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These 4 Great Stocks Bounced Back From Monday's Panic Today (and They Still Look Affordable)

By Anders Bylund - Mar 10, 2020 at 4:42PM

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Market panics like the one we saw yesterday often set the stage for dramatic rebounds.

What happened

Many stocks bounced back from Monday's coronavirus panic today. I'm talking about well-respected, high-quality businesses that probably didn't deserve to crash this week in the first place. Here's a handful of interesting examples:

Company

Industry

Monday's Plunge

Tuesday's Bounce

Total 2-Day Return (Decline)

NCR (NCR -2.35%)

Barcode scanners, ATMs, kiosks

(16%)

13%

(5%)

MercadoLibre (MELI 3.62%)

Latin American e-commerce

(12%)

11%

(3%)

Sea Limited  (SE 3.29%)

Online services in Singapore

(9%)

10%

0.7%

Silicon Laboratories (SLAB -8.44%)

Embedded semiconductors

(9%)

10%

1.4%

Data source: YCharts.

So what

None of these companies had any news to share on Tuesday. They were also all pulled down by Monday's COVID-19 coronavirus panic despite a lack of negative news for each specific company. The sole exception here would be MercadoLibre, whose investors were quick to hit the sell button as the virus made its way into several new countries in Latin America.

All things considered, Tuesday's poorly supported bounce largely made up for Monday's equally overdone sell-off.

Cartoon-style drawing of a hand pushing down on a compressed spring coil.

Image source: Getty Images.

Now what

You know the old adage about buying when there's blood in the streets? That would be right now. The coronavirus has driven the S&P 500 market barometer 15% lower in less than three weeks, and patient investors are licking their chops at the sight of these discounts.

You may have missed the deepest discounts on the stocks mentioned above, but all of them have trended generally lower in the COVID-19 era. At the very least, they look like solid ideas for further research. I'm particularly interested in the deep value you can find in NCR and Silicon Labs. And if these high-quality stock still look expensive, keep an eye out for further virus-related market panics. I wouldn't be surprised if we got a second chance to lock in some great deals on these fantastic stocks.

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Stocks Mentioned

Silicon Laboratories Inc. Stock Quote
Silicon Laboratories Inc.
SLAB
$128.39 (-8.44%) $-11.83
Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
MELI
$659.95 (3.62%) $23.08
NCR Corporation Stock Quote
NCR Corporation
NCR
$30.38 (-2.35%) $0.73
Sea Limited Stock Quote
Sea Limited
SE
$69.06 (3.29%) $2.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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