A falling market is always an opportunity to enter fundamentally strong stocks simply because there is always a chance to rise again as the short-term headwinds subside, leading to significant capital gain. This explains the concept of “Buy the Dip”, a basic principle of investing, popular among investors around the world.

Consider the current scenario where bourses have experienced a fall over the past year due to inflationary pressure, supply-chain disruptions, the ongoing Russia-Ukraine war, and labor market constraints. While this may come across as problematic for the average investor, the wiser counterparts will see this as an opportunity and grab stocks at a cheaper price as they know that the downtrend is momentary and the factors causing it are temporary

Given this backdrop, we believe WPP plc (WPP Quick QuoteWPP - Free Report) , Jamf Holding Corp. (JAMF Quick QuoteJAMF - Free Report) , Cvent Holding Corp. (CVT Quick QuoteCVT - Free Report) and Core & Main, Inc. (CNM Quick QuoteCNM - Free Report) are prudent picks at their current price levels.

A Weak Market Gives Access to Stocks at a Cheap Price

When markets fall, they give investors a great opportunity to buy stocks, which might have been comparatively much more expensive during a bull trend. That may sound very lucrative but also brings the risk of following the herd and ending up buying stocks that are too weak to see a recovery.

So, its very important to pick the right investments that are expected to remain fundamentally strong, based on your investment goals and risk profile.

Warren Buffett once said, “The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now, they will still be the cornerstones of investing.”

Well, for informed decision-making, you must do some research on the companies, industry, economy, markets and related factors.

Let’s Do the Research for You and Present Some Good Picks

WPP plc: This provider of communications, experience, commerce and technology services is down 27.5% in the past year.

The company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A, a combination that our research shows offers the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the company’s 2023 earnings has moved 3.7% north in the past 60 days. Earnings are expected to increase 5.2% year over year in 2023. WPP has a long-term (three to five years) earnings growth expectation of 10.3%.

Jamf Holding Corp.: This provider of a cloud software platform for Apple (AAPL) infrastructure and security platform is down 34.5% in the past year.

Jamf Holding carries a Zacks Rank #2 and has a VGM Score of B. The consensus estimate for 2023 earnings has remained unchanged in the past 60 days. Earnings and revenues are expected to increase 69.1% and 21.3% year over year, respectively, in 2023. JAMF has a long-term earnings growth expectation of 35.1%.

Cvent Holding Corp.: This provider of cloud-based enterprise event marketing, management and hospitality platform for meetings and events value ecosystem carries a Zacks Rank 2.

The consensus estimate for the company’s 2023 earnings has increased 15% in the past 60 days. Earnings and revenues are expected to increase 18.4% and 17.3% year over year, respectively, in 2023. The stock has declined 45.6% in the past year.

Core & Main, Inc.: This company is a distributor of water, wastewater, storm drainage, and fire protection products. It is down 29.4% in the past year.

The company currently carries a Zacks Rank #2 and has a VGM Score of A. The consensus mark for the company earnings in fiscal 2023 has remained unchanged in the past 60 days.

Earnings are expected to increase 124.1% year over year in fiscal 2023. CNM has a long-term earnings growth expectation of 13.8%.

 

   

Core & Main, Inc. Price, Consensus and EPS Surprise

   

       

   

   

Core & Main, Inc. price-consensus-eps-surprise-chart | Core & Main, Inc. Quote