U.S. equities are recovering from early-session losses in Wednesday’s midday trading as the bulls do everything in their power to push the Dow Jones Industrial Average back up and over its 50-day moving average — maintaining the tight two-month consolidation range centered on the Dow 20,650 level. Stocks to buy with any conviction are a rarity.
Popular large-cap stocks are largely treading water. Investors are worried about high valuations and a murky policy outlook out of Washington, but they’re not fearful enough to actually take cash off the table.
Moreover, with the Q1 earnings season about to start, everything feels like it’s in stasis.
But there are pockets of activity, if you know where to look. In fact, a number of stocks — suffering from lowered expectations and bombed-out share prices — look like interesting turnaround plays at the moment.
Here are five stocks to buy as they climb their way out of the abyss: