Take a closer look at these stocks on the correction: the best stocks to hit the January slump
January is not uncommon for the stock market to experience post-holiday sell-offs. This time was no exception. To name a few quality companies that were growing nicely throughout the year, but last week they were hit by a bust. Now you can buy them at attractive prices.
The selection criteria are as follows. The stock rose over the past year by more than 30% (better than the market), it updated its high by early January (it participated in the New Year rally), and then fell by at least 10%, but held above its 200-day moving average (like the market as a whole).
The U.S. market
A frequent visitor to such rankings, it has added 45% over the year, despite the current decline. The company had a good “ride” on the holiday rise in indices, reaching $334 a share before the New Year. It now stands at $314.7, almost 6% below where it left to correct.
On Monday it was worth even less, down as much as 11.5% from its local high, but it bounced back sharply. It is not the fact that the correction will end there (it will depend on the news from the Fed and not only), but the levels to buy are rather interesting.
⭐️Estee Lauder (EL).
A powerful paper from the protective asset segment. A manufacturer of hygiene and cosmetics with a capitalization of more than $120 billion. It’s in the S&P 500. Its stock is up 30% over the year and hit a 12-month high of +44% on Jan. 4. The chip is now at a very good drawdown, more than 10% below its recent peak. Good choice in a changing cycle in the U.S.
⭐️S&P Global (SPGI)
A system-forming company in the stock market. Owner of the eponymous index of the 500 largest U.S. companies (as well as Dow Jones). Rating agency, formerly called Standard & Poor’s (one of the three largest in the world) – is also the possession of SPGI. The stock added more than 45% over the year before falling into a slump. You can make up to 10% on an upward bounce.
One of the top securities in the cybersecurity segment, and now also solidly cheaper. Unlike other tech stocks, FTNT didn’t follow the NASDAQ down in early December but made its all-time high during the New Year’s rally, gaining 28% in less than a month. It lost almost 20% during the January correction, but has already repaid half of the drawdown.
⭐️D.R. Horton (DHI).
The largest homebuilder in the United States. Just before the New Year, it renewed its all-time high just above $110 a share, from which it then went into a steep peak until it hit the 200-day midline. The last session was on the plus side, and today the rebound is active, but the stock is still under $97, meaning the potential for a rebound comes in at up to 13%. Mid-target investment houses are giving $120 and that’s up to another 10% upside.