On today’s episode of Full Court Finance at Zacks, Ben Rains discusses some of the current market conditions after the recent tech-driven correction. The episode then dives into five highly-ranked Zacks stocks that investors might want to consider buying despite the recent return of increased volatility.
The Nasdaq jumped around 2% through early afternoon trading on Monday, as the market bounced back to start the week, in what has been an up and down few sessions following the market’s ultra-fast correction. The Nasdaq rests about 8% off its September 2 highs, with the S&P 500 over 5% below its recent record.
Analysts and investors had been projecting a pullback in the tech-driven market rally for months that saw Tesla TSLA, Apple AAPL, and others all soar through the start of September. And more selling could be on the horizon, given the uncertainty of the upcoming election, U.S.-China trade tension, and more.
Yet investors with longer-term horizons don’t need to try to time the market so precisely. Even with the return of volatility, institutional investors aren’t dumping tech outright. Plus, they must find returns somewhere with interest rates pinned near zero for the foreseeable future, creating what could be a sustained run of there is no alternative stock market investing.
Given this backdrop, continuing to hunt for stocks to add might be advantageous for some investors. So we explored five stocks that all boast Zacks Rank #1 (Strong Buy) standings at the moment, with strong outlooks.
Target TGT is the first stock up. The retailer has thrived during the pandemic through e-commerce and in-store expansion, and it might be worth considering over rival Walmart WMT.
The next name we dive into is Zoom Video ZM. The firm has proven to Wall Street that it’s a pandemic champion and its offerings might have real staying power. And ZM shares still rest 13% off their recent highs, after slipping as much as 20%.
We then take a look at The Boston Beer Company SAM. SAM is set to expand its top and bottom lines on the back of hard seltzer that is clearly the next revolution in the market.
Scotts Miracle-Gro SMG is known for its consumer lawn and garden products, but it has proven recently to be one of the best and safest bets on the growing marijuana industry, as well as indoor farming in general.
The episode closes out with Yeti YETI. The high-end cooler company has expanded its reach and it might be worth considering next to the likes of Lululemon LULU and Peloton PTON.
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