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Time to Buy These Highly Ranked Stocks as Markets Selloff
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Most of the major stock market indexes dropped over -1% on Wednesday as the Consumer Price Index (CPI) rose 3.5% year over year in March and was up 0.4% from the previous month.
Accelerating from February’s 3.2% YoY uptick, another hot inflationary reading is starting to leave doubt that the Fed will implement three rate cuts in 2024 and may instead shift to two cuts later in the year.
While this was the catalyst for today’s broader market selloff here are two highly-ranked Zacks stocks that were able to withstand the pullback and should serve as viable buy-the-dip candidates if the opportunity is presented.
Investors searching their watchlist to see if Nvidia’s stock cratered in today’s market selloff may have been surprised to see NVDA up +2%. Although Nvidia’s stock is 12% from its highs of $974 a share seen in early March, today’s resistance was reassuring as NVDA was able to hold its 50-day moving average and is comfortably above the 200-day.
Image Source: Zacks Investment Research
Still, with Nvidia right at the cusp of its 50-day moving average, meeting this SMA (Simple Moving Average) and bouncing upwards after doing so is typically considered a long-term entry point. It wouldn’t be surprising if this scenario materializes given that earnings estimate revisions are noticeably higher for the AI chip leader over the last 60 days and the Average Zacks Price Target of $912.12 a share suggests 7% upside from current levels.
Pointing out Global Partners' “A” Zacks Style Scores grade for Value is very intriguing considering crude oil prices have stayed on a bullish course towards $90 a barrel which many analysts see by the summer. Notably, the energy sector was higher on Wednesday with Global Partners stock up +1% as broader markets fell.
Image Source: Yahoo Finance
Controlling one of the largest terminal networks of refined petroleum products on the East Coast, Global Partners’ annual earnings are expected to rise 4% this year and are projected to jump another 14% in FY25 to $4.47 per share.
More compelling is that GLP trades at 11.4X forward earnings which is a nice discount to the Zacks Oil and Gas-Refining and Marketing-Master Limited Partnerships Industry average of 13.4X and the S&P 500’s 21.9X. Plus, Global Partners stock trades well below its decade-long P/E highs and at a 38% discount to the median of 18.6X. It’s also noteworthy that GLP has a 6.26% annual dividend yield and earnings estimate revisions are slighlty up in the last two months for both FY24 and FY25.
Image Source: Zacks Investment Research
Bottom Line
Investors may be on edge for more market volatility but buying the dip in Nvidia or Global Partners stock should pay off if the opportunity is presented. To that point, both stocks currently sport a Zacks Rank #1 (Strong Buy).
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Time to Buy These Highly Ranked Stocks as Markets Selloff
Most of the major stock market indexes dropped over -1% on Wednesday as the Consumer Price Index (CPI) rose 3.5% year over year in March and was up 0.4% from the previous month.
Accelerating from February’s 3.2% YoY uptick, another hot inflationary reading is starting to leave doubt that the Fed will implement three rate cuts in 2024 and may instead shift to two cuts later in the year.
While this was the catalyst for today’s broader market selloff here are two highly-ranked Zacks stocks that were able to withstand the pullback and should serve as viable buy-the-dip candidates if the opportunity is presented.
Image Source: U.S. Bureau OF Labor Statistics
Nvidia (NVDA - Free Report)
Investors searching their watchlist to see if Nvidia’s stock cratered in today’s market selloff may have been surprised to see NVDA up +2%. Although Nvidia’s stock is 12% from its highs of $974 a share seen in early March, today’s resistance was reassuring as NVDA was able to hold its 50-day moving average and is comfortably above the 200-day.
Image Source: Zacks Investment Research
Still, with Nvidia right at the cusp of its 50-day moving average, meeting this SMA (Simple Moving Average) and bouncing upwards after doing so is typically considered a long-term entry point. It wouldn’t be surprising if this scenario materializes given that earnings estimate revisions are noticeably higher for the AI chip leader over the last 60 days and the Average Zacks Price Target of $912.12 a share suggests 7% upside from current levels.
Image Source: Zacks Investment Research
Global Partners (GLP - Free Report)
Pointing out Global Partners' “A” Zacks Style Scores grade for Value is very intriguing considering crude oil prices have stayed on a bullish course towards $90 a barrel which many analysts see by the summer. Notably, the energy sector was higher on Wednesday with Global Partners stock up +1% as broader markets fell.
Image Source: Yahoo Finance
Controlling one of the largest terminal networks of refined petroleum products on the East Coast, Global Partners’ annual earnings are expected to rise 4% this year and are projected to jump another 14% in FY25 to $4.47 per share.
More compelling is that GLP trades at 11.4X forward earnings which is a nice discount to the Zacks Oil and Gas-Refining and Marketing-Master Limited Partnerships Industry average of 13.4X and the S&P 500’s 21.9X. Plus, Global Partners stock trades well below its decade-long P/E highs and at a 38% discount to the median of 18.6X. It’s also noteworthy that GLP has a 6.26% annual dividend yield and earnings estimate revisions are slighlty up in the last two months for both FY24 and FY25.
Image Source: Zacks Investment Research
Bottom Line
Investors may be on edge for more market volatility but buying the dip in Nvidia or Global Partners stock should pay off if the opportunity is presented. To that point, both stocks currently sport a Zacks Rank #1 (Strong Buy).