Surging COVID-19 cases and rising inflation are causing market volatility, making highly priced stocks susceptible to a correction in the near term. But, as a corollary to this, we think fundamentally sound and low-priced stocks Centerra Gold (CGAU), Alliance Resource (NASDAQ:ARLP), Global Cord Blood (CO), and Blueknight Energy (NASDAQ:BKEP) could be safer bets now. Let’s discuss.Impressive corporate earnings and a strengthening job market have lately driven a surge in the major benchmark indexes to new highs. However, the overall market remains highly volatile on concerns over rising inflation and the resurgence of COVID-19 cases worldwide. Many analysts expect a broader market correction in the near term.
Because a market correction will cause highly priced stocks to lose significant value, we think it could be wise to bet on stocks that are currently trading at reasonable price levels and have sufficient fundamental strength to generate gains.
Centerra Gold Inc. (CGAU), Alliance Resource Partners, L.P. (ARLP), Global Cord Blood Corporation (CO), and Blueknight Energy Partners, L.P. (BKEP) are currently trading below $10, and these stocks are well-positioned to deliver solid returns in the coming months. So, it could be wise to bet on these stocks now.