Even though the fears surrounding the COVID-19 omicron variant are expected to keep the stock market under pressure, experts believe S&P 500 stocks will rebound soon. Therefore, we think it could be wise to bet on quality S&P 500 stocks Vertex Pharmaceuticals (NASDAQ:VRTX), Agilent Technologies (NYSE:A), HP (HPQ), and McKesson (MCK). They are each currently trading below their 52-week highs but are rated Strong Buy or Buy in our proprietary POWR Ratings system. Let’s discuss.The S&P 500 index has suffered extreme volatility amid the resurgence of COVID-19 cases and the emergence of the omicron variant. On December 1, the United States identified its first known COVID-19 case caused by the omicron variant. This has raised investor fears about the economic recovery. But according to JPMorgan (NYSE:JPM) analysts, the rise in the S&P 500 will not be hampered because of the omicron variant despite the recent stock market pullback.
In addition, a positive analysis by a team of strategists at Goldman Sachs (NYSE:GS) claims that "Omicron is slightly more transmissible but causes much less severe disease," as reported from the initial case findings in South Africa. Most experts seem to be convinced by this analysis for now.
Therefore, we think it could be wise to bet on fundamentally sound S&P 500 stocks Vertex Pharmaceuticals Incorporated (VRTX), Agilent Technologies, Inc. (A), HP Inc. (NYSE:HPQ), and McKesson Corporation (NYSE:MCK). These stocks are currently trading below their 52-week highs but have Strong Buy or Buy rating in our proprietary POWR Ratings system.