The solid macroeconomic recovery and strong corporate earnings have fueled the stock market’s bullishness this year. And the Fed’s indication this week that it is in no rush to hike interest rates should further buoy investor sentiment. This backdrop suggests that we think quality stocks Hillenbrand, Genesco and Genesco could provide good returns in the near future. Keep reading.
This week’s major stock indices fell earlier due to concerns over Evergrande (the largest Chinese real-estate company), possibly leading to a collapse. However, the indices seem to be in a reverse direction, with the indexes rallying yesterday for the second consecutive day.

The S&P 500 rose 1.2%, with more than 85% of companies in the benchmark index notching gains. The Fed’s indication that it will keep supporting the economy until November boosted investors’ optimism. Moreover, the central bank’s signaling that it plans no hike in interest rates until next year should keep the stock market bullish through year’s end.

Given this backdrop, we think fundamentally sound stocks Hillenbrand, Inc. (HI) and Genesco Inc . GCO) which are undervalued at current prices could provide handsome upside in the short term. It could make sense to place a bet now on GCO.

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