2 ‘Must See’ Bear Market Stocks Right Now
Global stock markets have had a rough ten days. After months of havering performance, and lots of volatility, markets continue to be uncertain. The downturn isn’t completely unexpected, but it has dampened investors’ moods going into November. However, there are always opportunities — and there are a few bear market stocks that might result in decent gains.
2 Stocks Worth Examining in a Bear Market
Bear markets present a good opportunity for the investor who diligently researches a company’s value. There’s great value to be found during these periods and the old saying ‘buy low, sell high’ applies here. The savvy investor can nab long-term gainers at bargain prices—which many believe is the best part of a bear market.
Given the market’s declining sentiment, here are two stocks that show signs of surviving a bear market.
1. NVIDIA Corporation (NASDAQ:NVDA)
The dominant graphics card manufacturer, NVIDIA, has made a name for itself over the years for its innovations. Though it primarily serves the gaming market, it also produces products and services for the supercomputing, mobile, and automotive markets. For the most part, the brand is seen as a gaming-first company.
The company recently released its latest product line-up, the 3000 series, which has been all the news lately. These series of cards introduce cutting-edge technology that the market hasn’t seen before, which has helped business. The company has an 80% control of the market share, which doesn’t look like it’s going to fade soon.
NVIDIA’s market dominance and unmatched RnD might even have some investors call it an undervalued stock. This year’s earnings seem to suggest so.
- In a year when many companies have posted below-par results, NVIDIA has set records on multiple fronts.
- In its Q2 2020 earnings report, the company registered a revenue of $3.87 billion, up 50% from 2019.
- It also posted a record revenue of $1.75 billion for its data centers, up 167% from 2019.
- Earnings per diluted share was $0.99, up 10% from $0.90 from 2019, but down 33% from Q1 2020.
- It also paid $99 million in quarterly cash dividends in the second quarter.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Applied Materials is a US-based manufacturer of semiconductor chips, flat panel displays, smartphones, and solar products, among other things. The company’s products are globally used by major manufacturers of electronic products for over 50 years.
The company has recently pivoted towards producing materials for the green energy sector, which is on the verge of a renaissance period. Both its semiconductor and solar energy focus is a good sign, as sectors like IoT are fast becoming the norm.
Recent quarterly reports attest to this good growth. Furthermore, if you prefer dividend stocks, you have another reason to consider Applied Materials.
- The company’s Q3 2020 earnings report showed a quarterly revenue of $4.40 billion, up 23% year-over-year.
- It also said that it had returned $402 million to shareholders, including $200 million in share repurchases and dividends of $202 million.
- Earnings per share (EPS) was reported at $0.91 in the Q3 2020 report.
- In its Q2 2020 earnings report, the company assured investors by saying that its production line had been resuming to normal, a fact proven by the decent performance in Q3.
- Global semiconductor association SEMI predicts semiconductor equipment sales to hit $70 billion next year, strong growth that is a result of new fields of technology like 5G internet.
Bear market stocks can be a good opportunity for investors who focus on businesses that are fundamentally strong. Combining this with competent technical analysis can give investors a good sense of where the stock might go. The two stocks listed here are just suggestions — it can always be worth looking out for more on your own.
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What do you think of the stocks listed here? Can they offer good returns over the short term? Let us know in the comments below.
Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.