Don't Wait for a Market Crash: These 2 Top Stocks Are on Sale
It's been a difficult six months for General Electric (NYSE: GE) and Stanley Black & Decker (NYSE: SWK). Both stocks are in negative territory over the period and have notably underperformed the S&P 500 index, which is up more than 11%. That said, the dip in both stocks is creating a good buying opportunity; here's why.
There are probably two reasons for the stock's underperformance in recent months. The first is the negative impact on air travel from the resurgence of COVID-19 cases and the emergence of new variants. This hurts GE because GE Aviation is the company's most significant earnings and cash flow generator. Two-thirds of commercial airplane flights are on GE or GE joint venture engines, and the revenue from servicing engines in use is the key to the segment's profitability. So any slowdown in flight departures due to travel restrictions is terrible news for GE.
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Source Fool.com
