Strategas Chief Investment Strategist Jason De Sena Trennert said this week, “We believe this is an opportunity for long-term investors to add exposure to companies that are not dependent upon ’the kindness of strangers’ as the business cycle develops.” The recent market pullback offers a great chance for investors to pick up high-quality stocks at better prices, says Strategas Securities. Despite last week’s market swings, the S&P 500 almost recovered all its losses, ending just 0.04% lower. However, many stocks are still below their highs from earlier in the year, which could be a good entry point for those looking to make the most of the current market.
Jason views this market volatility as an opportunity for long-term investors to buy high-quality stocks that aren’t as affected by market changes. His strategy targets companies trading below their 52-week highs, with free cash flow yields over 5% and strong earnings coverage. Key stocks include Etsy, Aptiv, and Qualcomm, all showing solid financials and notable declines from their recent highs.
Chevron stands out with a strong interest coverage ratio of 51 and a solid free cash flow yield of 6.3%. Analysts are optimistic about Chevron, with a potential price increase of about 23%. Qualcomm, currently 29% below its 52-week high, is expected to bounce back by nearly 30%. Additionally, Match Group, down 27% from its peak, has a promising outlook with a 10.7% free cash flow yield and a projected upside of 25.4%, according to analysts.
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