As surging inflation and supply chain disruptions raise concerns over the possibility of a big equity market correction in the near-term, many highly-priced stocks may witness a pullback. Therefore, we think it could be wise to bet on fundamentally sound value stocks HCA Healthcare (NYSE:HCA), Laboratory Corporation of America (NYSE:LH), KeyCorp (NYSE:KEY), and International Paper (IP). Read on.Although impressive third-quarter corporate earnings, declining jobless claims, and rising consumer spending pushed benchmark indexes to record highs last month, historically-high inflation, the Federal Reserve’s decision to start tapering its bond-buying soon, and ongoing supply chain disruptions have been fostering volatility in the markets of late.
Because highly-priced stocks could suffer a pullback in an anticipated market correction in the near term, value stocks have of late been gaining investors’ good graces. This is evidenced by the iShares Morningstar Value ETF’s (ILCV) 3% returns over the past month.
Therefore, we think it could be rewarding to bet on undervalued stocks HCA Healthcare, Inc. (HCA), Laboratory Corporation of America Holdings (LH), KeyCorp (KEY), and International Paper Company (NYSE:IP).