Wells Fargo said the recent market turmoil has resulted in some bargains for momentum stocks. Major stock indexes attempted a comeback on Monday amid a vicious sell-off in global equities on worries about the U.S. economy and the unwinding of yen carry trades. Dip buyers stepped in Thursday, pushing the S&P 500 to its best trading day since November 2022 However, Wells Fargo analyst Christopher Harvey remained cautious on the broader market. He advised investors to “buy stocks, not the stock market.” Personal brands — including ambitious meta platforms — that became cheaper amid the market slump may be primed to buy. “It’s difficult for us to immediately knock the table and recommend buying the dip, as this week’s events, traditional pre-Fed price action, and lack of catalysts make us cautious,” Harvey wrote on Friday. “However, we see options Opportunities. For example, we believe the 9% pullback in the overweight-rated Communications Services sector is an attractive entry point.” Given the recent market volatility, here’s a detailed look at the stocks Wells Fargo is watching. Nvidia’s stock price is up an impressive 110% in 2024. Harvey isn’t the only one who thinks falling Nvidia shares could present a buying opportunity for investors. Jefferies analyst Blayne Curtis said concerns about AI chip delays have not changed the company’s view on Nvidia. “Our understanding is that issues like this are common and the only difference is the degree of scrutiny placed on each step of the supply chain,” he wrote. NVDA shares are up Nvidia stock so far this year. Nvidia will announce its second-quarter results at the end of August. Harvey also named Meta as a potential buy-on-the-dip candidate. Shares of Facebook’s parent company were up about 45% in 2024, but have fallen 3% in the past month. The social media company’s second-quarter revenue and profit beat Wall Street forecasts, driven by growth in advertising revenue. Meta also forecast third-quarter revenue between $38.5 billion and $41 billion, while analysts polled by LSEG expected $39.1 billion. META Mountain Meta platform stock year-to-date. Eli Lilly’s shares have risen 53% in 2024, but have fallen about 8% in the past month. Eli Lilly and Company, the maker of weight loss and diabetes drugs Zepbound and Mounjaro, beat analysts’ expectations for its second-quarter results and raised its full-year revenue forecast. Other stocks on the list include streaming giant Netflix and ride-sharing provider Uber.
