Global market indexes fell sharply late last week as news of a new COVID-19 variant with multiple strains became known. However, we believe the dip offers an opportunity to buy quality value stocks, including Takeda Pharmaceutical (TAK), Dow (DOW), Albertsons (ACI), Lufax (LU), and Univar (NYSE:UNVR), which have solid growth prospects. So, let’s examine these names.Last week, markets worldwide closed on a pessimistic note on news reports of a new COVID-19 variant with multiple strains. According to reports, the variant, called B.1.1.529, was first detected in South Africa. The World Health Organization (WHO) has designated the variant, called omicron, as a variant of concern (VOC).
Following Black Friday’s big sell-off, the U.S. stock market indexes bounced back yesterday after President Joe Biden said that economic lockdowns in response to the COVID-19 omicron variant are currently off the table. However, stock futures today have plunged because Moderna , Inc. (NASDAQ:MRNA) CEO said he expects existing vaccines to be less effective against the new variant.
Amid this market dip, we think it could be wise to take advantage of quality stocks that are trading at a discount to their peers. Takeda Pharmaceutical Company Limited (NYSE:TAK), Dow Inc. (DOW), Albertsons Companies, Inc. (ACI), Lufax Holding Ltd (LU), and Univar Solutions Inc. (UNVR) are five stocks that are trading at a reasonable valuation and have immense growth potential. So, we think it could be wise to bet on these stocks now.