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5 Top-Ranked S&P 500 Stocks at Attractive Price

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After hitting record highs, Wall Street took a bloodbath this week on rising fears of the coronavirus outbreak turning into a pandemic. The Dow Jones recorded its largest two-day decline of 6.6% since Feb 5, 2018 and the S&P 500 Index saw its largest two-day fall of 6.3% since Aug 24, 2015. The Nasdaq Composite registered its biggest two-day decline of 6.4% since Jun 27, 2016.

The number of virus cases is rising worldwide. According to the World Health Organization, there are now 80,238 cases in 34 countries and at least 2,700 related deaths. South Korea raised its coronavirus alert to the “highest level,” with total case increasing to more than 800. Italy has been the worst affected country outside of Asia, with more than 130 reported cases and seven deaths. Iran confirmed 12 deaths and 61 cases in the country.

Market sentiments deteriorated further after the Centers for Disease Control and Prevention warned that the outbreak “might be bad,” and that Americans should prepare for the possibility of disruptions, even though the current threat to the United States remains low.

The wave of selling has pushed the three major indices into red for the year. With the monster two-day decline, 64% of stocks in the S&P 500 are in correction levels, meaning that these are down at least 10% from their recent 52-week highs while 25% are at bear levels or at least 20% below their 52-week highs. Overall, the index has shed an estimated $1.737 trillion in value in two days, according to S&P Dow Jones Indices’ Senior Index Analyst Howard Silverblatt.

However, the coronavirus-triggered sell-off has created a buying opportunity for long-term investors. The market is speculating that the central banks across the globe would step in to counter any economic weakness stemming from the outbreak. As a result, there are many stocks in the S&P 500 have been in the red over the past week but possess a Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or better, and a positive earnings estimate revision for the current fiscal year in a month. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted five of them that have declined the most over the past couple of days but could be bargain buys for long-term investors:

Lam Research Corporation (LRCX - Free Report) – Down 11.4%

With a market cap of $43.7 billion, Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. The company has seen solid earnings estimate revision of $1.62 for this fiscal year (ending June 2020) over the past month with an expected earnings growth rate of 15.6%. It has a Zacks Rank #2 and VGM Score of A.

Ralph Lauren Corporation (RL - Free Report) – Down 10%

It is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. The stock has seen positive earnings estimate revision of 13 cents for this fiscal year (ending March 2020) over the past month and has an expected earnings growth rate of 8.8%. Ralph Lauren has a market cap of $8.1 billion and carries a Zacks Rank #2. It flaunts a VGM Score of A.

Lincoln National Corporation (LNC - Free Report) – Down 9.8%

It is a diversified life insurance and investment management company. The stock has seen positive earnings estimate revision for 9 cents for this year over the past month and has an estimated earnings growth rate of 135.2%. LNC has a market cap of $10.8 billion and carries a Zacks Rank #2. Its VGM Score currently is B.

Qorvo Inc. (QRVO - Free Report) – Down 9.1%

It is a leading provider of core technologies and radio frequency solutions for mobile, infrastructure and aerospace/defense applications. The stock has seen upward earnings estimate revision of 60 cents for this fiscal year (ending March 2020) over the past month and has an expected growth rate of 9.2%. It sports a Zacks Rank #1 and VGM Score of B. T. Qorvo has a market cap of $11.2 billion.

Fortinet Inc. (FTNT - Free Report) – Down 8.8%

It is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide. With a market cap of $18.6 billion, the stock has witnessed positive earnings estimate revision of a penny for this year in the past month and has estimated earnings growth rate of 10.1%. The stock has a Zacks Rank #2 and VGM Score of B.

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