7 Bargain Stocks to Buy After the Brutal Selloff

  • As markets appear to be bottoming out, these bargain stocks hold the promise of long-term growth.
  • Berkshire Hathaway (BRK-ABRK-B): Its diversified portfolio makes it an all-weather portfolio.
  • P&G (PG): Consumer goods are a safe bet and PG stock won't stay depressed for long because of it.
  • Rolls-Royce Holdings PLC (RYCEY): Rolls-Royce is a savvy play on the civil aerospace segment.
  • Tilray Brands (TLRY): Despite tough conditions in Canada, it has remained one of Canada's few profitable cannabis enterprises.
  • United Rentals (URI): One of the most successful companies in its industry URI is ready to bounce.
  • Snowflake (SNOW): This data warehousing services company occupied a growing sector that investors can't afford to ignore.
  • D.R. Horton (DHI): With demand outpacing supply and interest rates not rising enough to drive buyers away D.R. Horton looks good here.
bargain stocks - 7 Bargain Stocks to Buy After the Brutal Selloff

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Bargain stocks are a little easier to find after this recent selloff. The negative effects of global inflationary pressures were made more noticeable by food and energy prices and supply chain disruptions. The stock exchange has been affected greatly.

If there’s an upside, it’s that we’re likely nearing the end of this downturn. That means there’s a small window to get bargain stocks before they return to previous levels and continue climbing.

It stands to reason that the quality companies always will make a comeback. Some of these companies were most popular in the market for nearly two years before their recent declines.

Therefore, if you have the capital to invest, here are seven options you need to keep in mind.

BRK-B Berkshire Hathaway $291.71
PG Proctor and Gamble $141.95
RYCEY Rolls-Royce Holdings PLC $1.12
TLRY Tilray Brands $3.38
URI United Rentals $280.22
SNOW Snowflake $122.42
DHI D.R. Horton $70.39

Berkshire Hathaway (BRK-B)

A Berkshire Hathaway (BRK.A, BRK.B) sign sits out front of an office in Lafayette, Indiana.
Source: Jonathan Weiss / Shutterstock.com

Berkshire Hathaway (NYSE:BRK-B) is a multinational holding company with business interests in numerous industries.

Berkshire Hathaway has a diversified portfolio of businesses that operate primarily in the insurance and financial services sectors. They are also involved in manufacturing, retailing, wholesaling, railroads, and utilities.

The company is a financial giant with offices and investments all over the globe. Markets are constantly changing how they view investment managers, but BRK currently has a unique reputation as a top performer for the wider economy. Having a brand name like Warren Buffet at the helm certainly helps.

In 2021, Berkshire Hathaway recorded a growth of $85 billion in assets – $958.8 billion in total that year.

However, despite an outstanding record, the stock has not been spared from the wider market selloff. That should not hold you back, though. It’s ideal for snapping up this stock at a steep discount.

Procter & Gamble (PG)

A Procter & Gamble (PG) distribution center in Vandalia.
Source: Jonathan Weiss / Shutterstock.com

P&G (NYSE:PG) is the world’s leading consumer products company. It creates a diverse range of high-quality, trusted brands, including Pampers, Tide and Crest.

Procter & Gamble has over 300 brands sold in more than 160 countries around the world. Due to the company’s broad portfolio, it can do well in most economic cycles.

The company’s first-quarter earnings were another example of it hitting the numbers. P&G beats Wall Street’s estimates for its fiscal year earnings and revenue.

Fiscal first-quarter net income came in at $4.11 billion, and net sales rose 5% to $20.34 billion, handily above expectations. It was yet another example of the company hitting the ball out of the park.

Rolls-Royce Holdings PLC (RYCEY)

Rolls Royce (RYCEY) logo on the side of an Airbus A330.
Source: Matheus Obst / Shutterstock.com

British manufacturer of luxury cars, aircraft engines, and other engineering products Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) is one of the most well-known brands in the world.

Rolls-Royce has been around for more than a century and has been recognized as an icon in the automotive industry. This kind of longevity alone could put RYCEY on any list of bargain stocks.

Rolls-Royce Motor Cars is now a division of BMW(OTCMKTS:BMW). Rolls-Royce Holdings produces power systems used in aviation and other industries.

As the pandemic-induced issues wane, the civil aerospace segment has returned to importance. Electric planes and small modular nuclear reactors will be major contributors to business growth in the future.

The company’s history of excellence in design is why you should be excited to see what they come up with next.

Tilray Brands (TLRY)

Tilray (TLRY) logo on a web browser.
Source: Jarretera / Shutterstock.com

Tilray Brands (NASDAQ:TLRY) is currently the second-largest producer of medical marijuana in North America and the largest legal medical cannabis supplier to patients in Canada.

There has not been much action regarding federal legalization in the U.S. this year, so cannabis stocks are under severe pressure.

However, Tilray deserves credit for being proactive during this time. Last year, Tilray and Aphria completed their merger to become the largest marijuana company in the world. The combination has allowed TLRY to take advantage of weakness in the market and make investments.

Tilray decided to invest heavily in Hexo’s (NASDAQ:HEXO) debt. The transaction terms give Tilray the option to potentially gain equity in the company, a very smart move.

Cannabis eventually will be legalized across the UI.S. making TLRY one of the longer-term bargain stocks to buy. 

United Rentals (URI)

A magnifying glass zooms in on the website for United Rentals (URI).
Source: Casimiro PT / Shutterstock.com

United Rentals (NYSE:URI) provides rental solutions for construction, industrial, commercial and residential customers.

With its global network of over 1,100 branch locations in 49 states and 10 Canadian provinces, United Rentals has a huge reach.

United Rentals also offers a wide range of services like fleet management, asset tracking and fleet tracking software which you can use on their website or mobile app.

URI will continue to do well and build on its robust financials in this environment. The company recently recorded first-quarter fiscal results, with total revenue and net income rising by more than double digits.

The company also upped its guidance when issuing its results, suggesting more growth is on the way.

Snowflake (SNOW)

Snowflake symbol and logo at the company corporate headquarters in Silicon Valley. SNOW stock.
Source: Sundry Photography / Shutterstock

Snowflake (NYSE:SNOW) is a cloud computing-based data warehousing company that provides enterprises with data analytics and business intelligence solutions.

During the pandemic, people migrated to the cloud in record numbers. Companies like Snowflake benefited from this migration and thrived as a result.

Snowflake’s sales were up in 2021, soaring 124% and rising again to $1.22 billion in the fiscal year has shown remarkable growth and is among the fastest-growing companies in the cloud space. However, at the same time, Snowflake has retained its consumer base through its quality services.

Snowflake has had a net retention rate of 170% or more each quarter over the last three quarters. Even though conditions have started to slow down, Snowflake had a successful IPO in 2020 and posted a 70% adjusted gross margin, making it one of the smart bargain stocks to buy.

D.R. Horton (DHI)

In this photo illustration the D.R. Horton (DRI) logo seen displayed on a smartphone.
Source: Casimiro PT / Shutterstock.com

D.R. Horton (NYSE:DHI) is one of the largest home builders in North America. Known for its quality homes at affordable prices, it also has a reputation for being one of the best companies to work for as far as benefits are concerned.

D.R. Horton is the country’s biggest homebuilder by volume and has been since 2002. Since then, they’ve made big promises to customers, especially those in underserved markets, and it has delivered.

While demand for homes has gone up and prices remain high, there is a shortage of available houses, resulting in high demand. The increase in interest rates, while a pertinent issue, is not having a huge impact on demand. Therefore, D.R. Horton will continue to do well.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/7-bargain-stocks-to-buy-after-the-brutal-selloff/.

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