Even though the major stock market indexes retreated yesterday due to higher-than-expected inflation data, a decline in jobless claims and favorable third-quarter corporate earnings are helping buoy investor sentiment. So, we think it could be wise to bet on quality stocks Lufax (LU), Companhia Siderúrgica Nacional (SID), and Brinker International (NYSE:EAT) that are expected to rebound after plunging more than 20% in price so far this year. Let’s discuss these names. The major stock market indexes retreated yesterday because consumer price data indicated higher-than-expected inflation. The Consumer Price Index rose 6.2% in October from a year earlier, its biggest jump in more than 30 years. However, the major stock market indexes rallied at the beginning of the week.
Among the positive factors, Pfizer Inc. (NYSE:PFE) announced on November 5 that its COVID-19 antiviral pill, when used with a widely used HIV drug, cut the risk of hospitalization or death from COVID-19 by 89% in high-risk adults who’ve been exposed to the virus. U.S. jobless claims declined to a 267,000 pandemic low. And, according to a Factset report, the S&P 500 reported the second-highest revenue growth in the third quarter since 2008. These factors have helped boost investor sentiment.
Given this backdrop, we think it could be wise to add fundamentally sound stocks Lufax Holding Ltd. (LU), Companhia Siderúrgica Nacional (SID), and Brinker International, Inc. (EAT) to one’s portfolio. They have declined by more than 20% in price year-to-date but are well-positioned to rebound in the coming months.