Improving macroeconomic metrics have lately triggered a stock market slump because investors expect the Fed to tighten its monetary policy. However, projected GDP growth and rising consumer spending should help the market rebound soon. Therefore, we think it wise to buy Salesforce.com (NYSE:CRM), Horizon Therapeutics (NASDAQ:HZNP), and Vipshop (NYSE:VIPS) at their current price levels. Read on for an explanation.Higher-than-expected inflation and rising Treasury yields have caused the U.S. stock market to slump in recent days. The Dow Jones Industrial Average (DJIA) declined by 800 basis points over the past five days, while the Nasdaq Composite declined by 2.8% over this period. However, macroeconomic factors suggest a quick recovery by the market.
Among other factors, the country’s GDP is expected to grow even more robustly in the second quarter than the first (6%) and consumer spending is expected to continue rising with improving employment levels.
Therefore, we think the recent price dip in the stocks of Salesforce.com, Inc. (CRM), Horizon Therapeutics Public Limited Company (HZNP), and Vipshop Holdings Ltd. (VIPS) provide attractive entry points because these stocks are well positioned to capitalize on their respective industry tailwinds.