Walgreens, Nike, Moderna: Bargain hunting stocks
The most recent bull market run has been widely described as "weird," with several household stocks underperforming during the bull run on S&P 500 (^GSPC) components. Yahoo Finance Reporter Madison Mills showcases three of these companies — Moderna (MRNA), Walgreens (WBA), and Nike (NKE) — where investors may find the most value for a bargain price on the stocks.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
BRIAN SOZZI: Maddie, it's just a weird day, weird market, and I'm just mixing things up. But take it away.
MADISON MILLS: I mean, I'm honored to be compared to Jared Brian. So I appreciate it. And actually, I have some insights from him I'm going to share with you when I get to my final name. In this bucket of stocks, it was hard for me to pick some names that have underperformed particularly in the last few weeks because we have seen some broadening out.
A little bit less weirdness that you mentioned of just those seven names leading the broader S&P. Only about a dozen or so names clearly in the red over the past week. But I'm going to go through a couple of them. Starting it off with Moderna. This name getting pummeled this year. It's actually the second biggest laggard in the S&P year-to-date not being able to hold on to those gains during the COVID-19 pandemic. And how could they? How could they hold on to the growth that they got following the creation of that vaccine?
They're going to be looking to some other potential growth areas heading into 2024. The street has not necessarily rewarded them for their investment in cancer research, cancer drugs, but they are looking to get regulatory approval in the US and Europe for respiratory virus vaccine. That could be a boon for this name moving forward. And that's why we could see some potential upside to this name heading into the new year. But watching that regulatory approval is going to be the thing to look at for investors.
I also want to talk about Nike guys. This name really struggling in earnings over the course of this year. And this latest earnings report was no different for this name. That forward guidance is the thing that investors were looking for. And they did not hear what they needed to hear, particularly when you look at sales, especially in China. And this is the thing that we've been talking about so much. When are we going to see recovery in China?
Now, some of my sources, including Jay Hadfield who we recently had on our program said that the growth story in China is there because the situation is so dire. There has to be some upside. My question is whether or not that upside is going to be seen in some consumer names, like a Nike?
And sticking in the consumer space, I want to end with a name I know you love, Brian. Starting on Walgreens here, having a really tough performance this year. Today, a year ago, they were actually at their 52-week high. Not so much today.
But they have gone up over the past four trading days, hitting above that Bollinger Band, though, twice, which could indicate that there's a little bit of overbuying in this name. And that could be because of some tax loss harvesting and a name that's down so much year-to-date as investors look for ways to curb some capital gains. That's one potential explanation for some of the upside movement we're seeing here.
Also, we'll have to watch what they do with boots heading into 2024. Will we see an IPO of that name over in London as they look to figure out what to do with that partnership, having not gone through with a sale over the course of this year? So maybe seeing some growth in the Walgreens name, but we're going to have to wait and see, guys.
BRIAN SOZZI: Maddie, real quick. I just want to clear up. I get my TV makeup from my local CVS. It's just my store. Nothing against Walgreens. They just sell better makeup.
MADISON MILLS: I mean, I'm an elf fan. So whether or not, it just depends. Duane Reade, CVS Walgreens, if they have elf, I'm good.
BRIAN SOZZI: Eyes, lips, and face. All of us got those going on for us here this morning. Madison Mills also got some words for us. Appreciate it, Maddie. We'll be checking in later on in the show.
