Given rising uncertainties in the stock market, it could be wise to bet on beaten-down stocks that possess solid growth attributes. And we believe Cardiovascular Systems (NASDAQ:) and Itron (NASDAQ:) meet those qualifications. They both look undervalued at their current price levels and have the potential to generate outsized returns. Read on.The S&P 500 has climbed more than 20% this year, roughly double its long-term historical average. However, because we are now in what has historically been the stock market’s weakest month of the year, it could be wise for investors to shift some of their holding to stocks that have been beaten down but have the potential to rebound quickly.
The Federal Reserve’s conviction that inflation will subside, and an expected continuation of its accommodative monetary policy, should drive the performance of value stocks in the coming months.
Given this backdrop, we think Cardiovascular Systems, Inc. (CSII) and Itron Inc. (ITRI), which look undervalued at their current price levels, could be ideal bets now. These two stocks are well-positioned to rebound based on their strong fundamentals and solid growth attributes.
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