After heavy losses last week, the fifth week in a row that the markets fell and the longest such losing streak in a decade, investors may be forgiven for some hesitance when it comes to buying in. Year-to-date, the NASDAQ has fallen ~26%, the S&P 500 is down ~17%, and the Dow, which performed best among the major indexes, has shed 12%.
It’s a market environment that does not appear conducive to a bullish strategy – but JPMorgan strategist Marko Kolanovic has put together a set of reasons for buying into equities now.
“The past week’s sell-off appears overdone, and driven to a large extent by technical flows, fear, and poor market liquidity, rather than fundamental developments… We see supports for our pro-risk stance from COVID reopening, policy easing in China, strong labor markets, light positioning, distraught investor sentiment, and healthy consumer and corporate balance sheets. It also appears that we’ve reached peak hawkishness from central banks,” Kolanovic explained.
Following Kolanovic’s lead, JPMorgan’s stock analysts have picked two stocks for a turnaround. They’ve upgraded these stocks from Neutral to Buy, a solid sign that investors should take notice. After using TipRanks’ database, we learned that each ticker has scored Buy ratings from other members of the analyst community as well. Let’s take a closer look.
Valvoline, Inc. (VVV)
First up is Valvoline, a global leader in the production and distribution of automotive fuels and lubricating oils, along with other petroleum derivatives, and chemicals such as engine coolants. The company has a major footprint in the quick-service oil change niche, operating the second-largest such chain in the US with over 1,500 owned and franchised locations.
Last year, Valvoline began the process of splitting its Global Products and Retail Sales into separate subsidiary companies. In an announcement coincident with the last quarterly report, management reiterated that the split is proceeding, and is expected to finish before the fiscal year ends in September.
Valvoline has seen a double…