday morning, down $1.70 (-3.62%). Year-to-date, MOS has gained 3.21%, versus a 3.23% rise in the benchmark S&P 500 index during the same period.


About the Author: Kritika Sarmah

Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor’s degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.

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Entrepreneurship

5 Ways to Become a Better Public Speaker This Year

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Opinions expressed by Entrepreneur contributors are their own.

The ability to speak publicly is a skill that everyone can use. From coaches to entrepreneurs and writers, anyone who wants to get out into the world to market what they do needs to be an effective speaker.

This article will discuss five ways to become a better public speaker — five methods for sharpening your raw talents to morph into a more effective communicator overall.

Related: This Is the One Thing You Need If You Want to Get Paid Speaking Gigs

1. Practice in different environments

This tip comes from an exercise that musicians sometimes use while practicing.

The idea is to see if you can replicate your performance no matter where you are. As a speaker, you will encounter all kinds of scenarios and audiences. You have surely had distractions around you, being in front of people with different interests, being under different lighting and noise conditions and more.

Practicing speaking in different environments will force you to get comfortable performing under all circumstances. Without the crutch of your favorite environment, you have to remember your lines and recall cues completely on your own.

Related: 4 Expert-Backed Strategies for Improving Your Communication Skills

2. Produce different kinds of ‘speaking’ content

Another tip for becoming a more well-rounded speaker is to produce a variety of speaking content. Speakers don’t always have to stand on a stage and talk to live audiences.

I create speaking content across many channels — from my website and blog to YouTube and my podcast series. I distribute audio and video recordings of my speeches to my clients and promote them on my social channels. I go live on Facebook and other platforms to speak directly to my audiences that way. You can do the same.

This variety isn’t by accident. Producing these different types of content in the digital space allows individuals to sharpen their speaking skills and reach larger audiences than they could in person.

3. Get active on audio platforms

Here’s a speaking tip that doesn’t involve performing as much as learning from what others are already doing: Get active on professional audio platforms such as Clubhouse and Twitter Spaces to meet with like-minded individuals and discuss relevant topics.

Doing this lets you compare notes with industry counterparts while working on your speaking skills. You will endeavor to communicate with other business leaders and coaches from around the world and all different walks of life.

Related: The Role of Effective Communication in Entrepreneurial Success

4. Take every opportunity to speak

Speak to a group at every available opportunity. I used to wonder how I could speak to an audience when the professional invitations dried up for a bit, and the answer was local service groups.

Toastmasters International, Rotary International, Lions Clubs International and the Freemasons are all great examples of the types of organizations that not only perform good works for their local communities but also welcome speakers and presenters to deliver valuable information to their members.

I find chapters of these groups in many cities and towns that I visit. Having these groups near me allows me to cut down on my travel time and simply makes it more convenient to continue practicing speaking skills while also putting my abilities to good use for my community.

Not only will this help you with your skills at public speaking, but it’s a rewarding experience as well.

5. Work with a speaking coach

Finally, every speaker-in-training could benefit from working with a speaking coach or mentor. These professionals provide their clients with professional tips and feedback on everything from the words they’re using to how they’re delivering them to audiences.

Some speakers wonder why they can’t just rely on their friends and families to provide them with honest feedback, and there are some good reasons for not doing that. Family and friends are kind, but that’s exactly the problem. Speakers need the unrelenting honesty of professional coaches if they truly want to leave their bad habits behind and become stronger.

I hired a professional speaking coach to improve my skills, and I can attest that it pays dividends every single day in my career.

Related: Leading Speaking Coach Shares His Strategies To Get A Flood Of Clients From Webinars And Virtual Presentations

Communication is everything to professionals

Whether it’s in the world of business, non-profits or coaching, speaking effectively is vital to success. Communication means everything to professionals, and those who can’t tell others what they do and what they’re about can’t expect to get their visions too far off the ground.

I followed these five actionable tips for becoming a better speaker, and I came out on the other side as a communicator that I never even thought possible. You will do the same.

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26% of U.S. Workers Would Rather Undergo a Root Canal Than Follow This Workplace Policy

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Opinions expressed by Entrepreneur contributors are their own.

According to a recent survey conducted by job site Monster, more than one in four (26%) U.S. workers would rather undergo a root canal procedure than work in their offices five days a week. Additionally, nearly two in five (38%) workers said they would quit a job that required just one day onsite. These staggering statistics reveal a clear shift in workers’ attitudes towards the traditional office environment, and companies that fail to adapt to this change risk losing their most valuable asset: their employees.

As a highly experienced expert in the field of hybrid work, I talk with 5 to 10 leaders every week about how to make hybrid work serve their needs well. I ask them what their top concern is, and most say it’s hiring and retaining talented staff.

External surveys say the same thing, such as this recent survey by Vistage of the leaders of small and medium-sized businesses. It found that 60% of SME CEOs are planning to increase headcount in the year ahead, with only 7% planning on reducing headcount. According to Vistage Chief Research Officer Joe Galvin, this is a significant shift from the trend of big companies making headlines with layoffs, as small and medium business CEOs are reluctant to lay off their hard-won new employees. One key reason for this shift is the recognition that hiring challenges are impacting the ability of these businesses to operate at full capacity. With 61% of CEOs saying that hiring challenges are a major concern for their ability to operate effectively at full capacity.

Given this information, I confidently tell the leaders whom I advise that the future of work is in a flexible hybrid work model that allows for some full-time remote work. This model not only keeps workers happy and engaged, but it also has a positive impact on a company’s bottom line.

Related: You Should Let Your Team Decide Their Approach to Hybrid Work. A Behavioral Economist Explains Why and How You Should Do It.

Increased productivity and employee engagement

One of the most significant benefits of a flexible hybrid work model is increased productivity and employee engagement. Studies have shown that remote workers tend to work more efficiently and are less likely to experience burnout. A mid-size IT services company that I consulted for implemented a flexible working policy, and they saw a 20% increase in productivity among their remote workers.

Remote workers have the ability to create their own personalized work environment, which leads to an increase in productivity. They can work from a location that is most comfortable for them, whether that be their home, a coffee shop or a coworking space. This leads to a decrease in distractions and an increase in focus, resulting in a higher level of productivity.

Flexible working also has a positive impact on employee engagement. When employees have the ability to work in a way that suits them best, they are more likely to be engaged and motivated. This leads to a decrease in turnover, and an increase in employee loyalty and job satisfaction.

Access to a wider talent pool

A flexible hybrid work model also allows companies to tap into a wider talent pool. When companies are not limited by geographical location, they can attract and retain the best talent from all over the world. A large financial services company that I worked with had difficulty finding qualified candidates in their local area, but by implementing a flexible working policy, they were able to hire top talent from other parts of the country.

A flexible working policy also allows for a more diverse workforce, as it can attract candidates who may have previously been excluded due to geographical constraints. This diversity leads to new perspectives, ideas and innovation.

Cost savings on talent

Flexible working can also lead to significant cost savings for companies. A flexible hybrid work model reduces the need for office space, and it can also lead to a reduction in absenteeism and turnover. A retail company that I consulted for implemented a flexible working policy, and they saw a 30% reduction in absenteeism due to less workers taking sick days and a 20% reduction in turnover.

When employees have the ability to work from home, it leads to a reduction in absenteeism as they are less likely to be affected by things such as traffic, weather, or public transportation issues. This can also lead to a decrease in sick leave, and an increase in overall productivity.

Flexible working can also lead to a reduction in turnover, as employees are more likely to be satisfied and engaged in their work. This leads to a decrease in the cost of recruiting and training new employees.

Addressing cognitive biases

Cognitive biases can play a significant role in decision-making when it comes to flexible working. The status quo bias, for example, leads managers to resist change and stick to the traditional office environment. The sunk cost fallacy can also come into play, where managers may be reluctant to change the way things have always been done because they have invested so much time and resources into the current system. By being aware of these cognitive biases and actively working to overcome them, companies can make more informed and effective decisions about their working policies.

One way to overcome these biases is to gather data and conduct studies on the impact of flexible working on employee productivity, engagement, and turnover. This can provide concrete evidence to support the implementation of a flexible hybrid work model. Additionally, it is important for managers to actively seek out feedback from employees on their preferences for working arrangements and to consider their needs and concerns.

Implementing a flexible hybrid work model

Implementing a flexible hybrid work model can seem daunting, but with proper planning and communication, it can be done successfully. It is important to set clear guidelines and expectations for remote work, such as setting specific hours of availability and ensuring regular communication with team members.

It is also important to provide the necessary tools and resources for remote work, such as a reliable internet connection and a secure virtual communication platform. Providing training on hybrid work best practices and technology can also help to ensure a smooth transition, as can hiring a hybrid work consultant to guide your transition.

Related: Salesforce CEO Marc Benioff Is Right. New Employees Are Less Productive in a Hybrid Work Setting — But Why?

Conclusion

The shift in workers’ attitudes toward the traditional office environment is undeniable. Companies that fail to adapt to this change risk losing their most valuable asset: their employees. A flexible hybrid work model that allows for some full-time remote work is the future for anyone who cares about worker retention, increased productivity, access to a wider talent pool, cost savings, and overcoming cognitive biases. The time for companies to implement this model is now. As a leader of a company, it’s important to recognize that the traditional office model may no longer be the best option for your employees or your business. By embracing a flexible hybrid work model, you can retain top talent, increase productivity and save costs. The future of work is here, and companies that adapt will be well-positioned for success.

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Google Worker Laid Off While On Leave Caring For Sick Mom

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One person who was laid off from Google in the company’s wave of staff cuts last week says he was on a leave from work taking care of his mother who is terminally ill with cancer.


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Google offices in New York City.

Paul Baker was on leave for about a month when he received an email letting him know the company was laying him off, along with around 12,000 others, he told Insider.

“While on carer’s leave for my immediate family member’s terminal cancer, I too was laid off. After the initial shock, it morphed into sadness because I miss the people,” he also wrote on LinkedIn.

Related: More Than 1,600 Tech Workers Are Being Laid Off A Day On Average In 2023, According to a New Report

On Jan. 20, Google’s CEO Sundar Pichai sent a note to employees taking responsibility for hiring “for a different economic reality than the one we face today.”

Baker told Insider that he was on leave and was told by a friend about the layoffs, then found his work laptop had been “cut off,” the outlet wrote.

He was a video producer at Google, according to his LinkedIn, and had been at the company since 2018. Baker told Insider he was feeling “shock and sadness.” The outlet said it verified the leave period as well as his severance email and prior employment with Google.

Related: In a Viral TikTok, An Ex-YouTube Employee Talks About Getting Laid Off During a Business Trip

“I’ll truly miss it,” he said.

Baker also told the outlet he has not received information about how his severance package would be affected by the fact that he was on career leave to care for his mom.

Pichai said in the memo the company will provide “six months of healthcare, job placement services and immigration support for those affected.”

Still, he told Insider he would love to go back to the company.

“If there’s ever a Google position open for another video producer position, I would take it in a heartbeat,” he said.

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