Stocks to buy

While time in the market generally beats out timing the market, it’s understandable that some investors may want to hold off on looking for stocks to buy. After all, equities continue to digest the sudden failure of a handful of financial institutions. The realization that archaic bank runs can happen in modern American society sent a chill down investors’ spines.

Not everyone is taking a pessimistic view though. Rather surprisingly, legendary hedge fund manager Michael Burry recently tweeted that the quick action the U.S. government took to fend off a banking crisis contagion represented a game-changing stance. Earlier, Burry tweeted out that he saw little risk with the much-discussed bank runs.

Acquiring stocks now may turn out to be a bold and lucrative decision. At some point, the pain will pass. Whether you want to dive in now or wait a bit, these are some of the top stocks to buy.

ABC AmerisourceBergen $152.05
CAH Cardinal Health $70.51
VLO Valero Energy $127.17
ANDE Andersons $39.68
PFGC Performance Food Group $54.72
BNTX BioNTech $131.96
OPAD Offerpad Solutions $0.57

AmerisourceBergen (ABC)

Source: shutterstock.com/Champhei

First up on my list of stocks to buy before the market regains its mojo is AmerisourceBergen (NYSE:ABC). The company is a wholesale distributor of generic and brand-name pharmaceuticals, over-the-counter healthcare products and home healthcare supplies and equipment. Its customers include hospitals, clinics, healthcare systems and pharmacies. ABC is down 9% since the beginning of the year and 13% since hitting a 52-week high in early December.

ABC offers decent stability in its balance sheet. In particular, its Altman Z-Score is 4.62, indicating low bankruptcy risk. Operationally, the company’s three-year EBITDA growth rate pings at 24.5%, outpacing nearly 69% of its peers.

Further, AmerisourceBergen features an undervalued profile relative to revenue. Presently, ABC has a trailing sales multiple of 0.13, better than 82% of the competition.

Finally, Wall Street analysts peg ABC as a “moderate buy.” Their average price target stands at $182.91, implying 20% upside potential.

Cardinal Health (CAH)

Source: Shutterstock

Cardinal Health (NYSE:CAH) distributes pharmaceuticals and medical products in the United States, Canada, Europe and Asia. In the U.S., it serves nearly 90% of the country’s hospitals, along with 60,000 pharmacies, and more than 10,000 specialty physician offices and clinics, according to the company’s profile.

Since the January opener, CAH has given up 8% of its equity value, and it is down 14% since hitting a 52-week high in November. However, it has held up very well over the past year, rising 27%.

Like AmerisourceBergen, Cardinal Health has a stable balance sheet. Its Altman Z-Score of 4.59 indicates low bankruptcy risk. Shares also appear undervalued, trading with a forward earnings multiple of 11.1. That is better than nearly two-thirds of medical distribution companies.

Analysts peg CAH as a “moderate buy” with an average price target of $87.40. If shares can hit this level when the market recovers, investors stand to make 24%.

Valero Energy (VLO)

Source: JustPixs / Shutterstock.com

As a general theme, bank runs tend to be deflationary as they take money out of the financial system’s circulation. Therefore, it’s not surprising that hydrocarbon energy specialist Valero Energy (NYSE:VLO) suffered near-term volatility. While the stock is up 1% on a year-to-date basis, it has fallen 9% in the past month. Yet, shares remain up 47% over the past year.

Nevertheless, VLO could move higher still once the market stabilizes. In addition to its solid balance sheet, Valero features strong operations. Its three-year revenue growth rate pings at 19.4%, above 77% of its peers. Further, it enjoys a discounted profile. Presently, VLO is trading at 4.4 times trailing earnings, better than 69% of sector rivals.

Turning to Wall Street’s view, analysts consider VLO a “strong buy.” Their average price target stands at $161.67, implying upside potential of 27%.

Andersons (ANDE)

Source: Lost Shoe Studios / Shutterstock.com

An American agribusiness established in 1947, Andersons (NASDAQ:ANDE) “conducts business in the commodity merchandising, renewables, and plant nutrient sectors.” Similar to the other stocks to buy on this list, Andersons benefits from permanent relevance. No matter how advanced we become as a society, we’ve got to eat.

So far this year, the stock has gained more than 13%. However, in the trailing month, ANDE dipped 9%. In the past week alone, the security is down by 9%, as well, presenting an opportunity for contrarian investors to pick up shares at a discount. Shares are trading at just 0.08 times trailing sales, ranking better than 93% of the competition.

Looking to the Street, analysts peg ANDE as a “moderate buy.” Further, their average price target stands at $52.50, implying upside of 32%. With so much potential, it’s one of the stocks to buy.

Performance Food Group (PFGC)

Source: Vitpho/Shutterstock.com

Founded in 1885 in Richmond, Virginia, Performance Food Group (NYSE:PFGC) distributes a range of food products. Per its public profile, the company has three divisions, each catering to specific market segments: Performance Foodservice, Vistar and PFG Customized.

While shares are up 13% over the past year, they are down 6% on a year-to-date-basis. Still, the volatility should be a temporary concern. As with Andersons above, Performance Food benefits from fulfilling a critical need.

While Performance Food doesn’t have the greatest stability in its balance sheet, its Altman Z-Score of 5.67 signals low bankruptcy risk. Operationally, its stout three-year revenue growth rate of 21.5% outpaces over 93% of the field. With a price-to-sales ratio of 0.15, the stock ranks better than nearly 82% of the competition.

Lastly, covering analysts rate PFGC a “strong buy.” Their average price target of $73.36 implies upside of 34%. Therefore, it’s worth investigating as one of the stocks to buy.

BioNTech (BNTX)

Source: Palatinate Stock / Shutterstock.com

Based in Germany, BioNTech (NASDAQ:BNTX) represents an innovative biotech company. It was instrumental in distributing a vaccine for the coronavirus along with partner Pfizer (NYSE:PFE). However, with fears of Covid-19 fading rapidly, so too did the immediate relevance of BNTX. Since the January opener, shares have tumbled 12%. In the trailing year, they’re down 19%, outpacing the decline in the broader market.

Still, if you can handle the heat, BNTX could make for a compelling case as one of the stocks to buy for a rebound. Over time, BioNTech can leverage its success with the Covid-19 vaccine for other solutions.

Financially, the company has several attractive attributes. For example, its cash-to-debt ratio is 49, better than 68% of the industry. Notably, the market prices BNTX at a forward multiple of 16.6, ranking better than 73% of its rivals.

Finally, Wall Street analysts consider BNTX a “moderate buy.” Their average price target pings at $186, implying upside potential of 41%.

Offerpad Solutions (OPAD)

Source: Shutterstock

Easily the riskiest idea on this list of stocks to buy, Offerpad Solutions (NYSE:OPAD) is only appropriate for gamblers. If you happen to believe in the recovery of the residential real estate market, then Offerpad might intrigue you. Essentially, the company facilitates a quick and convenient way to buy and sell homes.

To be sure, all it takes is for the Federal Reserve to hike interest rates aggressively and this house of cards can fall. Nevertheless, at the moment, Offerpad features some redeeming financial attributes. On the balance sheet, OPAD has an Altman Z-Score of 4.19, which indicates low bankruptcy risk. Operationally, its three-year revenue growth rate of 52.9% is bonkers, though its sales momentum is sliding.

Interestingly, OPAD features a price-to-free-cash-flow ratio of 0.4. In contrast, the sector median value comes in at 10.35.

Looking to the Street, analysts covering OPAD rate it a “moderate buy.” If the stock can hit their consensus price target of $1, investors who buy now stand to make 74%.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.