5 Stocks With Great Bounce-Back Potential In 2021

The markets are clearly euphoric about the coronavirus vaccines and the wonders they will do for demand and consumption this year.

But COVID didn’t treat all sectors alike. Tech, auto, and construction for instance actually benefited. And the best part is that there are strong underlying drivers in each of these markets that point to sustained strength.

This year these hot sectors will be joined by others like medical, aerospace, industrial, and basic materials. That means we are looking at a large number of bounce-back stories in addition to the secular growth stories.

And bounce-backs always mean near-term gains for investors.

So today, I thought I’d keep it simple. I thought I’d pick on companies that were either beaten down or subdued by the pandemic last year, but are expected to jump back and post attractive growth this year. All the better if they also offer income and have attractive valuations. So, let’s get started-

Zacks #1 (Strong Buy)-ranked Bassett Furniture Industries, Inc. (BSET Quick Quote BSET - Free Reportwent from a 45 cent profit in 2019 to a 44-cent loss in 2020. But guess what. The analyst providing estimates for the company expects it to generate a $1.38 profit this year. Talk about a turnaround story!

The company’s operating focus is on affordable custom-built furniture that is ready for delivery in the home within thirty days. Its stores offer the latest on-trend furniture styles, more than a thousand upholstery fabrics, and coordinated decorating accessories. Customers can choose what they need and have a design specialist visit their homes at no extra cost.

The Furniture industry to which Basset belongs is in the top 10% of Zacks-classified industries. And as you probably already know, about half a stock’s price appreciation is related to the group that it’s in.

The stock’s Value, Growth, and Momentum Scores are B, A, and C, respectively. So it is suitable for most investors.

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