The Wall Street witnessed sell-offs on Jun 24 and 26 due to the rise in coronavirus infection cases. Notably, the Dow Jones Industrial, the S&P 500 and the Nasdaq declined 3.3%, 2.9% and 1.9%, respectively, in the week.
Coronavirus cases have risen in states like Texas, California and Florida, which were among the first to reopen economy. However, the latest surge has prompted governors to roll back the lifting of the lockdown.
Overall, the United States witnessed a record 45.3K cases on Jun 26. To date, the pandemic has infected more than $2.56 million in the United States, with the death toll rising to 125,803 per John Hopkins university data.
The Dip Opens Up Buying Opportunity
Although resurgence in coronavirus infection is worrying, chances of another nationwide lockdown is minimal, which should boost investor optimism. Markedly, the Dow Jones and the S&P 500 index futures rose on Jun 29.
Moreover, a steady decline in jobless claims reflects improving conditions in the U.S. labor market. The Bureau of Labor Statistics June jobs report is now anticipated to show another 3 million job additions. The unemployment rate is expected to decline to 12.2% from 13.3% in May, which however, is much higher than 3.5% at the end of 2019.
Further, the Trump administration’s draft proposal of a $1-trillion stimulus plan to strengthen infrastructure, including roads, bridges and 5G, is expected to help the economy revive.
Here we pick five stocks that have declined in the past week, which we see as a profitable buying opportunity, given their solid fundamentals and prospects.
Moreover, these stocks carry a favorable combination of a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks proprietary methodology suggests stocks with such a perfect mix of