A guy who used Twitter Inc. (TWTR - Analyst Report) to manipulate the stock market has been indicted.

Think about that — two fake Twitter accounts were all James Craig needed to manipulate the stock market, which reportedly cost shareholders $1.8 million.

What does this really tell us about investors?

Most of them fall prey to random volatility, and any kind of uncertainty makes them anxious and fearful. So much so that any kind of news they hear about a company they have invested in makes them overreact.

As investors, we should carry out thorough research of the company we want to invest in — or at least check the sources that claim to do the same. (It’s YOUR money after all).

Lesson learned from the Twitter episode...

Looking Beyond

A company’s share price can increase because of extreme persistent excitement, such as during a bull market, or unnecessary murkiness as in a bear market.

The current market situation is volatile: Indexes move in a positive direction for a few days, then reverse and come back down. The trading range becomes tighter and tighter, while the market resists any breakout to the upside or breakdown below. This is the type of market that drives almost EVERYONE crazy.

What makes it even more volatile? Friday’s stellar jobs report. So stellar that this report has effectively cleared the way for the Fed to start raising interest rates at next month’s meeting.

The October jobs report release on Friday by the U.S. government’s Bureau of Labor Statistics (BLS) brings good news for all. Not only did the ‘headline’ jobs number come way ahead of estimates (271K compared with 185K), but the report’s internals in terms of wages and hours also looked favorable.

The unemployment rate inched down to 5% from 5.1% in the month before and appears to be headed toward carrying a 4-handle next month. Most importantly, the numbers from the last two weak jobs reports that started angst about the economy and the labor market were partly revised higher on Friday, indicating that the labor market wasn’t really losing as much steam as those reports had showed.

It goes without saying that this report has direct implications for the Fed. The central bank has been all but saying of late that it planned to lift-off in the mid-December meeting as long as the economy remained on track. The report checks the box, and if we are able to do the same next month, then the December lift-off is effectively locked in. This Fed move, when it arrives, will be the most anticipated action from the central bank. Nevertheless, it will add to market volatility.

Increased market volatility causes investors to overreact to both good and bad news, resulting in stock price movements that do not truly correspond with the company's long-term fundamentals.

As long as the fundamentals are in place, buy at a discount. Hold that stock as long as the fundamentals are strong, the true/intrinsic value hasn’t been arrived at, or a better investment has yet to be found.

Most importantly, buy in times of distress like a financial crisis or market volatility that has absolutely nothing to do with the long-term prospects of the company.

After all, as investors, our job is to uncover the truth.

So please don’t overreact. Days like these are when money is minted on the market, march ahead and scoop up strong stocks that will sail through this volatility. Don't be emotional -- instead be a smart investor and fortunes will find their way into your portfolio.

How?

Find great stocks. Don’t worry! Here is where Zacks can assist.

The choices could be narrowed down based upon a favorable Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) and promising value metrics (Value Score = ’A’ or ‘B’) using our new style score system. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or #2 offer the best of both worlds.

Based upon the above criteria, we have selected four stocks that could be promising picks while the index moves back and forth. Not only do these stocks have a favorable Zacks Rank #1 or Zacks Rank #2 but also a Value score of ‘A.’

What’s more, all of them belong the Superman sector right now: technology.

One saving grace of the otherwise weak earnings season was the strong performance at the Technology sector. Many of the bellwethers like Google’s parent Alphabet (GOOGL - Analyst Report), Facebook (FB - Analyst Report), Apple (AAPL - Analyst Report) and even Microsoft (MSFT - Analyst Report) came out with impressive third-quarter results and raised hopes of a sustainable momentum in this key space. The sector’s stock-price performance reflects this narrative – Tech stocks in the S&P 500 outperformed the index over the trailing 4-week period.

1. Intel Corporation (INTC - Analyst Report)

Zacks Rank #2

Shares of Intel moved up nearly 6% to-date post the earnings announcement on Oct 13. The world's largest chipmaker continued its winning streak by outperforming our estimates for earnings and revenues for the seventh consecutive quarter. It posted earnings per share of 64 cents on revenues of $14.47 billion that surpassed the Zacks Consensus Estimate of 59 cents and $14.23 billion, respectively.

The company expects revenues in the range of $14.3–$15.3 billion for the fourth quarter. Our current estimate is roughly in line with the mid-point of this range.

Another catalyst that makes Intel really attractive is that it belongs to the comp-tech Industry which has an attractive Zacks Industry Rank of 5. A top Zacks Industry Rank signifies that more stocks within that group are likely to have witnessed upward earnings estimate revisions, implying a bullish outlook.

2. Brocade Communications Systems, Inc. (BRCD - Snapshot Report)

Zacks Rank #1

Brocade Communications delivers industry-leading platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments.

This company belongs to the Comp-Networks industry, which has an attractive Zacks Industry Rank of 2.

3. TESSCO Technologies Inc. (TESS - Snapshot Report)

Zacks Rank #2

TESSCO Technologies is a leading provider of the services, products and solutions required to build, operate, maintain and use wireless voice, data, messaging, location tracking and Internet systems.

In the last reported quarter, the company’s earnings of 33 cents breezed past the Zacks Consensus Estimate of 26 cents.

This company belongs to the Communications-components industry, which carries an attractive Zacks Industry Rank of 12.

4. NeuStar, Inc. (NSR - Snapshot Report)

Zacks Rank #2

NeuStar offers essential clearinghouse services to the North American communications industry and Internet service providers across the world.

In the last reported quarter, the company’s earnings of $1.17 comfortably beat the Zacks Consensus Estimate of $1.00.

This company belongs to the Comm-networks software industry, with an attractive Zacks Industry Rank of 3.

5. RetailMeNot, Inc. (SALE - Snapshot Report)

Zacks Rank #2

RetailMeNot operates as a digital coupon marketplace connecting consumers with retailers and brands. It offers online deal information that helps users to purchase goods and services at a discount.

In the last reported quarter, the company posted a whopping positive earnings surprise of 183.33%.

This company belongs to the Internet-Services delivery industry, with an attractive Zacks Industry Rank of 8.

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