Most investors know the market's been volatile in recent months. What's less obvious is that a handful of great stocks have underperformed during this time for all the wrong reasons, kicked around by all the back-and-forth action. Of course, veteran investors know that's when and where you often find the best bargains.

With that as the backdrop, here's a rundown of three no-brainer stocks to buy while they're down for reasons that don't quite make sense. Their weakness is not only temporary, but could also easily unwind sooner rather than later.

Kraft Heinz

The recent past has been tricky for all stocks, but it's been particularly unkind to consumer goods names. Investors have feared (and understandably so) that rampant inflation is taking a sizable toll on these companies' bottom lines. And in some cases, that's exactly how things have panned out.

In plenty of other cases, though, these organizations have rolled with the inflationary punches. The Kraft Heinz Company (KHC -0.21%) is one of these. Last quarter's organic sales were up 10.1% year over year despite price increases of 12.4%. That's because consumers are paying higher prices -- they have to eat, after all.

The company's biggest challenges are logistics headaches, and managing consumers' shifting preferences from cooking at home back to restaurant service. Even then, Kraft Heinz's management feels good about the foreseeable future. Revenue guidance for the remainder of the year was raised from a mid-single-digit increase to a high-single-digit increase.

The kicker is the dividend. Relative weakness in Kraft Heinz shares has allowed the dividend yield to inch up to 4.2%, which is among the highest within the packaged-foods industry.

The affordability of this dividend payment isn't in question either. The net payment of $0.80 per share through the first two quarters of the year only accounts for about 60% of the $1.30 per share that Kraft Heinz earned through that six-month stretch. And the full-year bottom line of $2.69 per share that analysts are modeling for the year means the rest of the year's payouts should be easily covered.


Athletic-apparel maker Nike (NKE -0.18%) is another name that's seen its stock suffer of late largely for the wrong reasons. Shares are down nearly 40% since November's high, thanks to disrupted supply chains and -- now -- brewing economic weakness. While currency-neutral sales growth of 3% during the quarter ending in May is enviable for some for-profit organizations, by Nike's historical standards, that's a bust.

But take a step back and look at the bigger picture: This is Nike. It's the leading worldwide name in athletic footwear, and one of the top names in the athletic-apparel market. It's also one of the world's best-known all-around brand names, consistently ranking among the top 20, and standing shoulder-to-shoulder with venerable brands like Walt Disney and Coca-Cola.

This sort of reach makes a huge difference in environments that aren't plagued with challenges like unbridled inflation and broken supply chains. But these challenges are only temporary. Once they ease and Nike's operation returns to its pre-pandemic norms, look for top- and bottom-line growth to follow suit.

Indeed, the company may even come back stronger than ever before. The COVID-19 pandemic has accelerated Nike's efforts to become more self-sufficient by operating more of its own stores and expanding its own online shopping presence. To this end, 40% of its revenue now comes from sales made directly to consumers rather than via wholesaling, while last quarter's online sales were up a hefty 18% on a currency-neutral basis.


Finally, add Etsy (ETSY 2.86%) to your list of no-brainer stocks to buy now.

Not unlike Nike's and a little like Kraft Heinz's, Etsy's shares haven't had a particularly great year. Despite jumping late last month following the release of second-quarter numbers that topped estimates, the stock's still down more than 60% from November's peak, and is much closer to June's new 52-week lows. In fact, all of the earnings-prompted surge has been given back, and then some.

The addition of only 6 million new buyers last quarter is a relative disappointment too; though better than expected, gross sales for the quarter in question were essentially flat year over year. While most investors understand the potential of an e-commerce website with a homemade, crafty feel that a rival like just can't replicate, Etsy has yet to demonstrate that it can consistently live up to all its previous hype.

If there was ever a time not to jump to conclusions about Etsy, though, this is it. Among the current sources of confusion are fiscal comparisons to a time when the COVID-19 pandemic was still driving a great deal of its revenue, in addition to driving new shoppers to the site.

It's also worth noting that Etsy imposed higher seller fees beginning in April, raising them from 5% to 6.5%. Many sellers revolted that month by halting their sales for a week. Others may have left the platform altogether, seeking greener pastures (and lower selling fees) at sites like Mercari or eBay. Yet ultimately, the higher sellers' fees will be invested in the platform's growth. The increase may also leave Etsy with higher-volume sellers capable of populating the platform with more goods, perhaps at lower prices.

It could take several quarters for this upside to become evident. With the stock down as much as it is now, the price makes that worth the wait.