Focus on strengths in weak markets
Investors have certainly had their hands full to start the year, as volatility is hitting many areas of the market hard. It’s hard to say how much this weakness will pay off, but the great thing about investing is that there are always opportunities to find it, regardless of instability. Even in a market full of chalk, few shares are gaining traction as investors seek to increase company shares, which could be large by 2022.
In the event of a sharp reversal, it usually results in a focus on stocks that show relative strength, as this means that stocks are still in demand even in the case of a weak band. A few names stand out as potential buyers at the moment, given how well they hold up during the current volatility. Often the strongest stocks are the first to reach new highs when the indexes find their basis, so keep that in mind if you want to invest some money right now.
Here are 3 strong stocks that can be bought in a weak market.
Bristol-Myers Squibb (NYSE: BMY)
This high quality biopharmaceutical stock has just restored the 200-day moving average with a reputation և could be a great name to add to the start of the year. Bristol-Myers Squibb offers a range of common over-the-counter medications և advanced biological treatment և mainly focused on oncology, immunology և inflammatory diseases, as well as cardiovascular ի fibrotic diseases. Shares rose well after the company recently announced plans for a $ 5 billion share repurchase plan and provided financial guidance for 2022.
Bristol-Myers expects the company to generate $ 47 billion in revenue in 2022, an increase from low single digits. The company will soon lose the exclusivity of its best-selling drugs, such as Eliquis և Revlimid, but Bristol-Myers has some very exciting new drugs, such as Reblozyl արյան, the recently released Zeposia, Breyanzi և Abecma, that should help. reimburse income. losses. With an increasingly diversified product portfolio with attractive dividend yields of 3.44% and a very attractive P / E ratio of 8.38, this is an undervalued stock that will rise significantly in the coming years.
Teck Resources Limited (NYSE: TECK)
This fund metal անք is reaching unprecedented highs 2018 և և is a bright spot in the uncertain market, so it should be on your shopping list. Teck Resources is a Canadian-based mining company that is one of the world’s largest producers of zinc and metallic coal. The company also produces copper, lead, silver, molybdenum and bitumen. As the effects of the epidemic continue to weaken, investors can expect that metal: mining companies such as Teck will see an increase in demand as economic activity grows around the world.
Commodity prices for resources such as copper, zinc, etc. should remain stable in the coming months, և the fact that Teck operates in countries such as Canada, USA և Chile, suggests that the country faces less risk for the country than many. to his rivals. The company also does a lot of business with China, so if you think China’s economy is going to recover sharply this year, Teck is a good way to play with that trend. Finally, a 0.51% dividend yield և 6.35 of the primary P / E ratio make this stock a potential trade, even after last year’s high.
If you have not yet started a major topic in the market this year, it is clear that investors are moving around with more valuable names, coming out of growth. One such name that has seen some strong influx to start the year is Deere & Co. It is the world’s largest producer of agricultural equipment, including construction machinery, lawn and garden equipment. Deere is the name of a quality that investors can feel comfortable adding in times of market weakness due to its recent strong earnings, a key role the company plays in global agriculture.
EPS for the 4th quarter has grown by more than 70% year-on-year; recently the dividend growth has been 15%, it is clear that Deere has some momentum towards 2022. Although the shares have gone back about 6 months, there are several factors that can lead to the shares reaching a new high in the coming months. This year, Deere will have to take advantage of all the infrastructure costs, both in the US and abroad, while high crop prices could be another positive catalyst for stocks. This is obviously one of the relatively strong market leaders to start the year և It might be a smart buy if we continue to see a rotation towards value stocks.