Markets stayed depleted throughout this trading day, though all major indexes built back from session lows around the opening bell. Despite very strong labor market numbers from Weekly Jobless Claims and ADP (private-sector payrolls reported, the Dow closed -0.07%, snapping a five-day win streak, the S&P 500 was -0.36%, the Nasdaq lagged all indexes, down 1.01% on the day, while the small-cap Russell 2000 sold off 0.81%. ADP Quick Quote ADP - Free Report) Perhaps tomorrow morning’s nonfarm payroll figures — should they come in as healthy or more so than this morning’s batch — will provide the uncorking to higher market gains throughout, as this will be further evidence we are experiencing the Great Reopening in real time. Then again, perhaps that’s when we’ll start hearing about inflation fears marring outlooks for companies that otherwise are largely expecting easy year-over-year comps. To wit, lululemon ( posted solid beats on Q1 earnings reported after the closing bell today: $1.16 per share outperformed the 91 cents expected, while revenues of $1.23 billion strode past the $1.12 billion in the Zacks consensus. Guidance was raised for both next quarter and full-year earnings and sales, as the company performs well off easy comps from a year ago, and enjoys its growth strategy in the U.S. (+82%) and International (+125%). Shares are up 3% in the after-market. LULU Quick Quote LULU - Free Report) Semiconductor major Broadcom ( also topped expectations in its fiscal Q2 report this afternoon: $6.62 per share surpassed the $6.44 estimate on $6.61 billion in revenues, up 15% year over year and above the $6.51 billion projected. Semiconductor solutions grew 20% from a year ago to $4.82 billion. The company, which has not missed on quarterly earnings going all the way back to our records in Q1 2014, are up modestly in late trading. They are +9% year to date, +50% in the past year. AVGO Quick Quote AVGO - Free Report) Cybersecurity leader Crowdstrike ( put up better-than-expected Q1 numbers after the market close, as well: 10 cents per share topped the 6 cents expected at the 2 cents per share in the year-ago quarter. Sales of $303.8 million easily slipped beyond $292.2 million, and next-quarter and full-year guidance were both raised. The company’s trailing four-quarter earnings beat was 193%. Shares are flat in the late session; +125% from this point last year. CRWD Quick Quote CRWD - Free Report) Docusign ( shares, however, are up 6% in after-market trading on its big quarterly beat on top and bottom lines: 44 cents per share zoomed past the 27 cents expected and 12 cents per share reported a year ago. Revenues of $469 million were also a big beat from the $434.6 million in the Zacks consensus. The company has only posted one earnings miss since its IPO back in 2018, but shares are still down 12.4% year to date. DOCU Quick Quote DOCU - Free Report) Questions or comments about this article and/or its author? Click here>> Some Discounted Stocks Likely to Bounce Back This Summer In the current situation, investors should definitely buy the dip in the sector. However, it’s not easy to pick these underperformers as amateurish screening might lead to a value trap, ignoring factors like upside potential and fundamentals. Hence, we have taken the help of the Zacks Stock Screener to make this task relatively simpler. Amid the current market correction, we have shortlisted five stocks from the relevant sectors that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) but are undervalued in terms of several metrics.
You can see the complete list of Zacks #1 Rank stocks here.