Thursday’s bounce was short-lived with the market giving up all of its gains to end what’s been a rough April on a low note. The Nasdaq closed regular hours 4.2% lower, one day after it jumped 3%, while the S&P 500 dropped 3.6%, following Thursday’s 2.5% climb.

The Nasdaq is hovering right near 52-week lows and in bear market territory, with the benchmark S&P 500 14% below its records. Many stocks are now trading beneath their pre-pandemic levels as Wall Street grapples with soaring prices and higher interest rates.  

Clogged up supply chains are dragging companies and the economy, and ongoing lockdowns in major Chinese cities are likely going to make matters worse. Even companies like Amazon are feeling the pressure as revenue growth slows.

The wave of selling and 10% or higher drops from market-movers and heavyweights can leave investors scared and on the sidelines. But it is not all doom and gloom.

U.S. consumer spending climbed in the first quarter. Plus, S&P 500 companies are set to keep growing their revenue, earnings, and margins in 2022, 2023, and beyond. And even with rising interest rates, investors might have to look to stocks in order to outpace 40-year high inflation.

Investors with long-term outlooks of years or more might consider using the current market selloff and fear as a chance to buy strong stocks they plan to hold for some extended period of time. The three stocks we look at today also offer solid value, dividends, and are set to grow rather steadily in the coming years.

Valero Energy Corporation (VLO Quick QuoteVLO - Free Report)

Valero Energy’s core business remains refining and processing crude to turn it into products such as gasoline and other petrochemical offshoots. VLO owns roughly 15 petroleum refineries in the U.S., Canada, and the U.K., with a combined throughput capacity of approximately 3.2 million barrels per day. Valero sells its products mostly in those regions, as well as Latin America. Alongside its refining segment, VLO runs a growing renewable diesel segment and an ethanol unit.

Valero is set to benefit from the continued use of oil, gas, and other petrochemical products for decades to come. And its joint venture, Diamond Green Diesel, for renewable diesel could start to play a larger role. VLO is able to produce diesel fuel, which powers trucks, buses, construction equipment, and much more, from recycled animal fats, used cooking and corn oil, and more.

Valero, like everyone in the oil and energy space, suffered in 2020. But VLO roared back in 2021, with revenue up 76% YoY to easily top its pre-covid levels and it swung from an adjusted quarterly loss of -$3.12 per share to +$2.81 a share. VLO then on April 26 topped our first quarter fiscal 2022 EPS estimates by 43% on the back of higher throughput volumes. Valero has now beat out EPS estimates by an average of 84% in the trailing four periods.

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Valero is benefitting from booming oil and gas prices and its refining margins are climbing. Since its recent Q1 release, VLO’s adjusted FY22 consensus estimate surged 30% higher, with 2023 up 5%. This extends its stretch of upward revisions and helps it land a Zacks Rank #2 (Buy). Zacks estimates call for its earnings to soar 348% this year on 39% higher revenue to hit $158 billion, to blow away its 2012 and 2013 records.

Valero lands “A” grades for Value, Growth, and Momentum in our Style Scores system and its Refining and Marketing segment is in the top 11% of over 250 Zacks industries. Plus, all 13 brokerage recommendations Zacks has for VLO are buys, with 12 coming in a “Strong Buys.” And VLO’s 3.40% dividend yield tops many other stocks in its industry and beats the 10-year U.S. Treasury’s 2.93%.

VLO’s yield appears even stronger when you consider that its stock has climbed 125% in the last five years to outclimb the larger Oil-Energy sector’s 30% and its industry’s 55%. Valero shares have surged 680% in the past decade vs. the S&P 500’s 345%. This run includes a 53% jump in 2022 and it popped to new records following its Q1 release.

Despite the huge run, VLO is trading roughly in line with where it has been for the past 10 years and near year-long lows at 12.1X forward 12-month earnings to come in right near its industry despite its outperformance. Valero also boats a solid balance sheet that’s helping it buy back tons of stock.

Humana Inc. (HUM Quick QuoteHUM - Free Report)

Humana is a health insurance firm that offers a wide range of plans for Medicare, Medicaid, individuals, families, and employers. The company operates through three core segments: Retail, Group and Specialty, and Healthcare Services. Humana’s clinical capabilities, resources, and tools include in-home care, behavioral health, pharmacy services, data analytics, wellness solutions, and beyond.

Humana has expanded its top-line at rather solid clips for the past 20 years, with only one tiny YoY decline mixed in. The company is poised to benefit from an aging U.S. population. Like Valero, Humana reported its first quarter FY22 results in the last week of April. HUM topped our Zacks EPS estimates by 18% on April 27 and the firm provided upbeat guidance.

The health insurance firm has beaten the Zacks quarterly earnings estimates for five years running. Peeking ahead, Zacks estimates call for its adjusted earnings to climb another 18% in 2022 and 12% higher in 2023. Meanwhile, its revenue is set to pop 11.5% and 9%, during this same stretch.

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Humana lands a Zacks Rank #3 (Hold) at the moment, alongside an overall “A” VGM score. Plus, its Medical – HMOs unit is in the top 30% of over 250 Zacks industries, and it pays a dividend.

Given Humana’s consistent expansion within a crucial industry in the U.S., it makes sense that Wall Street is high on the stock. At the moment, 12 of the 15 brokerage recommendations Zacks has are “Strong Buys,” with nothing below a “Hold.”

Humana shares lagged the market in the past year, having moved essentially sideways. HUM matched the S&P 500 during the trailing five years. And looking back over the last decade, HUM stock has ripped 505% higher vs. the market’s 345% and the larger Medical Care Market’s 80%.

On the valuation front, Humana trades at a 5% discount to its own five-year median at 18.1X forward 12-month earnings. This marks a 20% discount to its own highs and 11% vs. industry's current levels.

Micron Technology, Inc. (MU Quick QuoteMU - Free Report)

Micron is one of the largest makers of memory chips in the world. The company makes DRAM chips, which are featured within PCs, while NAND, or flash memory, is made for storing data and can be found in mobile phones and other devices.

The memory space has been historically even more cyclical compared to the broader semiconductor market and is heavily impacted by pricing. Luckily, Micron is becoming far less cyclical as it benefits from exposure and long-term secular growth within connected vehicles, EVs, data centers, 5G, and AI.

Micron's fiscal 2021 sales surged 29% and its adjusted earnings skyrocketed 115%. The firm posted solid second quarter FY22 results on March 29, topping our EPS estimate by 10%. More importantly, MU provided upbeat guidance amid the global chip shortage, as its pricing power improved across its portfolio.

Micron’s FY22 consensus earnings estimate is up 7% since its last report, with FY23’s 6% stronger. The memory chip maker’s fiscal 2022 revenue is projected to climb 21% to reach $33.6 billion, with FY23 expected to surge another 18% to over $39 billion. At the bottom end, MU’s adjusted earnings are projected to soar 57% on top of last year and 22% higher in 2023.

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Wall Street is super positive on Micron, with 14 of the 16 brokerage recommendations Zacks has at “Strong Buys.” MU, which lands a Zacks Rank #3 (Hold), grabs “A” grades for Value and Growth and a “B” for Momentum in our Style Scores system. The semiconductor power’s impressive balance sheet will help it continue to invest in growth and return value to shareholders through buybacks and dividends.

MU stock is has climbed 145% in the last five years to lag the larger Zacks Semiconductor market’s 172% climb. But it has easily outpaced the group in the past 10 years, with Micron up 950% vs. 630%, which also, of course, crushed the market’s 345%. MU stock got caught up in the selling so far this year, with Micron trading 30% below its January records at roughly $68 per share at the close on Friday.

Micron trades at a massive 64% discount to the larger chip segment right now. This is due, in large part, to memory’s more commodity-like standing in the space. Better still, MU is trading right around its own two-year lows and at a 75% discount to it own highs in the last few years.