Impressive third-quarter corporate earnings, declining jobless claims, and the potential for President Biden’s proposed Infrastructure bill to become law has pushed the stock market averages to record highs this week. However, since investors’ concerns over supply chain disruptions and high inflation could lead to a market correction in the near term—dragging several high-priced stocks down—we think it could be wise to bet on low-priced stocks Mitsubishi UFJ Financial (NYSE:MUFG), Petróleo Brasileiro (PBR), UBS Group (UBS), and Summer Infant (SUMR), which each possess fundamental strength.Impressive third-quarter corporate earnings, declining jobless claims, and the potential passage of a jumbo infrastructure spending bill in the near term have fostered an uptrend in the stock market of late. Consequently, several stocks are trading at high price levels now.
However, investors’ concerns over the continuing spread of COVID-19, supply chain disruptions, and rising inflation could lead to a market correction in the near term in which many high-priced stocks may lose value.
Therefore, we think fundamentally-sound stocks Mitsubishi UFJ Financial Group, Inc. (MUFG), Petróleo Brasileiro S.A. (PBR), UBS Group AG (SIX:UBSG) (UBS), and Summer Infant, Inc. (SUMR), which are each currently trading at less than $20, could be solid bets now.