Should June bring forth even more market volatility, long-term value investors may finally have more opportunity to buy. As impressive as this market rally has been, it’s been somewhat tougher for new money to justify getting in at close to new highs. With some pundits calling for a market correction (a 10% drop), it seems wise to wait.
But by doing so, you may be overlooking oversold blue-chip stocks that are deals right now. Some large-cap stocks are now quite oversold, and even a market-wide correction may not nudge them to be markedly lower. In any case, investors should not time the market and instead take the stock market for what it is: a market of stocks.
Let’s look at three hard-hit, oversold blue-chip stocks that could be prime rebound candidates in the second half. Call them “blue-chip boomerangs,” if you will. McDonald’s (MCD) McDonald’s (NYSE: MCD ) and most quick-serve restaurant companies have been feeling a weight on their shoulders lately.
Price hikes and negative press have curtailed demand for quick and easy fast-food meals. Recently, McDonald’s received public flack for increasing price increases by close to 40% for your average menu item over the last five years. Even the most loyal consumers feel that the fast-food juggernaut has overextended itself in price.
For now, they’re not “lovin’ it,” they’ll probably eat elsewhere until McDonald’s can bring back affordable food. The $5 meal deal, which lands in June, is fantastic, but i.