Election fears are causing a bit of uncertainty in the financial markets. Stocks have been trending down. As we sit on modest daily declines in the market for the past 7 consecutive days, we once again are faced with an opportunity to focus on stocks that have a good chance to recover sympathetic losses.  You may have your eye on several companies that have reported great earnings but are being unjustly punished by the overall market sentiment. We have visited this type of “Buy on Pullback” theme in the past, and think that this particular market environment aligns with our “pullback strategy”.

For example Nova Measuring Instruments Ltd. (NASDAQ:NVMI) crushed Q3 2016 street earnings estimates and gave a rosy outlook during the middle of a new growth phase. NVMI helps semiconductor manufacturers run a more efficient ship by providing technology to help them test components. Third quarter EPS were $0.35 vs. $0.25 compared to analyst estimates of $0.25

We also think another company we used to own is about to reverse years of losses and surprise investors with sustainable sales and earnings per share growth. We just released our spotlight note on the company to highlight why we started to track it. We think it has multi-bagger potential.

We have and will be performing due diligence on these companies and many others to see if they indeed have entered into a sustainable growth period.  Feel free to stay in touch to follow our research.

Working Together

We are always on the search for stocks that we think fit the bill for a recovery in price (RIP). Feel free to add some color with comments to support your pick.  We will be sure to share the results of this crowd sourcing endeavor with you.

What stocks on your radar just reported blockbuster earnings but have failed to perform or even took a dive? Comment below and let us know.