Where Growth Meets Value: 3 Stocks to Buy Amidst the Selloff

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stocks to buy - Where Growth Meets Value: 3 Stocks to Buy Amidst the Selloff

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When it comes to a well-priced sell-off, uncertainty aside, today’s blood on the streets is also where growth is welcoming a meet and greet with value. In the following let’s take a look at three stocks to buy offering strong reasons off and on the price chart for spots in your portfolio.

Wall Street enjoyed a collective sigh of relief Tuesday following the largest single day sell-off in more than 30 years to start the week. Amid an ever-growing COVID-19 outbreak the broader averages led by the NASDAQ 100’s 7.50% gain reclaimed a small bit of the bear market’s near 30% cratering. And for investors demanding headline comfort and confirmation and more than just a dead cat bounce, they got it.

Tuesday’s rally enjoyed the backing of an additional $850 billion in federal stimulus to battle the economic impact of the coronavirus. The injection follows this past weekend’s second rate cut which took interest rates down to the range of 0.00% to 0.25% and $700 billion in quantitative easing.

Sadly, what investors are learning once again in Wednesday’s early going, well-deserved bounces backed by the powers of the US government don’t necessarily result in a meaningful bottom for the market. What’s really required before investors jump in with both feet is a technical-based follow-through day (FTD).

A follow-through day event typically occurs four to seven sessions after an intermediate market low is established. During more volatile market environments like today, a FTD rally in excess of 2% and likely upwards of 3% is understandably necessary.

The rules of the follow-through day aren’t cast in stone, but they’re not rocket science either. By literally and simply counting those days off a low, investors decrease the chances of buying a dead cat bounce which ultimately fails. And realize this, no major market bottom has ever occurred in the history of the stock market without a follow-through day.

During this process investors should also be monitoring the market for technical leadership from newer companies which can become tomorrow’s standouts. Zoom Video (NASDAQ:ZM) and a name I’ve discussed at InvestorPlace in recent days is demonstrating those qualities. Of course, it doesn’t hurt if burly market influencers such as Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) are demonstrating bullish authority as well.

Now with three to four confirmed and failed dead cat bounces during 2020’s correction-turned-bear market, my advice is to keep your chin up, but err on the side of safety with your portfolio until a FTD signals the coast is clear. And while you’re smartly counting those days, here are three companies intersecting growth with value and worth consideration as stocks to buy when, not if, the next follow-through day emerges.

Stocks to Buy: Roku (ROKU)


Source: Charts by TradingView

Roku (NASDAQ:ROKU) needs no introduction to growth stock investors. And given the emphasis on nesting at home right during the coronavirus, the over-the-top streaming content platform which offers channels from Netflix (NASDAQ:NFLX) to Disney (NYSE:DIS) and everyone in-between, has an even larger audience to capture. But that’s not all ROKU stock has going for it.

With the baby thrown out with the bathwater in today’s bear market, Roku is a solid stock to buy as growth collides with value on the price chart. Technically, shares are trying to establish a weekly hammer bottom.

Coupled with Fibonacci-based extension testing and oversold stochastics, all that’s needed in the coming days is a FTD to make Roku an obvious stock to buy.

Alteryx (AYX)


Source: Charts by TradingView

Data science and analytics outfit Alteryx (NYSE:AYX) is another stock to buy.

Last month the mid-cap growth stock blew past Street views and reaffirmed an attractive-looking path to even larger future success. And while the timing of the report proved unlucky for investors snapping up a classic cup-with-handle breakout to all-time-highs, a strong opportunity to buy growth at value now exists.

Technically speaking, shares of Alteryx are forming a pattern doji ‘decision’ candle on the weekly chart. The price development appears to be part of a larger broadening pattern which has landed inside AYX stock’s lifetime 50% to 62% support zone.

With shares also challenging the lower Bollinger Band and stochastics positioning ‘close enough for government work’, the decision to make this a stock to buy is an easy one.

Amazon (AMZN)


Source: Charts by TradingView

Amazon (NASDAQ:AMZN) is the last stock that deserves a spot on your trading monitor as a stock to buy. As mentioned earlier, it’s going to be difficult for a FTD to be confirmed in the coming days without the support of the market’s largest capitalization companies. Similar to Apple or Microsoft, Amazon obviously fits the bill. But there’s more to Amazon as well.

The sprawling tech giant stands to not only survive, but also thrive during and after the coronavirus has been laid to rest. I’m not exactly alone in seeing the potential of the company’s e-commerce and cloud business as longer-term market winners. InvestorPlace’s Dana Blankenhorn has put his money where his mouth is on this one.

Technically, Amazon stock has been proving its mettle as well. While the stock isn’t immune to the broader bear market shares have demonstrated relative strength. AMZN’s corrective low of 25% compares favorably to the broader markets own declines in excess of 30%. What’s more, shares are even attempting to buck Wednesday’s overall ugly price action.

Currently, shares are trying to put together a bullish weekly candlestick after a challenge of the stock’s key longer-term uptrend line. It’s enough to be hopeful. Now all that’s required to make Amazon a stock to buy is an elusive, but guaranteed to happen, follow-through day.

Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


Article printed from InvestorPlace Media, https://investorplace.com/2020/03/where-growth-meets-value-3-stocks-to-buy-amidst-the-selloff/.

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