On Monday, Chad Morganlander and Ari Wald said in a recent interview on CNBC’s Trading Nation that the Stocks in the energy and travel sectors did not do as well due to the surge in the delta variant of the coronavirus. In her opinion, some of the stocks in each sector were among the worst performers in July. However, they are optimistic that the tide could turn in August and stocks that were in the red last month could be back in the green in August.
Baxter stock will rebound
Notable S&P 500 members like Las Vegas Sands Corp. (NYSE: LVS), Diamondback Energy Inc (NASDAQ: FANG), and Carnival Corp (NYSE: CCL) fell 20%, 18% and 18%, respectively. Additionally, Baxter International Inc’s (NYSE: BAX) share price has fallen nearly 6% since early July.
Are you looking for quick news, hot tips, and market research?
Then sign up for the Invezz newsletter today.
Should investors take advantage of any of these names’ weaknesses? One name particularly stands out, according to Washington Crossing Advisors, co-founder and senior portfolio manager. Instead of investing in “low quality names”, Baxter should be bought after falling around 6% in July and 10% in the quarter. He explained:
The company is growing, and it will continue to grow in the future. The valuation also makes sense, because the company is trading with a forward P / E of 19. They are constantly growing and consistently profitable. They are not highly indebted, very predictable, and of high quality. That’s what to buy at this point in the market cycle.
Digital Turbine is a sure thing
Oppenheimer’s head of technical analysis Ari Wald prefers to buy another stock given the recent weakness: software company Digital Turbine Inc. (NASDAQ: APPS). On the show “Trading Nation”, Wald said that Digital Turbine stands out from other troubled stocks because of the “macro trends that support it.” He said:
After the big surge earlier in the year, there was a sharp correction from February to May and now the price is basing above its 200-day moving average and showing signs of an uptrend. For us, the key mark is $ 62. That’s the 200-day average. Traders should place their stops there, but otherwise the stock meets all the criteria and has rallied too. There is an opportunity here and with it some longer-term strength.
Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro
7/10
67% of retail investor CFD accounts lose money
–
–
–
–
