- Valuations aren't what they were but the macro environment is still challenging
- Now is the time to build watchlists of quality companies to own when they get cheap enough
All three stocks flagged by our screens scored full marks on our quality tests, which looks for companies able to generate and sustain a high return on capital while reinvesting profits. With the sell-off in US stocks and rising likelihood of recession impacting earnings, we consider whether these mega-cap stocks are still worth a look.
Nvidia (US:NVDA) – The chipmaker has been beaten down on a range of headwinds, but could the stock now at last look compelling on a valuation basis given its flawless execution of late?
Apple (US:AAPL) – Even Apple has found the going tough in 2022. But soaring revenue growth from its Services business needs to be better understood.
Merck (US:MRK) – Merck has enjoyed a strong run this year thanks to its Covid antiviral and blockbuster cancer treatment, but a patent cliff-edge looms – can its pipeline deliver?
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