The major stock market indexes have been hovering near their all-time highs despite concerns over inflation and other worrisome issues. Therefore, we think it could be wise now to add fundamentally sound stocks WM Technology (MAPS) and Enthusiast Gaming (EGLX) to one’s portfolio. Though these two stocks missed earnings estimates in their last reported quarter, Wall Street analysts expect them to rally by more than 85% in price in the near term. Let’s discuss.The historically-high inflation, labor shortages, ongoing supply chain disruptions, and rising oil prices have made investors anxious. The historically-high inflation, labor shortages, ongoing supply chain disruptions, and rising oil prices have made investors anxious. The consumer price index increased 6.2% in October—its biggest jump since December 1990. However, robust retail sales drove the stock market higher, with the S&P 500 and Nasdaq now currently hovering near their record highs.
According to the U.S. Commerce Department, retail sales rose a seasonally adjusted 1.7% in October. In addition, the unemployment rate fell to 4.6% in October, its lowest level since the economic recovery began in May 2020. Furthermore, Goldman Sachs (NYSE:GS) expects the economic recovery to reaccelerate in the coming quarters, driving the unemployment rate back to a 50-year low by the end of next year.
Against this favorable backdrop, we think it could be wise to bet on fundamentally-strong stocks WM Technology, Inc. (MAPS) and Enthusiast Gaming Holdings Inc. (EGLX). Though these companies missed earnings estimates in their last reported quarter, they have the potential to soar in price this month and beyond. Wall Street analysts expect these stocks to rally more than 85% in the near term.