When most people think of investing in stocks, all too often, the risk of outsized volatility comes to mind. And for better or worse, that volatility — and any given stock’s near-term direction — can be amplified depending on whether we’re in a bull or bear market.
But some businesses are much less susceptible to the whims of broader market conditions. So, we asked three Motley Fool investors to each pick a stock that thrives in both bull and bear markets. Read on to learn why they like these stocks.
Hot Undervalued Stocks To Watch Right Now: Roku, Inc.(ROKU)
Shares of Roku had surged over 7% through morning trading on Monday in a sign that investors might be expecting massive results from the streaming video platform. However, before today’s climb, Roku stock had plummeted nearly 28% over the last 12 weeks. The newly public company is expected to report quarterly revenues of $128.41 million after market close on Wednesday.
However, Roku, like many other young tech companies, is projected to post an adjusted quarterly loss for at least the next couple of years. In the first quarter, Roku is expected to report an adjusted quarterly loss of $0.16 per share. Still, Roku is currently a Zacks Rank #3 (Hold) that rocks an Earnings ESP of 14.56%, with its Most Accurate Estimate coming in 2 cents better than our current consensus estimate. This, of course, means that Roku is poised to top quarterly earnings estimates, and might be a stock to consider buying.
Hot Undervalued Stocks To Watch Right Now: Rite Aid Corporation(RAD)
Rite Aid Corp. (NYSE: RAD) is a national drugstore chain known for providing both over-the-counter medicine and prescription pharmaceuticals.
Shares of the company have dropped over 60% in the last year due to bearish sentiment about the company’s odds of holding on to its market share in the face of increasing competition from CVS Health Corp. (NYSE: CVS) and Wal-Mart Stores Inc. (NYSE: WMT).
However, Wall Street leaving Rite Aid out in the cold allows us to pick up the company at bargain prices.
Last month, Rite Aid received federal approval to move forward with a proposed merger with Albertsons Cos. LLC, a privately owned American grocery conglomerate.
Albertsons is currently the second-largest supermarket chain in North America, controlling 1,075 stores under various brands across the United States.
Merging with Albertsons will give Rite Aid access to a far larger system of distribution and resource allocation than the company has had access to previously – a move that is likely to bolster its bottom line once the merger is complete.
In fact, analysts believe Rite Aid’s market price is likely to spike to $2.50 after the merger is complete – a gain of over 50%.
Hot Undervalued Stocks To Watch Right Now: Vuzix Corporation(VUZI)
Never heard of Vuzix Corporation (NASDAQ:VUZI)? You’re not alone. This U.S.-based hardware company is a meager $140 million market cap and is thinly traded at just 160,000 shares per day.
However, with a primary focus on augmented reality, it could be the breakout tech pick your portfolio is looking for.
Some experts estimate augmented-reality tech will outpace virtual reality in terms of commercial units sold, with the potential market of 20 million commercial AR headsets in the market by 2021. Vuzix is tailor-made to ride this trend with its M300 smart glasses available globally and well-received by many early adopters in the tech space.
There will always be detractors who mock augmented reality after the early struggles of Alphabet and its Google Glass device. And others will say that a money-losing gadget company of this size is a long-shot that isn’t right for the typical investor portfolio.
I’ll admit that VUZI is an aggressive play. But if you adhere to the buy-below price and keep a long-term perspective, then it is highly likely that this tech will not only see widespread adoption but that a bigger player like Google or Facebook will snatch up Vuzi at the first glimmers of momentum to consolidate their grip on the emerging virtual-reality and augmented-reality space.
With shares comfortably under $10, that makes a tripler very possible here. Just watch the buy-below price on this particularly fast-moving stock.
Hot Undervalued Stocks To Watch Right Now: Edgewater Technology, Inc.(EDGW)
Edgewater Technology Inc. (NASDAQ:EDGW) had a good run during the dotcom bubble.
It was a leading strategic consulting group that engaged in helping businesses integrate technology solutions into their corporate processes. As the digital age began, this was an industry with huge potential because there was enormous need.
Nowadays, not so much.
And that’s reflected in its stock price. The stock is off 56% since its IPO in 1996. The S&P 500 is up almost 280% over the same timeframe. In the past year, EDGW is off 25%.
It’s going to be a tough road back from here.