I think it is a good idea to buy some undervalued long-term stocks on weakness before they start to make a recovery. The current market environment is quite unforgiving for many stocks as investors have piled into just a few tech stocks . However, as the market cycle reaches an inflection point after the rate cuts, I believe many of these long-term stocks will deliver huge gains.
Moreover, many of these stocks have very little downside risk as they have seen significant selloffs. This makes it very appealing compared to the long-term upside many of these businesses have. Profitable companies with an established brand are highly unlikely to disappoint you in the long run if you hold them through the storm.
Thus, here are seven long-term stocks that are trading at bargain levels: CVS Health (CVS) CVS Health (NYSE: CVS ) operates one of the nation’s largest health services companies. The stock has tumbled over 44% from its peak as the company faces significant headwinds. CVS posted disappointing Q1 results , with EPS of $1.
31, missing estimates by 38 cents, largely due to surging Medicare Advantage costs that management failed to anticipate. However, I believe the steep selloff provides an attractive long-term buying opportunity. CVS should benefit as interest rates decline, reducing the burden of its $82 billion debt load.
Management is also taking decisive action to rein in Medicare expenses. You shouldn’t scoff at the rate-cut tailwinds, since interest expenses ate up nea.