by Ian Cooper

Markets are still dealing with inflation, fears of recession, a far more aggressive Federal Reserve, and geopolitical tensions. But it appears most of the negativity has been priced in.

And there’s hope the major indices could return to the black.

If the bottom is finally in, it’s time to go bargain hunting with stocks such as:

Target Corp. (TGT)

With Target, you can collect a 2.91% dividend yield, as the stock recovers.

Sure, the company fell on hard times. Supply chain issues caused a headache. The company was forced to cut its guidance twice, and missed on recent earnings. However, much of the bad news has been priced into the stock. And the pain won’t last forever.

In fact, as noted by Barron’s: Wells Fargo analyst Edward Kelly, who recently upgraded Target to Overweight from Equal Weight, believes that the expectations for next year’s profits among buy-side analysts are about $11, below even the sell-side average close to $12. Kelly, however, thinks that Target can earn an above-consensus $12.70 in fiscal 2023, and he argues that this year’s margin issues are temporary.

“Target has shown resilience in mild consumer recessions,” he writes. “Management is making the right decisions to address the challenges at retail,” boosting his confidence in Target’s “recovery potential.”

In short, ignore the near-term chaos. Focus on the potential long-term opportunity with TGT. And like we said, you can collect a 2.91% dividend yield, as the stock recovers.

Advertisement - Don't settle for less. Grab Breakout Trades That Use Panic To Your Advantage - Click Here to See How it Works -

Adobe Systems (ADBE)

After gapping down, the stock has become severely oversold at lows not seen since 2020. It’s also oversold on RSI, MACD, and Williams’ %R. 

All after the company announced it would buy software company Figma for $20 billion – a deal investors don’t seem to like very much. But for it to have pulled back this much, this fast because they didn’t like it is a bit ridiculous.

Insiders seem to agree, with CFO Dan Durn buying $936,360 for 3,250 shares at an average price of $288.11 a share. The last time an insider bought ADBE was early January. That’s when Director Laura Desmond bought 973 shares for $500,000. 

Helping, analysts at Bernstein say ADBE is a buy.

As noted by Barron’s: Bernstein’s Mark Moerdler said the selloff “is overblown, given the quality of the business, the drivers of the acquisition, and opportunities Figma presents to Adobe.” Positive “sentiments will return” once the deal closes, he adds. 

Microsoft (MSFT)

Microsoft is exploding higher, and could test $265 next.

While there’s no new news to support Tuesday’s move, it’s more than likely moving just because it became so incredibly oversold. MSFT is still oversold on RSI and MACD.

Also, about a week ago, Raymond James resumed coverage of the MSFT with an outperform rating with a $300 price target. 

As noted by The Fly: Raymond James analyst Andrew Marok resumed coverage of Microsoft with an Outperform rating and $300 price target. He sees Microsoft having “a collection of sustainable advantages,” including strong positioning in public cloud, gaming and digital advertising; scale advantages from years of investment; deep relationships with enterprise software buyers; “essentially universal brand recognition”; and a position as a “low risk” vendor who can take share regardless of, or perhaps especially during, soft economic periods.