In the current market climate, it can be tempting for investors to sell stocks that are losing value to minimize losses. However, this strategy is often counterproductive, as it can result in missing out on a rebound when the market recovers. In addition, panic selling often leads to emotional decision-making, which can compound losses.
For these reasons, it is generally advisable for investors to resist the urge to sell during periods of market volatility. While there may be some short-term pain, doing so can help to avoid larger losses in the long run.
Panic selling is a common issue for investors. It can be due to a market crash or when the stock keeps dropping lower and lower. But, here are five stocks that you should stop panic selling:
| NOK | Nokia | $4.94 |
| UAA | Under Amour | $9 |
| PAYO | Payoneer | $6.22 |
| GOGL | Golden Ocean Group | $10.16 |
| NYCB | New York Community Bancorp | $10.52 |
Nokia (NOK)
Nokia’s (NYSE:NOK) legacy as a global phone company dates back to 1865. It is now evolving into a 5G giant. Nokia’s shares are down over 18% this year. But you should buck this panic selling trend and hold onto your investment for several reasons.
Nokia has recently signed several new agreements, which will help take it forward into the future and offer stockholders great returns.
It recently inked a deal with Bharti Airtel. For Nokia, this is another feather in its cap because the rollout of the 5G radio access network represents roughly 45% of India’s cellular market share.
Additionally, Nokia recently signed an agreement with AT&T’s (NYSE:T) Mexican subsidiary and a five-year deal with Ice. These 5G agreements build on the Finnish company’s global presence.
Under the agreement with AT&T, Nokia will provide the infrastructure to deploy AT&T’s 5G network. Not only that, but it is also offering 3G and 4G services using the same hardware. Nokia also offers the upgrade path from 3G or 4G to 5G.
Meanwhile, it has signaled the completion of a long-strategized turnaround by reintroducing a dividend, launching a share buyback program, and hiking its long-term targets.
The Nokia story is one of perseverance, ingenuity and success. The company has struggled through multiple crisis-like periods in its history but has bounced back from financial troubles each time.
Under Armour (UAA)
Under Armour (NYSE:UAA) has seen strong growth in recent years due to the increased demand for fashionable and functional clothes. It is perfect for those looking to make a healthy investment in sports apparel.
According to at least one research report, the fitness clothing market is predicted to grow over the next decade, reaching more than $221.3 billion by 2026. In addition, in the year thus far, monthly retail sales of clothing stores are growing at a healthy rate versus the year-ago period. But on a company level, things get a bit more complicated.
The sports equipment company’s recently released guidance is surprisingly conservative. EPS is expected to come in between 61 cents and 67 cents, less than the prior outlook. Despite issuing a muted outlook, CFO David Bergman remains optimistic that the second half of the year will improve as supply chain issues lessen.
In addition, Under Armour sold its fitness application MyFitnessPal to focus on what it does best. The $345 million deal makes sense as activities requiring these apps were curtailed by Covid-19-related restrictions, and other top brands also exited their digital possessions earlier this year.
Despite its impressive track record, the company’s stock price is facing some headwinds. The company’s recent earnings show that management is doing an admirable job; however, there are a few difficult quarters ahead. Nonetheless, the brand remains a force in the fitness world.
Payoneer (PAYO)
Payoneer (NASDAQ:PAYO) is vital for businesses that need to move money around quickly to keep their operations running smoothly. Its stock will likely become even more valuable as it continues to grow. For these reasons, Payoneer is a great investment for those looking to profit from the growth of a rapidly expanding company.
Payoneer has partnerships with many global companies like Amazon (NASDAQ:AMZN) and Upwork (NASDAQ:UPWK). These companies use Payoneer to send out international payments. These partnerships will likely drive Payoneer’s growth into the future.
Payoneer has been brave enough to enter riskier markets and is now one of the most popular payment services for international transactions. Its size is increasing rapidly in light of the ongoing freelancing trend, as evidenced by its latest financial records. The fast growth in this sector helped it provide better-than-expected results for Q2.
Payoneer’s earnings per share were 1 cent per share on revenue of approximately $148.2 million, with both numbers handily topping analyst estimates. It also raised its full-year guidance and now expects to earn between $30 million and $35 million in EBITDA and make $580 million to $590 million in revenue.
Altogether, Payoneer is a leading player in the growing fintech industry, and it is well-positioned for continued growth in the future.
Golden Ocean Group (GOGL)
Golden Ocean Group (NASDAQ:GOGL) is a leading operator in the dry shipping industry. The company has a modern fleet of vessels and a strong presence on the major trade routes. It has consistently grown its earnings and dividends over the past decade, and the stock price has followed.
Golden Ocean Group is geographically diverse, thereby mitigating risk. It has headquarters in Bermuda and operates in North America, Europe, Asia and Australia. Golden Ocean Group is a good investment for long-term shareholders looking for exposure to the dry shipping industry.
Global freight rates notched exceptional highs in 2021, thus providing newly found opportunities to new companies and organizations. GOGL also did well during this environment, with revenues doubling to $1.2 billion in fiscal 2021, complemented by a $527 million profit.
However, now things have taken a turn. Golden Ocean Group has suffered tremendous damage to the bottom line. However, management has given positive indicators regarding the future; it expects better performance for this quarter and the next half year, with freight rates expected to remain robust. From this viewpoint, Golden Ocean has acquired greater charter coverage.
The market has been volatile recently, but big investors still have opportunities to make outsized returns. One way of doing this is by adding small-cap stocks into your portfolio now that the macroeconomic environment is worsening. Undervalued firms like Golden Ocean Group are great investments during times of panic selling because they provide the potential for outsized returns once things get back to normal.
New York Community Bancorp (NYCB)
New York Community Bancorp (NYSE:NYCB) is one of the largest banks in America and has over $63.1 billion in assets under management as of June. This bank traces its origins to 1859 and has 237 branches dotted across the country.
NYCB is bucking the broader market downturn this year by posting better performance, beating consensus estimates by a healthy margin in Q2.
Loans and deposits continued their positive growth trends this quarter, with total loan volumes increasing 15% annually to $48.5 billion due in part to an increase on the multi-family side combined with a rebound within specialty finance lending.
The company’s banking as a service initiative has been very successful, with annualized deposits increasing by 35%. This increase was driven largely due to growth in loan-related deposit accounts leading to an 8% overall increase in net interest income.
The major issue for investors is the price. NYCB stock has increased by almost 11% in the last month. However, the Federal Reserve still has several more interest rate increases this year. This is good news for banks like NYCB as they expect higher profits due to the upcoming interest rate increases. Therefore, there is still money to be made on this stock.
On the publication date, Faizan Farooque 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.