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Where to Find Deep Stock Bargains

Where to Find Deep Stock Bargains

Wall Street took another trip lower on Tuesday, but there was some good news in it: The downturn was disjointed, and in fact several areas of the market recovered after a violent Monday tumble. First, the bad news. U.S. oil prices continued to crater, dipping 7.1% to a year-low $55.69 per barrel, clipping Dow components Exxon Mobil (XOM, -2.3%) and Chevron (CVX, -1.7%). Fellow Dow member Boeing (BA) tumbled 2.1% after safety experts alleged the aircraft maker withheld vital safety information about the Boeing 737 model involved in a fatal Lion Air crash in October. That pulled the industrial average 0.4% lower to 25,286.

The good news: Tuesday also celebrated some rebounds and revealed some buying opportunities. Financial stocks, which were brutalized yesterday, bounced back, as did various areas of the technology sector. Particularly bouncy were the "BAIT" stocks -- a quartet of Chinese tech stocks including Alibaba (BABA) and Baidu (BIDU) that are similar to American "FANG" stocks such as Amazon.com (AMZN) and Google parent Alphabet (GOOGL). Also noteworthy is a high number of larger companies now trading anywhere between 20%-50% off their 52-week highs. We think the bears have gone too far on these 10 stocks, which are poised to claw back some gains.

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