MINNEAPOLIS (Stockpickr) -- With the markets trading lower over the last six weeks, we are approaching the 10% lower mark defined to be a true market correction. The selling has spared few. In fact, many stocks are down substantially more than 10%.
As is typical of a market correction, there are plenty of companies with strong operating performance that are being caught in the downdraft. Contrarian investors can swoop in and buy these names at a discount. Soft patch in the economy or not, Wall Street expects these quality names to grow profits at a strong clip in the next year or two.
Related: 5 Stocks Setting Up to Break Out
In some cases, stocks that recently reported strong earnings reports have been sold aggressively. These are the names I would keep an eye on for future stock gains. If the soft patch is temporary, as the Federal Reserve recently stated, then these oversold stocks will bounce back.Here are five duds that should be studs.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV