3 Stocks To Buy That Popped While Markets Sank

Markets got off to a rough start on Monday morning, following a substantial Friday sell-off that led to losses for the Dow, S&P 500, and Nasdaq Composite. But today’s slide slowly began to turn around on the back of substantial gains from a few industry giants.

Friday’s slump was likely a result of the Bureau of Labor Statistics’ first jobs report of 2018. The agency noted that the U.S. added roughly 200,000 jobs in January, outpacing estimates. Wages also rose 2.9% on an annualized basis. This better-than-expected job growth helped send interest rates higher, which facilitated the sell-off.

Initially, Monday looked to be another poor day for the markets, but big moves from Apple (AAPL - Free Report) and other industry bellwethers helped markets slowly bounce back.

Along with Apple’s big gain, other notable companies saw their stock prices surge.

1.Amazon (AMZN - Free Report)

Shares of Amazon climbed over 1.50% to inch closer to an all-time high, which the tech powerhouse reached earlier this year. Amazon’s big move obviously helped lift markets, but with no major news to speak of, it seems that investors were likely buying up this ever-growing juggernaut on the dip. The company and its CEO Jeff Bezos also made headlines during the Super Bowl with a celebrity-packed commercial for Amazon Alexa.

AMZN is currently a Zacks Rank #3 (Hold), but the stock rocks “A” grades for both Growth and Momentum in our Style Scores system. Within the last seven days, Amazon has also experienced a substantial number of upward earnings estimate revisions for its current quarter and full fiscal 2018.

2. Ross Stores, Inc. (ROST - Free Report)

The off-price clothing giant saw its stock price jump over 1% Monday morning. Before today’s gains, shares of Ross Stores had soared over 22% within the last 12 weeks, on the back of strong third-quarter results and upped Q4 guidance. Luckily for investors, despite Ross’ strong run over the last three months, the company currently sits more than $5 below its 52-week high of $85.66 per share, leaving room for more momentum soon.

ROST is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Momentum and a “B” for Growth, helping the stock earn an overall “B” VGM score. Looking ahead to Ross’ upcoming fourth quarter, the company is expected to see its sales surge by 12.63% year-over-year, based on our current Zacks Consensus Estimates. The discount apparel chain is also projected to see its quarterly EPS figure climb nearly 21%.

3. Steel Dynamics, Inc. (STLD - Free Report)

Shares of this large U.S. steel producer and metals recycler popped over 2.60% to move within striking distance of its all-time high today. Investors seem to be confident in this company’s continued growth, which could be spurred further by increased manufacturing and building spending. What’s more, Steel Dynamics posted quarterly records in nearly every major category in its recently reported fourth quarter. This included a record number of total shipments and sales, as well as operating income of $1.1 billion.

Before today’s climb, shares of Steel Dynamics had jumped nearly 19% over the last 12 weeks. Looking ahead, the company has seen its earnings estimate revisions trend upward for the last 30 days. Steel Dynamics is also currently a Zacks Rank #1 (Strong Buy) and boasts a “B” grade for Growth.

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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Moon Kil Woong 6 years ago Contributor's comment

It's nice to hear about winners in a down day. It goes to show, that there are always the few players that don't necessarily follow the market beat. Keep a close eye for good buys and congrats to those that fish for them.