The latest U.S. inflation data for August was in line with expectations, showing a decrease to 2.5% from 2.9% in July. However, a higher-than-expected core inflation rate briefly shook Wall Street before the market recovered and closed higher.
The rebound was fueled by a tech rally led by Nvidia, which helped offset concerns about a potential interest rate cut from the Federal Reserve next week.
As investors analyze the CPI data, expectations for a rate cut have increased, but economic uncertainty remains a key factor to consider.
In times of market volatility, focusing on quality stocks with growth potential and dividends can be a smart strategy. Using the investing.com screener, I identified 17 stocks that meet specific criteria for market capitalization, analyst recommendations, and dividend yield.
After applying additional filters to reduce risk, I selected 3 standout stocks that offer significant upside potential:
1. Tencent Music Entertainment Group
Tencent Music Entertainment Group is a leading entertainment platform in China, specializing in music streaming and online karaoke. Analysts estimate a 35.8% upside from the current trading price, with a target price of $14.69.
2. Schlumberger NV
Schlumberger NV is a global leader in energy technology, with a potential upside of 33.4% according to InvestingPro’s Fair Value. Analysts have set a target price of $64.88.
3. NetEase
NetEase operates in China’s communication services sector, offering online gaming and content delivery services. InvestingPro estimates a 24% upside from the current price, with a target price of $116.13 set by analysts.
Investors can use InvestingPro’s free screening features to replicate this stock selection or customize their own portfolio for uncertain economic times.
Overall, focusing on high-potential stocks with dividends and growth prospects can help investors navigate market volatility and uncertainty, potentially leading to strong returns in the long term.