Palo Alto Networks
Palo Alto Networks (PANW) provides services to 70,000 organizations in 150 countries. The company is considered one of the largest software developers in the field of cybersecurity. The IT giant's key product list includes a platform that integrates advanced firewalls and intrusion prevention systems. These innovations ensure the security of customer networks. Analysts estimate that the California tech giant's shares will rise in the near future. Since the beginning of 2022, PANW shares have decreased by 5.3%, but later reached $527 per share. To date, the IT giant's market capitalization is $52.5 billion. According to the report for the third quarter of the current fiscal year, Palo Alto Networks' revenue and profit exceeded experts' expectations as demand for the company's software skyrocketed. The company's management raised its annual forecast for revenue, turnover and earnings per share against the backdrop of demand for cybersecurity services.
Phillips 66
The second company not affected by high inflation and rising rates is Phillips 66, one of the largest US energy corporations. Its activities include refining, transportation, storage and sale of oil, petroleum products (gasoline and distillates), natural gas and renewable fuels. Since the beginning of 2022, Phillips 66 shares have risen in price by 52%, reaching $109.92 per share. The market capitalization of this energy company is estimated at $52.1 billion. The management of Phillips 66 is actively increasing its revenue, thanks to which the company's investment attractiveness remains. The firm practices increasing dividend payments and uses a share repurchase program. As of today, Phillips 66 has increased its quarterly dividend by 5% to $0.97 per share. In addition, the company's shares are traded at a relatively low price-to-earnings ratio, which makes them « cheaper » than other energy stocks. Phillips 66 management is looking to capitalize on strong growth in global demand for fuel, oil and gas, driving the company's sales and profits.
Bank of America
Bank of America (BofA), which is one of the « Big Four » of American banks (along with JPMorgan Chase, Wells Fargo and Citigroup), closes the top 3 most « unflappable » companies of our time. This financial conglomerate lends to the US corporate sector and also offers wealth management and investment banking services. Since the beginning of 2022, the bank's shares have fallen by 18%, but then they won back the losses. BofA has a current market capitalization of $293 billion. Despite growing concerns about an aggressive tightening of monetary policy, Bank of America is able to benefit from rising rates. In the financial report for the first quarter of this year, the company's management noted that the rise in interest rates by 100 b.p. will increase its net income in the form of interest by $5.4 billion. In addition, the banking giant offers its clients an annual dividend of $0.84 per share with a yield of 2.31%. Experts fix the upside potential of BofA by 30%.
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