the S&P 500 has officially dipped in to correction territory meaning the price has pulled back roughly 10% from its recent highs there has certainly been a ton of Carnage at the top of the index with the likes of Apple Microsoft Nvidia and Tesla really struggling and when we're talking about an index that is market cap weighted when you have stocks at the top that are struggling it can bring the whole ship down however although there is a lot of uncertainty uncertainty around tariffs economic growth how the job market is going to react what is the Fed going to do plenty of uncertainty to go around but history shows that when we do in fact enter into a correction that is typically a good time to nibble looking at this chart here you can see the corrections over the past 20 years and how the index has fared 12 months later only two times did we end up negative which tells you how now could be that good time to start entering some positions and notice how I mentioned nibbling earlier we don't want to back the truck up as there are still those uncertainties out there in the market but we also don't want to try to time the market exactly we prefer time in the market and there's plenty of stocks out there that are still trading at Great valuations and some that are getting close to entry price points for me as such in today's video we're going to be going through seven stocks that are high on my watch list to buy but before we unveil all of these do me a huge favor simp simply show your appreciation by clicking that like button down below subscribe to the channel and let's jump into [Music] [Applause] [Applause] it hey everyone Mark Ron here back for another video as always I'm a CPA and not a financial adviser so please do not take this as Financial advice and before we begin let me thank today's video sponsor which is the mle fool the mle fool has a ton of great resources and products available for investors of all different levels and right now if you go to full. com Mark you could sign up to receive their 10 best stocks to buy right now all right let's jump back into our video quickly taking a look at seven stocks that are high in my watch list to buy beginning with stock to watch number one which is going to be Bank of America stock ticker BAC when it comes to Bank of America they are one of the two largest banks here in the US the other being that of JP Morgan well a lot of people like to invest and have invested in JP Morgan for a number of years but if you put both of these Banks up today side by side and they were trading at the exact same valuation I would choose Bank of America I like the CEO Brian Monahan I believe he's a great leader and he is going to have this company pointed in the right direction for the long term the company currently has a market cap of $311 billion and they're 5 twoe high price point was roughly $48 meaning that the pullback from those highs now has the stock down 15% heading into a trump 2. 0 presidency one of the sectors that is expected to benefit the most is going to be financials why because of less regulation financials for a number of years has been one of the most regulated Industries in the market sometimes rightfully so we can go back to the great financial crisis but now with less Reg ation that should impact in a positive manner in the near- term the financial sector big Banks another reason to like Banks is that I believe that the m&a activity is really going to pick up in the back half of the year and then turning our attention to the near-term right now we have interest rates that are still at an elevated level and they're expected to say higher for longer which is going to impact banks in a positive manner because why they are going to have more net interest margin which is going to be the difference between the amount of income that they bring in from loans compared to the amount of money that they send out by way of savings accounts money that is paid to you for savings accounts that you have anything in between is considered net interest margin right now shares of BAC traded a price to earnings multiple of just 10.
7 times but with banks I prefer to look at Price to Book where shares of BAC currently trade at just 1. 05 and anything below one is intriguing to me when it comes comes to Bank of America the bank also pays a solid dividend that yields 2. 6% and they have a 5-year dividend growth rate of 8% and management has grown the dividend for 11 consecutive years and counting looking now at tip ranks where we can see that analysts have an average 12-month price target of nearly $53 per share implying roughly 30% upside from current levels and that brings us to stock to watch number two which is going to be Taiwan semiconductor stock ticker TSM and when it comes to Taiwan semi this is a name that we've talked a lot about on my weekly live show stock market after hours every Wednesday after the market close and this is probably going to be one of the easiest buys on today's list because I like the valuation where it's at right now as I've mentioned before when it comes to investing in TSM you don't have to worry about picking a chip winner Nvidia AMD Qualcomm broadcom or Amazon for that matter Taiwan semi generates and manufactures most of the chips for all of these companies the company currently has a market cap of 93 billion making it one of the largest in the US markets their 52e high price point was $226 and the pullback as of today has now reached nearly 25% ever since the Deep seek news that came out of China anything AI or chip related has really been under intense selling pressure but I believe it's really overblown when it comes to Taiwan semi because when you think about the Deep seek news it wasn't about how many chips we need it was more about do we actually need those super high powerful chips or could we use less powerful chips Taiwan semi isn't really focused on creating powerful or less powerful they're going to create more capacity and that's what we need more of more and more chips meaning Taiwan semi is going to win no matter what now when it comes to risk it's not to say that Taiwan semi has no risk because obviously AI spending can come down we have plenty of geopolitical concerns and of course China looking to take over Taiwan are all risk to be aware of when investing in Taiwan semi right now shares of TSM traded a price to earnings multiple below that of the S&P 500 at just 18.
9 times with EPS growth expected to be around 29% giving shares a PEG ratio well below one let's say the those growth estimates are in fact too high the company could miss these estimates by 15% and still be trading at a PE multiple right at their 5-year average the company also pays a dividend that yields 1. 4% but not known much for the dividend as it only grows at an average rate of 3% roughly now taking a look at the tip ranks where we can see that analysts have an average 12-month price target of nearly $248 per share implying more than 40% upside from current levels and that leads us to stock to watch number three which is going to be Amazon stock ticker amzn now this is not a stock that's new to this channel because I put out recent videos as of last year making Amazon one of my top stock picks this is a name that I love to invest in and believe that the future is so very bright this is a company that I've gone through and and pounded the table on when it was trading at 170 and then I said let's pump the brakes as it crept up to $240 now how did I know to buy at one level and how to not buy or sell at another level that's simply going through my valuation checklist I continue to look at stocks from every different angle and this valuation checklist is something that I go through within my 6 we investing accelerator course something that you can check out in the link down in the description below Amazon currently has a market cap of $2. 1 trillion making it one of the largest of the top 10 companies here in the US and they're 52 week high was $242 and the pullback now is sitting at nearly 20% Amazon is one of those companies I love for a number of reasons but one of the primary reasons is due in part that they have a diversified portfolio meaning that if one area of the business is slow there's plenty of other areas of the business that can pick up the slack and when you think about Amazon you don't just think about e-commerce they also have Cloud advertising digital subscriptions and yes even AI Amazon has been investing heavily and backing AI startup company anthropic which recently went through a round of funding that valued the company at more than $60 billion Amazon has invested 8 billion in the AI startup company as a minority partner and those Investments are now worth 14 billion based on the latest valuation right now speaking of valuation Amazon shares trade at a PE multiple of 30.
6 times briefly falling below 30 which is not something we have seen but again this is a high growth company and if you look at their EV to eida a metric that I love to look at this is one of the cheapest points you've ever been able to buy Amazon at analysts are also upbeat on the stock as they have an average 12-month price target of nearly $270 implying more than 35% upside from current levels and a look at the lowest price target of all analyst is sitting at 203 Which is higher than today's closing price that should tell you right there and give you a little bit more confidence as an investor I will continue to look for opportunities to buy more Amazon at under $200 and even under 1885 if we can get that low and that leads us to stock to watch number four which is going to be the Home Depot stock ticker HD now this might be an interesting name one that you may have not expected but HD or Home Depot has been a stock that I have loved for a number of years and I owned it up until the pandemic back in 201 21 when it went through this massive boom of Home Improvement and the stock price skyrocketed at that point in time I sold out of my shares and looking back always hindsight is 2020 it proved to be a great decision but now that we've gone through a low period for Home Depot interest rates have been high which is kind of weighed on the real estate sector as a whole I'm expecting those interest rates to slowly but surely come down and at the same time we're entering the very important spring selling season which typically bodess well for both Real Estate and Home Depot alike the company currently has a market cap of 349 billion and they reached a 52e high of nearly $440 meaning at today's price point we are sitting at a pullback from their recent highs of roughly 20% Home Depot has long been the clear leader when it comes to Home Improvement their close competitor being Lowe's and Lowe's is done a fine job closing the Gap that was once very large and you could really not go wrong with either of these companies heading into the spring selling season but I have long loved Home Depot in fact I've own both of these companies here but they have been well known for their dividend not only paying but having strong dividend growth rates and now heading into the spring selling season after a few years of negative comps those comps now are going to be a benefit to Home Depo because the stakes aren't as high and they're going to be a little bit easier to beat those last year comp comps and I also think the Home Improvement after going through a massive boom during the pandemic can creep up again especially if we see interest rates come down so again this isn't a name that I'm going to be backing the truck up into it's just a name that I want to start nibbling at at the right price looking at the chart here we can see that that 320 level is the next level of support for the stock and we currently have an RSI sitting all the way down at 27 which is intriguing indicating that shares are Curr currently oversold in terms of valuation right now shares of HD trade at a PE multiple of 23 which is right in line with their 5year average which is also why I'm not rushing to buy stocks at current levels and why the stock is on my watch list but a price point around $300 is the ultimate goal as that is an area that I would like to add as it would put shares at a 20 times multiple meaning a great entry point the company is long known for being a strong dividend grower shares of currently yield a dividend of 2. 7% and they have a 5-year dividend growth rate sitting at 10% and 15 consecutive years of dividend hikes looking now at tip ranks we could see that analysts have an average 12-month price target of $450 per share implying nearly 30% upside from current levels some of these stocks that we're talking about today are already within my portfolio and I'm looking to add to them but some of them like Home Depot that we just mentioned is not in my portfolio and if you're interested Ed in seeing all of the stocks and ETFs within my portfolio then consider becoming an edge plus subscriber within my stock investors Edge newsletter not only do you get trade alerts in my monthly portfolio you get weekly deep Dives earning recap and giving you an edge report that will set your week and give you Direction in the week ahead and so many more perks but there's going to be a price hike coming in April 1st so if you're interested in joining and becoming an edge plus member do it before the price hike lock in the current rate today and you can do this by checking out the link down in the description below and that's going to lead us to stock to watch number five which is going to be prologis stock ticker plld you didn't really think that we were going to go through seven stocks today and I wasn't going to mention a Reit you know that I love talking about and investing in REITs and prologis is probably one of my favorites this is another position that's already within my portfolio but also one that I would like to add to at the right price rits are one of the easiest ways for retail investors to gain exposure to the real estate market you don't have to worry about locking up thousands for many years by investing in private real estate this doesn't go to say that investing in private real estate is not a good route because there's pros and cons to both ways and when it comes to prologis you are gaining a portfolio of warehouse and Industrial properties the company currently has a market cap of $104 billion making it the largest re on the market market and it reached a 52- we high price of $132 and change today at current prices the pullback from that high is now reaching more than 15% REITs for the past 5 years have been the worst performing sector but if you go back all the way to the 1970s you will see the data shows that the Reit sector has long outperformed the S&P 500 from a total return perspective you get share price appreciation and usually strong dividends to go with it and investing in real estate is yet another way to diversify your portfolio and when it comes to REITs REITs are interest rate sensitive so for the past 5 years we have had Skyhigh inflation which has led to the fastest increase in interest rates that we have seen in modern history so for an interest rate sensitive sector like REITs this did not bode well but what is on the horizon lower interest rates which is going to have REITs breathing a sigh of relief and we'll start to see which we've already started to see a little bit of investors creeping back into the sector right now shares of PL trade at a priced a ffo of 24. 2 times which is well below their 5 and 10e average of 27 times indicating an intriguing entry point however I want to see those prices come down to around $100 which I believe would be another good entry point for me to buy more shares REITs as I mentioned are also known for paying some nice size dividend yields but rarely do they offer much in terms of dividend growth plld though bucks that Trend as they have not only a dividend yield of 3.
