2 Beaten-Down Stocks to Buy Right Now
Despite climbing by about 12.7% last month, the S&P 500 is still down by 12% year to date. And with the COVID-19 pandemic still wreaking havoc, it is far from obvious that the worst is behind us.
With earnings season in full gear, we are now starting to see the effects of the outbreak on the financial results of corporations. Among the many companies that expect the public health crisis to hurt their financial results are Merck (NYSE: MRK) and Medtronic (NYSE: MDT). Year to date, shares of Merck have slid by 15.3%, while Medtronic's stock is down by 14.7% over the same period, which means both companies have performed even worse than the broader market. Even with this backdrop in mind, though, I believe both of these healthcare stocks are worth buying. Here's why.
Merck released its first quarter financial results on April 28, and the company's performance during the quarter was strong. Merck recorded sales of $12.1 billion during the first quarter -- representing an 11% year over year increase -- and the company's GAAP net income increased by 10% to $3.2 billion.
Source Fool.com
