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Coronavirus Stock Market Sell-Off: Should You Buy Now?

  • (0:30) – When Should You Buy Into The Stock Market?
  • (5:45) – How To Invest While The Stock Market Falls
  • (11:05) – Stocks To Watch When The Recovery Comes
  • (20:40) – Episode Roundup: UTLA, HD, JILL, BBBY, JCP, V, MA, TWTR, MTCH, FB

Welcome to Episode #217 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo, due to the coronavirus and work-from-home issues, to discuss whether this is a buying opportunity in stocks.

It’s been a wild three weeks on the US stock markets, with stocks now in a bear market retreat due to uncertainties surrounding the global coronavirus pandemic.

A lot of investors are asking:

Should they be buying stocks right now?

Lots of Uncertainty

The honest answer is, no one knows what is going on right now in the US economy.

Fundamentals, such as earnings, have been thrown out the window.

Even individual companies are taking it day by day with some literally reporting earnings and giving guidance, only to withdraw that guidance just days later.

But that doesn’t mean long-term investors can’t start nibbling at some stock deals, while being aware that this may not yet be the bottom.

Buy Strength, Not Weakness

Some companies already had business or financial problems going into the coronavirus outbreak.

JC Penney (NYSE:JCP) was already in the midst of a turnaround after several years of falling sales. How will consumer weakness impact any success at doing that?

It was already closing stores, getting rid of inventory and trying new marketing techniques.

But that was all while the consumer was still on top of the world.

Meanwhile, other retailers like Ulta (NASDAQ:ULTA) , have strong cash balances. Ulta had $500 million in cash on hand as of the end of fiscal 2019.

Superstar Stocks on Sale?

Two superstar stocks of the last decade, Visa (NYSE:V) and Mastercard (NYSE:MA) , are now on sale.

Both lowered guidance a few weeks ago but impacts from the coronavirus have gotten more extensive since then.

Will we see further cuts even before their upcoming Q1 earnings reports?

Social Media Companies Set to Shine

With so many people working from home and doing social distancing, people will still want to keep up with friends and family.

Connections will be important.

There’s no better way to do that than via social media.

And it’s not going to be shut down, like a restaurant or retailer may be, in the crisis.

Will companies like Twitter (NYSE:TWTR) see a surge in members and usage?

What else do you need to know about buying stocks right now?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of ULTA in her personal portfolio.]

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >

Ulta Beauty Inc. (ULTA): Free Stock Analysis Report

J. C. Penney Company, Inc. (JCP): Free Stock Analysis Report

Mastercard Incorporated (MA): Free Stock Analysis Report

Visa Inc. (V): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

Original post

Zacks Investment Research

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