Grab These 6 Solid Stocks At Bargain Prices

 | May 30, 2019 09:03PM ET

This is not a great time for the market.

As if trade war tensions weren’t enough, investors are now concerned that there’s a recession on the horizon. That’s because the yields on five-year bonds recently dropped below the two year maturities, a condition called yield inversion where fears of a weaker long-term outlook pull more money into short term bonds.

Luckily, experts are less pessimistic: “An inverted yield curve is often associated with the anticipation of a recession which may be why investors are nervous about it but I’m not convinced this is what’s going on,” says Craig Erlam of forex brokerage firm OANDA.

Fed officials consider the 3-month/10-year comparison to be more indicative of a recession and these rates remain far apart. Still, they are monitoring the situation and will take necessary tightening measures if required.

Interestingly enough, as companies and individuals fret over the impact of U.S. tariffs on prices, this is actually an offsetting factor as it has the effect of increasing consumption.

So let’s not pull ourselves down over the possibilities of some future negative outcome and look for opportunities in this market. And of those opportunities there are many:

Ring Energy, Inc. (NYSE:REI)

Based in Tulsa, U.S., Ring Energy, Inc. is engaged in the exploration and development of oil and gas primarily in Texas and Kansas.

Zacks Rank #1 (Strong Buy)

VGM Score B

Industry: Oil & Gas – E&P [Industry Rank 30, or top 12%]

Forward 12 months P/E 5.17X (industry 11.80X)

Last EPS surprise 280%

Current quarter EPS increase in last 4 weeks 42.37%

Current year EPS increase in last 4 weeks 52.97%