As if the worst first five-day start to a year was not enough, Friday’s slump dragged the major benchmarks to the worst-ever first 10-day start to a year. Though the Nasdaq has less exposure to the energy sector, dampened investor sentiment led by the continued slump in oil prices are affecting the performance of the tech-heavy index this year.

China-led global growth worries are also not sparing the benchmark, which is down nearly 5.7% since the start of 2016. And to top it all, the Intel stock dealt an unprecedented blow to the index in spite of the fourth-quarter earnings beat.

In this backdrop, investors may find it profitable to invest in the Nasdaq components with strong fundamentals that are now available at discounted prices due to the sell-off.

Lingering Concerns 

If persistent slump in oil prices and a weak Chinese economy are the main market culprits of this year, some recently released disappointing economic data on the domestic front are also to be blamed.

Coming to the first issue, rising expectations on the lift-off of Iranian sanctions, which happened yesterday, dragged down the energy sector, which in turn weighed on the benchmarks on Friday. While West Texas Intermediate (WTI) crude plunged 6.1% to a 12-year low level of $29.42 per barrel, Brent crude declined nearly 0.1% to $31.01 a barrel. 

Chinese disappointing data on new bank loans also increased concerns regarding the already weak economy. Official data showed that the volume of new loans in December translated to 597.8 billion yuan ($90.7 billion), down from November’s tally of 708.9 billion yuan. It is speculated that sluggish economic growth conditions and a sharp increase in bad debt had a negative impact on business activities last month, which in turn affected the volume of new loans.

Matters were made worse by discouraging domestic economic data that cast a pall over the markets on Friday. The New York Empire State Index – an important indicator of manufacturing activity – plunged from negative 6.2 last month to negative 19.4 in January – incidentally, the lowest level since Apr 2009. The Federal Reserve reported that industrial production declined for the third-consecutive month in December by 0.4%. Production reportedly dropped at an annual rate of 3.4% last quarter. The retail space too was affected with sales declining 0.1% in December, raising concerns over consumer spending.

Intel Weighs on Tech Stocks      

A decline in Intel Corporation’s (INTC - Analyst Report) shares was the major drag in the technology sector on Friday. Shares of Intel plunged 9.1% despite although fourth-quarter earnings of 74 cents per share came in 11 cents higher than the Zacks Consensus Estimate. Revenues rose 1% year over year to $14.9 billion and were well ahead of our estimated $14.8 billion. However, gross margin fell to 64.3% from 65.4% in the year-ago quarter.

Moreover, Intel expects revenues in the range of $13.6–$14.6 billion for the first quarter of 2016. The midpoint is well below the Zacks Consensus Estimate of $13.76 billion. The weakness in the PC market, which accounts for the major portion of Intel’s revenues, is expected to persist going forward, as soft global economic growth, especially in China, may continue to hurt demand for personal computers and servers and thereby weigh on the company’s top line. Intel’s disappointing performance on Friday dragged down the broader technology sector – Technology Select Sector SPDR ETF (XLK - ETF report) – by 2.8%.

5 Great Value Stocks

In fact, the significant decline since the start of this year has provided an excellent opportunity for investors to grab fundamentally strong stocks at discounted prices.

Thanks to our new style score system, we have been able to identify value stocks which have incredible potential in the near term. Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best opportunities in the value investing space.

Here we have chosen five Zacks Rank #1 Nasdaq stocks which also have a Value score of ‘A.’ We have also considered the price/earnings metric (P/E) – an important factor for value stocks. This ratio shows investors how much they are paying for each dollar of earnings generated.

Gilead Sciences Inc. (GILD - Analyst Report) is a biopharmaceutical company engaged in discovering, production and commercialization of medicines throughout the globe. The company has a P/E ratio of 7.91%, significantly lower than the industry average of 25.06%.

Hawaiian Holdings Inc. (HA - Snapshot Report) is engaged primarily in the scheduled transportation of passengers, cargo and mail. HA has a P/E ratio of 8.51%, compared than the industry average of 8.71%.

Central Garden & Pet Company (CENT - Analyst Report) is a leading innovator, marketer and producer of quality branded products for the lawn & garden and pet supplies markets. The company has a P/E ratio of 13.42%, lower than the industry average of 16.09%.

Photronics Inc. (PLAB - Snapshot Report) is a leading worldwide manufacturer of photomasks. PLAB has a P/E ratio of 14.09% compared with the industry average of 16.45%.

Exactech Inc. (EXAC - Snapshot Report) is involved in developing, manufacturing and selling of orthopedic implant devices, related surgical instrumentation and biologic services worldwide. The company has a P/E ratio of 15.06%, lower than the industry average of 22.36%.