Even though the Fed has announced that it might accelerate its tapering of bond purchases, and omicron variant concerns are growing, many analysts remain bullish on the market's prospects in 2022. Thus, we think that based on their solid financials, beaten-down stocks Tredegar (TG), Educational Development (EDUC), and Core Molding Technologies (CMT) could bounce back in 2022. Let’s discuss these names.Investor concerns regarding the spread of the COVID-19 omicron variant have been fostering stock market volatility. The major stock market indexes ended lower yesterday as Federal Reserve Chairman Jerome Powell said that the Fed might consider accelerating the timing for the tapering of its monthly bond purchases.
Inflation climbed to a record high 6.2% in October, its highest level since December 1990. In its efforts to prevent inflation from spiraling out of control, the Fed is expected to cut its asset purchases and begin increasing interest rates. However, despite the market’s volatility, Goldman Sachs Group , Inc. (NYSE:GS) expects the S&P 500 to hit 5,100 by the end of 2022. In addition, JPMorgan Chase & Co.’s (NYSE:JPM) S&P 500 forecast for 2022 is among the most bullish on Wall Street.
Tredegar Corporation (TG), Educational Development Corporation (EDUC), and Core Molding Technologies, Inc. (CMT) are three stocks that have declined significantly in price on a year-over-date basis. However, based on their solid fundamentals, we think they could gain considerably in the near term.