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One of the prime factors driving the market’s rally is impressive third-quarter earnings reports from S&P 500 companies. According to a FactSet report, the net profit margin for the S&P 500 member companies for the third quarter of 2021 is 12.3% (combining the numbers reported so far and the estimates), which compares to a 10.9% five-year average net profit margin. Analysts expect third-quarter earnings to jump 35% year-over-year.
Given the market’s uptrend, we think that quality stocks Telefónica, S.A. (TEF), and Crescent Point Energy Corp. (NYSE:CPG), which are currently trading at less than $10, could be good additions to one’s portfolio now.
