While the Delta-variant-driven resurgence of COVID-19 cases in the United States has led to declines in the major stock market indices from their record highs last month, stock market experts remain optimistic about the market’s momentum in the coming weeks. So, Mechel Pao (MTL) and SilverBow Resources (NYSE:SBOW), which each possess strong fundamentals and solid growth attributes, could be wise bets this month. Let’s discuss.Investors’ concerns over the potential for COVID-19’s Delta variant to derail the economic recovery, and the Federal Reserve's next move concerning bond tapering, have weighed heavily on markets so far this month. However, Dubravko Lakos-Bujas, a strategist at JP Morgan, is positive on the equity market’s prospects. He expects the S&P 500 to reach 4,700 by the end of this year and surpass 5,000 next year on better-than-expected earnings.
Moreover, August's smaller-than-expected rise in the consumer price index (CPI) has calmed investors’ fear surrounding inflation. This, along with the Fed’s conviction that inflation will subside, should drive the stock market's performance in the coming weeks.
Given this backdrop, we think it could be wise to bet on fundamentally sound stocks Mechel Pao (MTL) and SilverBow Resources Inc. (SBOW).