Although the stock market indexes suffered a sharp decline yesterday, investors are buoyed by positive third quarter corporate earnings and a decrease in unemployment. So, we think it could be wise to bet on quality stocks Lufax (LU), Companhia Siderúrgica Nacional (SID), and Brinker International (NYSE:) that are expected to rebound after plunging more than 20% in price so far this year. Let’s discuss these names.
Yesterday’s decline in major stock market indexes was due to higher inflation data from consumer prices. Consumer Price Index saw a 6.2% increase in October, compared to a year prior. It was the largest rise in 30 years. However, major stock markets indexes rose at the start of this week.

One of the best things about this positive factor is Pfizer Inc. (NYSE:) announced on November 5 that its COVID-19 antiviral pill, when used with a widely used HIV drug, cut the risk of hospitalization or death from COVID-19 by 89% in high-risk adults who’ve been exposed to the virus. The number of Americans without jobs fell to 267,000, a pandemic low. And, according to a Factset report, the S&P 500 reported the second-highest revenue growth in the third quarter since 2008. These factors helped to boost investor sentiment.

Given this backdrop, we think it could be wise to add fundamentally sound stocks Lufax Holding Ltd. (LU), Companhia Siderúrgica Nacional (SID), and Brinker International, Inc. (EAT) to one’s portfolio. These stocks have experienced a more than 20% decline in their prices year to date, but they are in a good position to recover in the next few months.

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