Rising inflationary pressure, a weak job market, and the Fed’s potential tapering could prolong stock market instability in the near term. However, the market is expected to generate some momentum later this month as the earnings season kicks off. As such, Wall Street analysts expect lesser-known stocks Cazoo Group (CZOO), 23andMe (ME), and Sharecare (SHCR) to deliver decent upside. Read on.Weaker-than-expected labor market data, uncertainty surrounding the Fed’s potential tapering, and rising inflation have caused the benchmark indices to edge lower of late. However, with the third-quarter earnings season kicking off this week, investors are hopeful. Also, according to veteran chart analyst Larry Williams, the stock market is expected to move higher in late October.
Given this, we think investing in stocks that are overlooked by many investors but have the potential to deliver solid returns in the near term could be ideal bets now.
Underscoring this point, Wall Street analysts are optimistic about the upside potential of under-the-radar stocks Cazoo Group Ltd (CZOO), 23andMe Holding Co. (ME), and Sharecare, Inc. (SHCR) because of their sound fundamentals.