A solid third-quarter earnings season could offset investors’ concerns over inflation and other lingering issues in the near term, leading to a Q4 rally. So, it could be wise to add fundamentally sound stocks Micron Technology (NASDAQ:MU), Foot Locker (NYSE:FL), Nu Skin (NUS), and MRC Global (NYSE:MRC) to your portfolio now. Wall Street analysts expect these stocks to rally more than 35% in the near term.The major stock market indexes have experienced steep losses lately owing to investors’ rotating away from technology stocks amid rising bond yields. In addition, the ongoing supply chain disruptions and the rising oil prices are stretching the inflationary environment even further. Moreover, Treasury Secretary Janet Yellen told CNBC that she believes the economy would fall into a recession if the U.S. government fails to address the borrowing limit before an unprecedented default on the debt.
However, promising data for Merck & Co., Inc.’s (MRK) oral COVID-19 treatment has provided some support to the market in addition to expectations of another strong earnings season. In August, Federal Reserve Chairman Jerome Powell indicated that “rate hikes aren’t imminent,” Moreover, according to a Factset report, more S&P 500 companies have issued positive EPS guidance for the third quarter.
So, it could be wise to scoop up shares of Micron Technology, Inc. (MU), Foot Locker, Inc. (FL), Nu Skin Enterprises, Inc. (NUS), and MRC Global Inc. (MRC). Wall Street analysts expect these stocks to rally more than 35% in the near term.