The stock market is afraid, but there are pockets of strength if you know where to look

So now is the time for investors to find companies that can still thrive in more difficult economic conditions — because profits still matter, even in a correction or bear market. Heck, some would argue that fundamentals are more important now. When the market was in bull mode, the proverbial rising tide lifted all boats.

Take Friday as an example of finding diamonds in a rough market. The broader market tanked, with the Dow falling more than 250 points in midday trade to extend its 1,063-point plunge Thursday. Yet there were still winners. Booking Holdings (BKNG) and Kellogg (K) gained Thursday after posting strong quarterly results. People are still traveling — and eating cereal. Kellogg rallied again Friday, gaining another 4%.
health insurance giant cigna (IC) was another winner Friday, gaining 5% after reporting revenue and profits that topped estimates and an upbeat outlook for the rest of the year.
Collectible figurines maker funko (FNKO) surged nearly 20% Friday after it posted better than expected earnings and sales. The company also announced a round of new investments from a firm led by former News Corp. (NWSA) and Fox (FOXA) executive Peter Chernin. eBay (EBAY) and former disney (DIS) CEO Bob Iger also invested in Funko.
chip maker OMG (OMG) also bucked the downward trend Friday, rising 2% — although it did fall Thursday with the broader market. The company’s shares have surged more than 12% this week after the company reported strong sales and earnings as it continues to take market share from the likes of Intel (INTC) and Nvidia (NVDA).

Energy stocks are also continuing to hold up well in this tough market, thanks to surging crude prices. Many oil and utility stocks also pay big dividends, which provide stability and comfort to investors in these volatile times.

Utility NRG (NRG) soared 8% Friday, making it the top gainer in the S&P 500. Oil and gas exploration firm Pioneer Natural Resources (PXD) rose 4% Friday after posting solid results earlier in the week, and the stock is now trading at a record high.

It goes to show that even in the scariest of times for the markets, there are always opportunities for investors to find stocks that are still worth buying.


Leave a Comment