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 doesn't change the firm's thesis on Nvidia. "Our understanding is that issues like this are common, the only difference here is the level of scrutiny on every step of the supply chain," Curtis wrote. NVDA YTD mountain Nvidia stock.
Nvidia will report second-quarter results in late August. Harvey also listed Meta as a potential bargain-buying candidate. Shares of the Facebook-parent company have gained roughly 45% in 2024, but have slumped 3% over the past month.
The social media firm surpassed Wall Street's estimates on the top and bottom lines in the second quarter, buoyed largely by a rise in advertising revenue. Meta also forecast third-quarter revenue in the range of $38.5 billion to $41 billion, compared to the $39.
1 billion anticipated by analysts polled by LSEG. META YTD mountain Meta Platforms stock. Eli Lilly has climbed 53% in 2024, but is down roughly 8% over the past month.
Lilly, the maker of weight loss and diabetes drugs Zepbound and Mounjaro, trounced analysts' estimates in the second quarter and raised its full-year revenue guidance. Other stocks on the list include streaming giant Netflix and ride-sharing provider Uber ..
