When the stocks are in a bull market phase, investors need to exercise caution on stocks that fall. Still, value investors are rewarded when the stock is too deeply discounted. Today, investors have two stocks on sale to consider.
Humana (HUM) broke below its $350 support price, which it held throughout August. The health plan firm is underperforming its peers. That includes United Health (UNH), Cigna (CI), and HCA Healthcare (HCA).
In the food supply market, Conagra (CAG) shares are on sale. The stock fell by 4.03% yesterday to close at $31.47. The firm is streamlining its product portfolio. On August 28, 2024, the firm closed on its divestiture of a 51.8% stake in Agro Tech Foods. Conagra is executing a strategy to reshape its portfolio. As a result, it will maximize shareholder value.
In 2025, Conagra expects adjusted earnings of $2.60 to $2.65 a share.
In the banking sector, Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), Morgan Stanley (MS), and JPMorgan Chase (JPM) are trading below their highs.
Markets are disappointed that inflation rates did not fall by more. Banks would thrive more if the Federal Reserve cut rates by 50 bps. Assuming a 25 bps cut, bank stocks are trading lower. This creates a better entry price for long-term investors.