While uncertainties are still elevated, involving recession risks and inflation, the economy has tried to remain resilient in recent months. Following recent turmoil from the high-profile bank failures and a slowing economy, the Fed seems close to ending its streak of raising interest rates.
Given this backdrop, investing in shares of fundamentally sound stocks Group 1 Automotive, Inc. (GPI – Get Rating), Golden Agri-Resources Ltd (GARPY – Get Rating), and Friedman Industries, Incorporated (FRD – Get Rating), which are trading at a discount, could be worth your while in May 2023.
The recent weak economic figures raised concerns about the U.S. economy tipping into recession. The latest data from the Commerce Department indicated that Gross Domestic Product (GDP) rose at a 1.1% annual rate in the first quarter, below the 2% estimate.
According to former Treasury Secretary Larry Summers, the U.S. has a 70% chance of tipping into a recession within the next year, as stagflation is brewing in the economy.
Meanwhile, inflation still looms well above the Fed’s target at 5%, per the latest Consumer Price Index (CPI) report. Moreover, this environment has caused a shift from growth stocks to value stocks as investors…
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