These 4 Stocks Are Battling the Bear Market Head On
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“The U.S. bear market has deepened,” says The IHT.
Even helicopter Ben is worried. He’s told Congress that inflation risks have “intensified” and that there’s now a threat of “significant downside” to growth.
But contrarian investors should be lapping it up, says Marc Lichtenfeld in The Smart Profits Report. A bear market is where bargains are made.
Marc has put together a list of stocks that performed well in during the last bear… and four stocks that are currently battling the bear head on…
Rewind: The Best Bear Market Bets From 2000-2002
When you’re faced with a challenging market, one option is to look for the stocks that historically perform well during downturns. You’ll often find that the companies that not only weather the storm, but thrive during it, are the ones that lead the pack once the market stabilize and heads higher again.
Here are some examples of stocks that held up well during the last bear market, which growled from March 2000 to October 2002. During that time, the S&P 500 lost a whopping 50.4%.
Ventas (NYSE: VTR): Check out these results. While most other stocks were in freefall, Ventas gained a sensational 578% and then went on to post additional gains of 356% at the stock’s high.
THQ Inc (Nasdaq: THQI): Investors who held on to THQI during the last bear were rewarded with a return of 68%. But that pales in comparison to the 178% gains at the stock’s high afterward.
Manor Care: Shares jumped 36% during the last bear market. However, by the time the Carlyle Group bought the company in 2007, its shares had rocketed another 255% since the end of the bear market.
But I imagine you want the best stocks to invest in during a bear market today. Below are a few stocks to look into. They are all trading well during what has been a treacherous market. That should be some indication that their prospects are especially bright.
Fast Forward: The Best Bear Market Bets Today
From solar power, to biotech, to healthcare and hospice services, these four companies are currently battling the bear head-on… and winning.
Canadian Solar (Nasdaq: CSIQ): Shares of this Ontario-based manufacturer of solar modules have skyrocketed over the past year. Although currently 25% off its high, the stock is still well-placed to profit from high oil prices, and with the company having recently raised its revenue outlook, there’s no reason to think that solar stocks will quit any time soon.
Note: Solar power is still a young, up-and-coming industry in stock market terms. Our newly added technology expert Paul Moore is cautious on the sector and I’m sure he’ll have more to say about solar in coming months.
Moving to the healthcare area, several names have recently hit 52-week highs…
Allos Therapeutics (Nasdaq: ALTH): Shares of this biotech company have recovered nicely since the firm’s brain cancer drug failed Phase III trials last summer. At the moment, its leading candidate, PDX, is in Phase II trials for T-cell lymphoma. The company raised over $65 million this spring, so it should have enough cash to fund its research in the near-term at least. Allos is not expected to generate any revenue this year, though.
Amedisys (Nasdaq: AMED): This profitable provider of home health and hospice services is projected to earn $2.73 per share this year and $3.32 next year. However, not everyone is bullish on AMED. Over 26% of the float is sold short. So either the bears know something, or there could be a big short squeeze coming if the stock continues to rise. Note: The company’s earnings report is scheduled for July 29, which should provide more clues.
Sequenom (Nasdaq: SQNM): This genetic and molecular diagnostics company has seen its shares quadruple since April. But the stock really started cooking in June when the company announced very strong results in tests to determine Down Syndrome in fetuses using the mother’s blood. The Down Syndrome testing market is at least $1 billion and if Sequenom’s tests are proven superior, the company could be in the position to grab much of that revenue.
Source: The Best Stocks to Invest in During a Bear Market
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