Although the stock market continues to witness volatility as investors remain spooked by rising uncertainties such as increasing Treasury yields and inflationary pressure, a relatively positive outlook for the fourth quarter could calm their anxiety. As investors seek to reshuffle their holdings to beat any near-term stock market pullback, we believe stocks such as China Petroleum (NYSE:SNP) & Chemical Corporation (SNP), AutoNation Inc. (NYSE:AN), and Vista Outdoor (NYSE:VSTO) could be great picks now as they look highly undervalued at their current price levels.The major stock indices have dipped lately, triggered by concerns over rising Treasury yields, high inflation, and the central bank’s potential tightening of monetary policy in the near term. The 10-year Treasury yield was hovering around 1.48% on October 4 after hitting 1.56% last week, the highest point since June.
However, Mark Haefele, the chief investment officer of global wealth management at UBS, believes that worries are “likely to fade soon,” and the market should soon get back on track. Moreover, strategists expect stocks to eclipse their recent highs after a rocky month as the market enters a “normally positive period.”
China Petroleum & Chemical Corporation (SNP), AutoNation Inc. (AN), and Vista Outdoor Inc . (VSTO) look undervalued at their current price levels. They are fundamentally well-positioned to deliver significant upside in the near term. So, it could be wise to bet on them right now.