With analysts split on how the stock market is going to fare in the coming year, many are taking another look at some of the popular, foundational stocks that appear to be rallying for a comeback.
Whether via market disruption or economic woes, there are many stocks that took a sharp plummet earlier this year. Now may be the time to get into these stocks at more affordable rates.
Campbell’s Soup
Campbell’s Soup is an interesting company that has undergone a lot of change over the past decade. A timeless product, Campbell’s Soup fell 14 percent in early 2017 following poor earnings. Since then, however, the company has rebounded slightly — and the company really only requires a turnaround in profits to renew investor faith. Through 2017 it has undergone cutbacks to make it a leaner business, but it remains to be seen whether these cutbacks will have a significant impact.
Verizon
Verizon has had an exceptionally tumultuous year, though it looks to be ending 2017 on a high note. With its valuation rising much of the speculation is now based on its potential for dividend growth. Unlike other stocks on this list Verizon appears to be in the middle of its rally already; the question is whether this growth will continue.
Walmart
Analysts are extremely split on Walmart, and that could mean excellent opportunities… for the winning side. Earlier in the year, many analysts were skeptical about Walmart because of its competition with Amazon. And it’s easy to see why; the eCommerce giant has been exceptionally aggressive about expansion. If Amazon is a buy, it stands to reason that Walmart is not. But some recent moves by Walmart show that the future may not be written in stone. Walmart’s developments in online sales have shown that it isn’t going without a fight — and that it may be able to put up more of a fight than believed. In this area of disruption, Walmart has a lot to learn from predecessors such as Blockbuster.
Proctor and Gamble
There was a time when PG was a mainstay of many portfolios. As of now, PG has been underperforming for going on two years — but this is, of course, a company that isn’t going to go away. With a little correction this stock could become an excellent buy, and it further has the benefit of being a dividend stock.
General Electric
General Electric has been falling steadily for years, but many investors aren’t asking whether to buy the stock — they’re asking when. GE has undergone massive restructuring and is poised for a turnaround, but investors are split when trying to analyze the most attractive price for the stock. Many investors do believe the stock will rise, but the question is when and how much it will rise. Despite all of GE’s issues, it does have some major profit potential, especially for those getting in at rock bottom.
Target
Target stock dropped in 2017, and few are arguing that a lower valuation wasn’t needed. But, some analysts believe that the market overcorrected and that this correction is going to be resolved in the coming year. Target is a company with solid fundamentals that has been struggling to retain its footing in a changing marketplace. But with the closure of Toys R Us combined with some better operational strategies, Target stock may still have some room to grow.
Citigroup
According to Kiplinger, this top four bank is going to be on the rise. Like many other major banks, Citigroup experienced serious financial upset during the economic crash. But what has emerged is a leaner and well-structured organization that has been showing substantial recovery over the last few years. As a dividend stock, this may be a good buy for many investors.
Of course, no stock is a guarantee and these are only the stocks generating analyst interest. Nevertheless, these are stocks that have proven to be successful in the past and that show solid fundamentals — something that is generally shown to weather even volatile economic times. With many of these stocks being long-standing companies, now may be the time to get undervalued stock cheap. At the same time, some of these purchases may just be at the tail end of lasting disruption.
Regards,
Ethan Warrick
Editor
Wealth Authority
