BMY - 3 Value Stocks to Buy if the Stock Market Implodes
The U.S. stock markets took a sizable step backwards yesterday, presumably on the emerging COVID-19 threat. A more careful look, however, suggests that the market was basically due for a correction. After all, most major indices were bumping up against their all-time highs, and valuations across the large-cap space were close to twice the historical average prior to this viral outbreak. So while the COVID-19 illness may have sparked this sell-off, it was arguably long overdue from a fundamental standpoint. In fact, Warren Buffett warned the retail crowd about this very issue via Berkshire Hathaway's 2019 annual letter to shareholders.
Despite these unfavorable market dynamics, there are a few rare gems still worth buying. Who are these unicorns? The pharmaceutical companies AbbVie (NYSE: ABBV), Bausch Health Companies Inc. (NYSE: BHC), and Bristol-Myers Squibb (NYSE: BMY) are all trading at less than 10 times next year's projected earnings right now. Here's why risk-averse investors might want to pounce on these three value stocks in the days and weeks ahead.
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