While shopping for stocks trading at a discount makes sense for people who subscribe to the "buy low, sell high" model of investing, it can actually be a risky strategy at times. Many businesses that are trading at cheap-looking valuations may be down for valid reasons. It's important to pay attention to what factors the market may be pricing into a company's shares.
However, with the S&P 500 Index in bear market territory, many high-quality stocks look attractive due to the increasing levels of fear about the direction of the economy. But in the wake of this year's sell-off, FedEx (NYSE: FDX) , Old Dominion Freight Lines (NASDAQ: ODFL) , and Lowe's (NYSE: LOW) look like great discounted options for long-term dividend investors.
Down nearly 40% year to date and off by more than 20% in the last month alone, shipping juggernaut FedEx has been under increased pressure since it delivered its fiscal 2023 first-quarter report.
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Down by 24% to 38%, These 3 S&P 500 Stocks Offer Discounted Passive Income Potential