© Reuters. 4 Value Stocks to Load Up on During the Market Sell-Off
Concerns over the spread of the COVID-19 Delta variant in several countries are expected to keep the stock market on edge. However, because a long and deep market correction is not expected, it could be wise to bet on promising stocks that are now trading at discounts. For example, Honda Motor (HMC), Hill-Rom Holdings (NYSE:), Foot Locker (NYSE:), and Boise Cascade (NYSE:) look undervalued at their current price levels. So, we think these stocks could be solid bets now. Let’s discuss.COVID-19 cases have this month resurfaced in the United States, with the Delta variant spreading nationwide. As the number of daily cases spikes in several other countries too, the stock market could witness panic selling on investors’ concerns that the resurgence of COVID-19 could mar the economic recovery. All three major benchmark indices corrected to a degree last week. And the surged as high as 25 last week, its highest level since May.
Since the jitters around the rising COVID-19 cases could lead to several overpriced stocks suffering declines in the near term, it could be an opportune time to bet on quality stocks that are trading at reasonable valuations. This year, value stocks have performed quite well, as evidenced by the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 15.1% returns year-to-date.
So, we think it could be wise to bet now on fundamentally sound stocks Honda Motor Co. Ltd (HMC), Hill-Rom Holdings Inc . (HRC), Foot Locker, Inc. (FL), and Boise Cascade Company (BCC). They are currently trading at discounts to their peers.
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