Markets tumbled on Thursday following President Trump’s trade tariff announcement earlier in the session. The S&P 500, Dow Jones industrial average and Nasdaq composite all logged losses of nearly 2 percent each.
As more than half of S&P stocks sit in correction territory from losses incurred last month, some market participants are recommending bargain buys at these levels.
Shares of home improvement giant Lowe’s, which on Wednesday plunged after a disappointing earnings report, looks like a buy here to Mark Tepper, president and CEO of Strategic Wealth Partners.
“We’re really big on the infrastructure theme, we’re big on the entire housing theme right now, so within the infrastructure theme we like Lowe’s,” Tepper said Wednesday on “Trading Nation.” “Pending home sales fell 4.7 percent last month, not because of lack of demand, but rather for lack of inventory. That slack should boost real estate construction, home improvement and related sectors.”
Earnings came in below expectations, but he sees upside ahead and likes its relatively low price-earnings ratio of 15.5 times forward earnings.
Shares of regional bank KeyBank also look attractive to Tepper, as rising rates are set to benefit the regional banks as a group. Small-business optimism, too, should help with commercial and industrial loans picking up, Tepper said, and improving credit quality should also bode well for the name.
Chevron, coming off a historically bad month, looks good to strategist Matt Maley of Miller Tabak.
“The stock is way down compared to the underlying commodity; it made a nice double-bottom here, just below $110, and it’s bounced back. The bounce back hasn’t been as strong as it’s been in oil,” Maley said Wednesday on “Trading Nation,” but he does see upside for Chevron as crude oil prices hold up.
He also likes shares of McDonald’s, given a strong technical picture and its working off a historically overbought condition. The stock managed to trade above its 200-day moving average for the vast majority of 2017, and its recent weakness doesn’t come as a concern to Maley.
Equity markets in the U.S. fell across the board on Thursday.