Today’s episode of Full Court Finance at Zacks discusses the wild and whipsawing market as we approach the halfway point of March. The episode then breaks down two large-cap technology stocks, Micron (MU) and Microsoft (MSFT), that investors with long-term horizons might want to consider buying right now at rather significant discounts and holding despite the possibility of continued volatility.
Monday’s trading helped encapsulate the up and down nature of the market since the Russian invasion began. The Nasdaq attempted to climb a bit Monday morning, only to sink 2%. The move pushed the tech-heavy index into bear market territory once again, down roughly 22% from its records. Meanwhile, the S&P 500 is currently trading around 13% off its highs.
Both the benchmark and the Nasdaq are hovering near new 2022 lows. Much of the recent downturn can be blamed on the fact that there are few signs of progress on the cease-fire front right now, even as the U.S., other nations, and private companies clamp down further on Putin and his regime.
The ramping up of sanctions and non-military pressure hasn’t stopped the Russian invasion from ramping up. Projecting what might happen next grows more difficult by the day, and the longer the fighting continues the more likely Wall Street is to grow fearful about a larger conflict.
Outside of stocks, oil prices and Treasury yields have experienced sizeable swings in recent weeks. Thankfully, Wall Street won’t have to wait much longer for clarity on what the Fed will do to help combat 40-year high inflation. Still, investors with the ability to look beyond near-term worries and hold onto stocks even if they fall in the coming weeks and months might want to consider buying strong technology stocks at solid discounts and holding for years to come.
The first stock we explore today is
Micron Technology, Inc.
MU
. Micron is one of the largest makers of memory chips in the world. Micron is growing less cyclical as it benefits from exposure in areas such as connected vehicles, data centers, and other important areas of growth. Micron’s fiscal 2021 sales and earnings surged and its outlook for 2022 and beyond is strong.
MU’s positive bottom-line activity helps it land a Zacks Rank #2 (Buy) at the moment. Plus, Micron is trading at a solid discount to its highs and its valuation is growing increasingly enticing. It is worth noting that Micron is scheduled to report its Q2 fiscal 2022 financial results on March 29.
The second stock we break down today is
Microsoft
MSFT
. The historic tech firm’s Office and Windows units remain highly valuable and its expansion into cloud computing has helped Microsoft post a solid streak of 14% or stronger revenue growth. And that is just the start of why Microsoft is flashing buy signals right now as it trades 20% below its November records.
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