Markets have rapidly repriced in the growth prospects for a number of companies. While some of the most speculative names have taken the biggest dive, even great companies that have remained profitable while showing slow and steady growth are at a point where they’ve oversold.
For long-term investors, this marks the best point in years to buy growth at a respectable valuation. That’s especially true when it involves companies playing to strong growth trends now.
Investors looking forward can get great returns in blue chip companies right now. One such player is Oracle (ORCL). The database company’s growth in cloud services makes it a long-term winner, even amid a slowing economy.
Shares are down about one-third off of their 52-week high in the past year. Earnings are slightly off, but revenues are up, and the company’s consistent cash flow from its services make it look attractive here.
Action to take: Investors can buy shares of the company at under 14 times forward earnings, and get a starting dividend yield of 1.9 percent here. Investors today will likely see sizeable capital gains when the current bear market ends.
For traders, the January $75 calls, last going for about $3.60, could get a little cheaper in the coming days. But they’re well priced for a potential upside going into the end of the year. Traders may want to buy some contracts now, and add more on any short-term weakness.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.