4 Undervalued Large-Cap Stocks to Consider Buying on Market Pullbacks

StockNews

Published Sep 23, 2021 04:53PM ET

Updated Sep 23, 2021 05:30PM ET

4 Undervalued Large-Cap Stocks to Consider Buying on Market Pullbacks

With rising COVID-19 cases threatening the economic recovery, many analysts expect the stock market to witness a correction in the near term. Though we don’t necessarily disagree, our view is that each market dip could be an opportunity to buy large-cap stocks América Móvil (AMX), HP (HPQ), LyondellBasell (LYB), and ASE Technology (ASX), which look undervalued at their current price levels. Let’s discuss.The stock market has been holding up despite the threat that rising COVID-19 cases could undermine the economic recovery. Nevertheless, many analysts expect the market to witness a correction of some stripe in the near term. For example, Miller Tabak chief market strategist Matt Maley recently stated his concerns about an impending market correction. Also, a survey of 550 global investors by the Deutsche Bank (DE:DBKGn) revealed a consensus expectation of a market pullback before year’s end.

While the Fed’s signal this week that it will continue supporting the economic recovery, for now, fueled a rally in the major benchmarks, the largest Chinese real estate company Evergrande’s potential collapse could fuel volatility in the near term. Therefore, we think it could be wise to invest in large-cap stocks, which are known for their ability to withstand market volatility and generate stable returns. Investors’ interest in large-cap stocks is evidenced by the Vanguard Large-Cap Index Fund ETF’s (VV) 33% gains over the past year.

So, the likely market pullback could be an excellent opportunity to bet on fundamentally sound large-cap stocks América Móvil, S.A.B. de C.V. (AMX), HP Inc. (NYSE:HPQ), LyondellBasell Industries N.V. (NYSE:LYB), and ASE Technology Holding Co., Ltd. (NYSE:ASX). These four names look undervalued at their current price levels.

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