3 Top Stocks To Buy At A Discount

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As market tailwinds are expected to cool off in the second quarter, investors are trying to figure out what’s next. While there are no major catalysts to sustain a long-term run up like last year, investors need to know where to look to find gains. 

Stocks across the board have frothy valuations, meaning if you know where to find value, you can still generate substantial gains this year. And you don’t need to go searching into unknown micro-caps for those returns.

There are three top companies that I’ve been tracking that have strong growth drivers and have been still trading at a discount. Walmart Inc. (WMT), Novartis AG (NVS), and Merck & Company, Inc. (MRK) are all undervalued by the market and poised to rise above the fray over the next two quarters. But first, let’s recap the week before I dig deeper into these companies.

Market Commentary

Stocks were mixed Monday, March 29 as investors assessed the potential impact of a massive margin call for Hedge fund Archegos Capital Management. The fund had to liquidate positions that were worth near $30 billion. There is concern that other funds are over-levered. With little news on Tuesday, stocks were mostly down. Investors were awaiting details on the President’s infrastructure plan.

The market was mixed on Wednesday as details emerged from the infrastructure-spending plan. While the plan is considered a positive for consumer spending and employment, the corporate tax hike weighed on investors’ minds. Investors appeared to have a change of heart recently, with stocks rising on the plan’s economic growth expectations. The S&P 500 traded above 4,000 for the first time.

Market Outlook

As stocks posted a solid first quarter, many strategists believe the market is running out of growth drivers. The previous tailwinds of COVID-19 vaccinations, government spending, and fourth-quarter earnings have likely peaked.

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