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.
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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.