The major benchmark indices are hovering near their record highs despite the resurgence of the COVID-19 cases, reflecting investor optimism. The bullish market sentiment should allow undervalued stocks Genesco (NYSE:GCO), SilverBow (SBOW), LSI (LYTS), and Ultralife (ULBI) to deliver substantial upside in the near term. So, please read on for a closer look at these names.The fast-paced macroeconomic recovery and solid corporate earnings have allowed stock markets to remain bullish this year. The Fed’s recent announcement that it is in no rush to hike the interest rates caused the benchmark indexes to close at record highs yesterday.
The S&P 500 index increased for seven straight months to hit 53 record closes so far this year, while the tech-heavy Nasdaq Composite has rallied for three consecutive months.
This trend is expected to continue, given the strong investor sentiment and favorable government policies. Thus, we think fundamentally strong stocks Genesco Inc . (GCO), SilverBow Resources, Inc. (NYSE:SBOW), LSI Industries Inc. (LYTS), and Ultralife Corporation (ULBI), which look undervalued at their current price levels, could witness strong momentum in the near term.