Recent market turbulence has unearthed some bargain prices for momentum stocks, according to Wells Fargo. The major averages have sought to make a comeback following a vicious global sell-off on Monday that was powered by worries over the U.S.
economy and the unwinding of the yen carry trade. Dip buyers stepped in on Thursday, lifting the S & P 500 to its best session since November 2022. Wells Fargo analyst Christopher Harvey remains cautious on the broader market, however.
He suggests that investors "buy stocks, not the stock market." Individual names that have become cheaper in the market rout — including high-flying Meta Platforms — might be primed for purchase. "It is hard for us to pound the table and advise buying the dip now as this week's events, traditional pre-Fed price action, and the lack of catalysts keeps us cautious," Harvey wrote on Friday.
"However, we see selection opportunities. For example, we believe the 9% pullback in the overweight-rated Comm Services sector is an attractive entry point." Here's a closer look at stocks Wells Fargo is eyeing in light of recent market volatility.
Nvidia has advanced an impressive 110% in 2024. Shares have pulled back about 20% over the past month as investors became concerned over the artificial intelligence boom and when will it pay off. Harvey isn't alone in his assessment that a pullback in Nvidia could present a buying opportunity for investors.
Jefferies analyst Blayne Curtis said that fears of an AI chip delay .