This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks for an Oversold Market

NEW YORK ( TheStreet) -- If you have been watching the stock market over the past several weeks, you've noticed Wall Street is not happy -- and for that matter neither am I. However, it's for two separate reasons.

Lately investors have become too skittish for my taste and seemingly have little understanding of what is really going on in the market. As Wall Street continues to appear on edge and wanting to punish anything that moves, I wonder how is it possible that the Dow can be down for the year as corporate profits everywhere appear to be on the rise? It doesn't make sense and shows that Wall Street lacks understanding on how to properly appraise value.

Be that as it may, one person's trash is another person's treasure, or as Buffett like to say, be greedy while others are fearful. So in my bargain-hunting mode, I have started to look for a few names that have become significantly discounted from their true potential. Not only do these companies offer considerable amount of value, but they present excellent margins of safety while also offering excellent yields.

I have targeted two networking companies in Cisco (CSCO - Get Report) and Hewlett-Packard (HPQ), two chip names in Intel (INTC - Get Report) and Qualcomm (QCOM - Get Report) and closing out my list with software giant Microsoft (MSFT - Get Report).

First, in the networking realm, HP and Cisco are the clear front-runners within their own segments such as routing and switching. They are also well positioned for markets such as the cloud that is soon to emerge and dominate both consumer and corporate enterprises.

Cisco and HP at this point are excellent buys as both have become outstanding turnaround stories -- even though Wall Street has yet to latch on -- in particular to Cisco which continues to churn out one excellent quarter after another while maintaining margins that continue to lead the industry by almost 50%.

For HP -- what can be said that has not already said? The company recently reported better-than-expected earnings results that beat analysts' estimates both on the top and bottom lines -- prompting many naysayers to affirm that Meg Whitman was indeed the right person for the job. The company is combining its PC and printing divisions and recently confirmed that it will begin eliminating 27,000 jobs in a cost-saving measure of as much as $3 billion to $3.5 billion by 2014.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSCO $28.21 0.00%
HP $55.64 0.00%
INTC $28.35 0.00%
MSFT $45.35 0.00%
QCOM $61.98 0.00%

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs