Buy dips in these 3 mid-caps

Last year, “buy dip“Was a highly effective trading strategy. Every time the stock market goes down, it eventually hits new highs. – MarketBeat

In the US mid-cap space, this lasted till November 2021. Since then the S&P 400 index has declined significantly. But like an unbalanced party platter, there aren’t enough chips to go with them.

Contrary to what investors are accustomed to, the 2022 market crash has been followed by a deep downtrend. on Friday, mid Cap The benchmark has fallen to its lowest level since December 2020.

“Sell the Rip” has taken over as the winning strategy in 2022. Any fraction of the market rally has been snuffed out by short-term profit taking.

This has turned the once infallible buy dip approach into a far more difficult idea. That doesn’t mean the maneuver is dead. It simply means that investors need to be more selective.

Bullish fundamentals and supportive technicals suggest that investors should put some chips in these three mid-cap dips.

Is Alaska Air Group Stock Oversold?

Alaska Air Group, Inc. ,NYSE: ALK, Nearly 50% have been grounded since their post-Covid peak. Oversold conditions are starting to move with the momentum reaching lower levels for the third consecutive month.

The airliner’s stock price recently fell outside its lower Bollinger Bands to below $40, a level not seen since 2020. A Relative Strength Indicator (RSI) reading below 30 also points to an extreme downside move that is likely to be corrected.

Next month’s earnings report may mark the beginning of a correction, which is turning out to be a good position. Management dramatically raised its outlook for second-quarter revenue growth, a reflection of stronger wind travel demand and favorable ticket pricing. Relative to 2019 results, it now sees Q2 revenue growing 12% to 14%. At the midpoint, it is double its previous forecast.

However, the market has chosen to focus on high fuel costs and the threat of a pilot strike on Alaska Air. But with Fed rate hikes and oil prices plunging after pilot contract negotiations, both issues should be merely near-term turbulence.

What is a Good Homebuilder Rebound Stock?

Like the Other Housewives, It’s Been a Tough Year Skyline Champion Corporation (NYSE: Sky, Soaring mortgage rates coupled with high lumber and wage costs have dragged one of the hottest areas of the past year into the basement.

Skyline Champion has run into a downturn, but to what extent has he risen. This is not your ordinary residential construction company. It specializes in manufactured and modular homes that provide shelter for families, senior citizens, the workforce and the hospitality sector.

Living in this segment of the housing market offers benefits that are becoming more relevant in the current market. With housing supplies still limited, Skyline’s manufactured buildings represent an attractive alternative to the traditional 6-month waiting period associated with a new construction. And since homes are built at centralized manufacturing facilities rather than on-site, labor costs are significantly lower. This helps make home prices more affordable for potential buyers, a feature that gains value in a rising rate environment.

Skyline Champion was a $85 stock six months ago. Is now trading in the mid $40s and is pointing to the side with several technical indicators oversold This is a more economical time to create conditions.

Is Signet Jewelers stock a good earning game?

Signet Jewelers Limited (NYSE: SIG, The share price has been cut in half since November 2021. The fact that trading volume has been relatively benign along the way indicates an inevitable return.

The leading jewelery and watch retailer has adapted well to the challenges of the pandemic. Not only is it benefiting from suppressed engagement and wedding ring demand, but it has an emerging e-commerce channel that didn’t exist three years ago. The segment dazzled once again during first quarter results, confirming that consumers are becoming more comfortable buying jewelry online.

Despite omni-channel momentum in the business, Signet’s shares have failed to shine in 2022. There are growing concerns about the impact of high inflation That has caused management to take a cautious stance on guidance on discretionary spending. This could certainly keep pressure on the stock for the rest of the year.

However, when the earning season starts, there will be ray of hope. That’s because Signet usually beats earnings expectations, leading to significant rallies. Earlier this month, the stock was heavily priced higher on the heels of better-than-expected bottom-line performance. Later it fell along with the rest of the market.

So as long as inflation concerns persist and the “sell rip” mentality prevails, continued rallies from consumer cyclical names like Signet Jewelers will be hard to come by. Ultimately $50 will be seen as a great long-term buying opportunity. In the meantime, the stock could be having a dazzling earnings game.