June 7, 2023

  • Stocks have rebounded more than 17% from bear market lows, helped by a strong earnings season.
  • Morningstar screened companies that beat expectations but were still undervalued.
  • Here are six of the investment research firm’s top stocks to buy right now.

The market is enjoying a summer rally, leaving investors feeling hopeful for the first time in nearly nine months.

After a dismal 2022, S&P 500 The index has risen 17% since hitting a yearly low below 3,700 on June 17.This Nasdaq 100 It rose 19% over the same period, pulling the tech index out of a bear market.

Better-than-expected second-quarter earnings have contributed to earnings over the past few months.The company performed strongly, including Amazon, appleand Google parent letter Confidence was boosted despite fears of a looming recession.

While it is important to exercise caution during potential risks bear market rallyMorningstar used recent earnings data to sift through a list of stocks that look undervalued despite a strong second quarter.

“Looking at quarterly earnings in the context of valuations can help investors spot opportunities,” analyst Jakir Hossain said in a recent Research Notes“Undervalued stocks, coupled with second-quarter earnings, provide investors with an opportunity to screen for stocks that are both cheap and outperforming earnings expectations.”

The research firm identified six stocks that are still trading below fair value estimates despite their second-quarter earnings targets being crushed.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *