As COVID cases continue to fall and earnings reports from corporations look positive, investors are showing renewed optimism about the market. However, stocks can be way too overvalued. Investors might consider investing in mid-cap stocks, such as Assurant , Inc., Jabil Inc., and First American Financial Corporation have all reported impressive earnings reports for the third quarter. Despite ongoing supply chain disruptions, record-high inflation, and continuing worries about investors, they are still able to rally major stock markets indexes. According to a FactSet report, more S&P 500 companies are beating EPS estimates for the third quarter than average and beating EPS estimates by a wider margin than average.
The Conference Board Consumer Confidence Index was at 113.8 as of October 26. This is an increase from the September 109.8. Many stocks now have valuations that do not reflect their potential growth prospects due to the positive market. Many stocks trade at acceptable valuations. Rob Arnott, Research Affiliates Chairman and Founder, believes that value stocks may provide 5-10% annual return for the next decade.
You might be smart to place your bets on mid-cap quality stocks Assurant, Inc., Jabil Inc., or First American Financial Corporation (FAF), as they are currently undervalued. The stock has a Buy rating of overall in our POWR Ratings.
Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.