When the stock market corrected sharply and entered bear market territory, many stocks that survived for decades fell with it. This indiscriminate selling created a mispricing in stocks. Investors should look at them once again.
General Electric (NYSE:GE) fell from $13 to the low $7.00 range. Its aerospace jet engine business may face delayed orders as airline travel volumes drop. But the CEO stabilized the company’s business and shed assets. This sets up the company for a strong rebound.
Ford (NYSE:F) will suffer weak sales as the COVID-19 containment worldwide hurts demand. But with the dividend yielding ~10%, income investors should start a small position, awaiting a rebound in the automotive sector.
Bausch (NYSE:BHC) lost half its value in the last month. The company has restored growth in B+L, especially through eye drugs and contact lenses. Salix is posting good, quarterly growth. The firm has a high debt that is manageable, especially after the rate cut.
Teva Pharmaceuticals (NYSE:TEVA) is getting swept from the selling pressure. In Q4, revenue stabilized and was up 1% Y/Y to $4.468 billion. Expecting operating and free cash flow growth this year. Teva has a heavy debt load but its cash flow may be used to reduce it
Disclosure: the author owns Ford stock.
