Markets are enjoying fresh, all-time highs. The Dow Jones drifted to around 40,050 yesterday before closing at 39,806.8. The strong performance in the major indexes gives investors few cheap stocks to choose from. Still, there are three stocks that fell recently to consider.
JP Morgan (JPM) backed off from the $205.88 high after hosting Investor Day. The firm is cautious about the 2023 tailwinds. It expects headwinds from regulator uncertainties, the weak consumer sector, and a conservative net interest income outlook. Stock markets did not expect the bank to say that it would not buy back shares at 2.3 times tangible book value.
Watch JPM stock dip further before starting a position.
In the insurance sector, the euphoria over Berkshire Hathaway (BRK-B) disclosing a $6.7 billion stake ended. CB stock fell by 3.7% on Monday. Bears are absent at a 0.68% short interest (as a percentage of float). Expect Chubb’s stock uptrend to resume in the coming days.
In the drug sector, West Pharmaceuticals (WST) is on a severe downtrend. The stock touched the $400 throughout the last year, only to sell off every time. At $342.76, valuations remain unfavorable. The P/E (non-GAAP) is 46.4 times. Still, the company raised its FY 2024 EPS guidance to $7.63 - $7.88 last month.
