Citi's Recommended Stocks After Market Decline
- Citi advises investors to look for resilient stocks following a recent market drop.
- The guidance aims to help navigate the current economic uncertainties.
- Stocks that can endure financial challenges are highlighted as a prudent choice.
Published on August 7, 2024, major U.S. stock indices faced significant pressure following disappointing economic data, raising fears of an impending recession. The Dow Jones Industrial Average and S&P 500 experienced their largest single-day losses in nearly two years, exacerbated by the unwinding of the Japanese yen carry trade. In light of this market turmoil, Citi has advised investors to seek out stocks that demonstrate resilience and are now more attractively priced. Citi has released a "post-pullback shopping list" featuring stocks that meet specific criteria, including being among the top 500 of the Russell 1000 by market capitalization, showing improved growth outlooks, and having stable earnings forecasts for 2024 and 2025. Notably, all stocks on the list are rated as buys. Among the highlighted companies is Apple, which has seen a year-to-date increase of over 10%, despite a recent decline of more than 6% in the past month due to broader tech sector pressures and a significant reduction in Berkshire Hathaway's stake in the company. Apple's stock received a boost after reporting stronger-than-expected second-quarter results, rising 3% on Tuesday. However, analysts remain cautious, with a consensus rating of "hold" and limited upside projected. Home Depot also made Citi's list, alongside other companies like Devon Energy and Zscaler, as investors look for opportunities in a challenging economic landscape.