Daily Traders Edge

These 3 Stocks Could See A Massive Bounce Back In Q4

October 07
09:30 2021

The three major stock market indexes witnessed a broad rally during Tuesday’s regular session. Investor optimism surrounding the better-than-expected manufacturing reading and strong business sentiment as COVID-19 cases continue to decline might have triggered the rebound after a downtrend in September. Although the market could continue to be volatile in October amid worries surrounding the Fed’s potential tapering of its bond-buying program in the near term, analysts expect the concluding quarter of the year to be favorable for stocks.

CFRA chief investment strategist Sam Stovall believes that while October had previously witnessed higher volatility as compared to the averages of the other 11 months, this year, the fourth quarter is likely to record a “higher-than-average return.” Moreover, the upcoming earnings season could be a positive catalyst for the stock market, with expected earnings growth and surprises boosting investor sentiment.

Amid this environment, fundamentally strong stocks Smith & Nephew plc (SNN – Get Rating), DaVita Inc. (DVA – Get Rating), and Orthofix Medical Inc. (OFIX – Get Rating), which have dipped over the past month, are well-positioned to regain their momentum soon. So, these stocks could be solid bets now.

Smith & Nephew plc (SNN – Get Rating)

Headquartered in Watford, United Kingdom, SNN is a medical technology company that develops, manufactures, markets, and sells medical devices and services. The company’s global franchise areas include Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. It also operates Arthroscopic Enabling Technologies (AET), Trauma & Extremities, and other surgical businesses.

Last month, SNN launched two significant new technologies to its total knee arthroplasty (TKA) portfolio – the JOURNEY II Medial Dished (MD) for TKA and SYNC Performance Instruments. These new additions will allow orthopedics to achieve the desired knee kinematics in cruciate sacrificing and cruciate-retaining total knee replacement procedures.

SNN’s revenue increased 27.7% year-over-year to $2.6 billion in the second quarter ended July 3, 2021. The company’s gross profit grew 31.6% from the year-ago value to $1.84 billion. Its trading profit rose 166.9% from the prior year’s quarter to $459 million. Also, the company’s operating profit came in at $239 million, compared to an operating loss of $5 million in the second quarter of 2020.

Continue Reading at StockNews.com

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