Back to top

Image: Bigstock

2 'Strong Buy' Stocks to Add to Your Portfolio in April

Read MoreHide Full Article

Today’s episode of Full Court Finance at Zacks dives into the broader stock market and the economy as we start the first full week of April. The episode then breaks down two ‘Strong Buy’ stocks, Target (TGT - Free Report) and Gildan (GIL - Free Report) , that investors might want to buy at discounts to start the second quarter and hold amid the economic uncertainty and market volatility.

Stocks have roared back over the last several weeks, as Wall Street bulls decided it was time to buy beaten-down names, with blue-chip tech stocks helping drive the charge. The comeback clouded the fact that the S&P 500 posted its biggest quarterly decline since the start of 2020, closing Q1 down 5%.

The comeback has pulled the Nasdaq out of bear market territory and on the cusp of leaving correction levels (down roughly 10.5% from its records), including Monday’s surge. Meanwhile, the S&P 500 is down just around 5% from its highs. Plus, 10-year U.S. Treasury yields are still extremely low by historical standards. These levels could help support stocks, especially when trying to outpace 8% inflation.  

The recent turnaround doesn’t mean 40-year high inflation, higher interest rates, supply chain setbacks, and the Russian invasion aren’t real concerns. In fact, selling and volatility could easily return.

But that doesn’t mean investors should stay on the sidelines because market timing is a difficult game. With this in mind, investors might want to focus on adding stocks that are still trading at solid discounts, pay a dividend, and operate a resilient business.

Target (TGT - Free Report) is the first stock on the docket. Target is coming off back-to-back years of massive top and bottom line growth and its outlook for 2022 remains strong as customers flock to its one-stop shops through traditional in-store shopping, curbside pickup, and delivery. Target’s margins remain comparatively impressive and investors might want to buy TGT stock at these discounted levels.  

Gildan Activewear Inc. (GIL - Free Report) makes clothing, including T-shirts and other basics that many people might not even know they own. Gildan’s customers include screen printers, wholesale distributors, traditional and e-commerce retailers, “global lifestyle brand companies,” and beyond. GIL bounced back big time in 2021 after a pandemic-hit 2020, and Zacks estimates call for more revenue and earnings growth going forward. Some of Gildan’s other fundamentals also make GIL stock worth considering at its current price.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Target Corporation (TGT) - free report >>

Gildan Activewear, Inc. (GIL) - free report >>