The benchmark equity indices are currently hovering near their all-time highs. And solid third-quarter corporate earnings and the Fed’s loose monetary policy are expected to support the market’s momentum despite investors’ concerns about high inflation. Given the favorable trends, Wall Street analysts see more than a 25% potential upside in low-priced stocks Castlight Health (NYSE:CSLT) and Lincoln (LINC). Thus, we think now could be the right time to scoop up these stocks. Let’s discuss.The S&P 500 registered 65 all-time highs this year and has more than doubled since the onset of the COVID-19 pandemic. The benchmark saw eight straight all-time closing highs last week. Although the major benchmarks dipped in their last trading session due to concerns over the market’s vulnerability to rising inflation and a surge in COVID-19 cases, the indices are still hovering near their record highs. The Dow is just 1.7% shy of its all-time high, while S&P 500 and Nasdaq are down 0.6% and 0.8% from their record highs, respectively.
Also on the positive side macroeconomically, weekly jobless claims are expected to reach a new pandemic-era low. Analysts expect unemployment claims to come in at 260,000 versus 267,000 reported in the prior week, which would mark the sixth straight week with jobless claims below the 300,000 level. Also, President Biden recently signed the long-awaited trillion-dollar bipartisan infrastructure bill into law, which could potentially boost the U.S economy further.
The economic recovery, low-interest-rate environment, and solid corporate earnings should continue supporting the stock market. Given this backdrop, Wall Street analysts expect low-priced stocks Castlight Health, Inc. (CSLT) and Lincoln Educational Services Corporation (LINC) to rally by more than 25% in the near term. This, along with solid fundamentals, we think makes these stocks good bets right now.