The Casualty List, a quarterly report by an anonymous investor, highlighted four stocks with good recovery potential in the aftermath of a rough first quarter. These stocks include United States Steel Corp. (X), Humana Inc., Universal Corp. (UVV), and G-III Apparel Group Ltd. (GIII). Despite healthy gains in the market overall, these stocks saw significant declines in value.
United States Steel Corp., once the largest corporation in the world, is now a mid-sized company and the second-largest steel producer in America. The company recently agreed to be sold to Nippon Steel, but President Biden and former President Donald Trump have expressed opposition to the takeover. The uncertain future of the company may result in a sale in 2025 or 2026, but if it remains independent, there is potential for moderate gains for investors.
Humana Inc., one of the largest health insurance companies in the U.S., experienced a 24% decline in the first quarter. The company faced challenges related to a cyberattack and rising health-care costs, but has maintained profitability for 24 years. With the potential for profits to rebound, the stock offers a significant upside if it can return to historical revenue ratios.
Universal Corp., a tobacco leaf supplier, saw a 23% decline in the first quarter. Despite slow revenue growth, the company has a strong track record of dividend payments and increases, with a 6.1% yield. Investor interest in Universal has been low, but the stock may present a buying opportunity for those seeking income and potential growth.
G-III Apparel Group, a clothing manufacturer, suffered a 13% decline in the first quarter. The stock is trading at a low price/earnings ratio, making it a bargain according to the investor. With a profitable track record and diverse brand portfolio, G-III has the potential for growth and recovery in the future.
The investor has been compiling the Casualty List since 2000, with mixed success in predicting stock performance. While picks from previous years have not always outperformed the market, the Casualty List has provided investment ideas with an average 12-month return of 14.57%. While not all lists have beaten the index, the Casualty List remains a valuable resource for investors seeking stock opportunities.
Overall, the stocks highlighted in the latest Casualty List present unique opportunities for investors looking to capitalize on potential rebounds in the market. With careful consideration of the risks and rewards, these stocks could prove to be lucrative investments for those willing to weather the storm.
