After a peak in early May, the Wall Street has been turbulent, given the prospect of a prolonged trade war between the United States and China that deepened the global growth worries. President Donald Trump raised tariffs on Chinese goods worth of $200 billion and threatened to blacklist the Chinese firm Huawei Technologies, forbidding it from doing business with the American companies.

Notably, the S&P 500 registered the third consecutive weekly losses, marking its longest losing streak since December while the Dow Jones fell for a fifth straight week, representing the longest losing streak since June 2011.

While global fundamentals are worse, the U.S. economy is still on a firmer footing. This is especially true as the U.S. economy added jobs every month for 103 consecutive months, reflecting the longest-ever streak of job creation. The unemployment rate has dropped to 3.6% — the lowest in nearly 50 years — while wages rose at an annual rate of 3.2% in April, the ninth successive month of more than 3% growth. Additionally, the U.S. economy expanded at a faster-than-expected rate of 3.2% in the first quarter of 2019, marking maximum GDP growth to start the year since 2015.

All these factors will boost consumer spending and keep the economy on a solid growth path. Americans also appear optimistic as consumer sentiment hovered at a 15-year high in early May. Additionally, a surge in oil price and the Fed’s decision of not raising interest rates this year after seven hikes over the past two years also added to the bull thesis.

Against such a bullish backdrop, the dip in stock prices reflects a good entry point for investors. Below, we have highlighted five solid picks from both the ETF and the stock worlds that were in red over the past month but have a solid upside potential. All these have a Zacks Rank #1(Strong Buy) or 2 (Buy).

ETF Picks

iShares North American Tech-Multimedia Networking ETF (IGN - Free Report) — Down 13.2%

This ETF provides exposure to telecom equipment, data networking, and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. It holds 20 securities in its basket with each accounting for less than 10% share. The product has accumulated $142.2 million in its asset base while seeing a lower volume of around 40,000 shares a day. Expense ratio comes in at 0.47%. The fund carries a Zacks ETF Rank #1 with a High risk outlook.

First Trust Materials AlphaDEX Fund (FXZ - Free Report) — Down 8.4%

This product targets the broad materials sector and follows the StrataQuant Materials Index. It holds 51 stocks in its basket with none of the securities accounting for more than 3.82% share. From industrial exposure, commodity chemicals take the largest share with one-fourth of the portfolio while steel rounds off the second spot at 14.1% allocation. The fund has accumulated $130.7 million in its asset base and charges 47 bps in annual fees. It has a Zacks ETF Rank #2 with a Medium risk outlook.

First Trust Consumer Discretionary AlphaDEX Fund (FXD - Free Report) — Down 7.3%

This fund tracks the StrataQuant Consumer Discretionary Index, which employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index. This approach results in a basket of 110 stocks that are well spread out across components with each holding less than 1.9% of assets. The product is well spread across industries with hotels & entertainment services, media & publishing, other specialty retailers, diversified retail and automobiles & auto parts accounting for a double-digit exposure each. FXD has AUM of $356.4 million and charges a higher 64 bps in annual fees. It has a Zacks ETF Rank2 with a Medium risk outlook.

SPDR S&P 400 Mid Cap Value ETF (MDYV - Free Report) — Down 6.8%

With AUM of $1.4 billion, this ETF offers pure exposure to the mid-cap value segment of the U.S. equity market by tracking the S&P Mid Cap 400 Value Index. Holding 294 stocks in its basket, the financial sector takes the largest share at 24.7% while industrials, consumer discretionary and information technology also receive a double-digit exposure each. The fund charges 15 bps in annual fees and is a Zacks #2 Ranked ETF with a Medium risk outlook.

Invesco Dynamic Retail ETF (PMR - Free Report) — Down 6.6%

This fund offers exposure to the retail sector and follows the Dynamic Retail Intellidex Index. In total, the product holds 30 securities with each holding less than 6% of the assets. In terms of industrial exposure, specialty retail dominates the fund portfolio at 56% while food retail, hypermarkets and department stores round off the next three spots. The fund has accumulated just $7.2 million in its asset base and charges 63 bps in fees per year. It is a #2 Ranked ETF with a Medium risk outlook.

Stock Picks

Zumiez Inc. (ZUMZ - Free Report) — Down 22.8%

This is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women, who want to express their individuality through the fashion, music, art and culture of action sports, streetwear and other unique lifestyles. It saw no earnings estimate revision for the fiscal (January 2020) over the past month and has an expected growth rate of 3.3%. With a market cap of $544 million, Zumiez has a Zacks Rank #2 and VGM Score of A.

Devon Energy Corporation (DVN - Free Report) — Down 19.5%

With a market cap of $11.2 billion, this is a leading independent energy company engaged in finding and producing oil and natural gas. The stock saw positive earnings estimate revision of 17 cents for this year over the past 30 days with an expected growth rate of 69.8%. It has a Zacks Rank of 2 and an impressive VGM Score of A.

eGain Corporation (EGAN - Free Report) — Down 13.1%

It provides customer engagement solutions, offering web customer interaction applications, social customer interaction applications and contact center applications. The stock witnessed positive earnings estimate revision of three cents for the fiscal (ending June 2019) over the past month with an expected growth rate of 266.7%. With a market cap of $251.3 million, the stock has a Zacks Rank #1 and a solid VGM Score of B.

Tech Data Corporation (TECD - Free Report) — Down 11.8%

With a market cap of $3.4 billion, it is one of the world's largest technology distributors. The stock saw a rising earnings estimate of 7 cents for the fiscal (January 2020) over the past month with an expected growth rate of 4%. Tech Data has a Zacks Rank of 1 and an attractive VGM Score of A.

Diodes Incorporated (DIOD - Free Report) — Down 11.3%

It is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products, primarily to the communications, computing, industrial, consumer electronics and automotive markets. The stock saw positive earnings estimate revision of 30 cents for this year over the past 30 days and the projected growth rate being 17.6%. With a market cap of $1.6 billion, it is a Zacks #1 Ranked stock and has a VGM Score of A.