Wall Street can — and will — turn against stocks the Club holds in high regard. In some cases, our move is to run toward the wreckage, not away from it. “I want to be greedy on the downside. I want to be giving on the upside,” Jim Cramer said on Tuesday’s edition of the “Homestretch.” “When I see a stock getting tossed out that I love, that is fantastic.” Building on Jim’s philosophy, we analyzed the Club’s portfolio to identify beaten-down stocks that trade at reasonable valuations. The specific circumstances around each stock vary, and impact our ultimate view on whether now is the time to buy. But in general, stocks that meet the following criteria may be the kinds of opportunities to consider taking further action on: The stock trades at least 15% below its 52-week high, as of Tuesday’s closing price. We used the 15% cutoff because the market is in overbought territory, based on Jim’s trusted S & P 500 Short Range Oscillator . In those situations, we have a higher threshold for determining a stock is worth buying on weakness. The stock has a forward price-to-earnings multiple under 18, which puts its valuation below the S & P 500’s forward P/E, as of Tuesday’s close. We found 10 Club holdings that met both measures, including Caterpillar (CAT) and Halliburton (HAL). Here’s a breakdown of the full list — plus our thinking on which stocks look like buys Wednesday. BHC 1Y mountain Bausch Health’s 12-month stock chart. 52-week high date: April 5, 2022 Percent below 52-week high: 68.4% Forward P/E: 2.1 We continue to view troubled Bausch Health as a wait-and-see situation. Specifically, we’re awaiting fresh information on the pharmaceutical company’s legal fight over its patent for the drug Xifaxan. CTRA 1Y mountain Coterra’s stock performance over the past 12 months. 52-week high date: June 8, 2022 Percent below 52-week high: 31.35% Forward P/E: 9.2 We want to see another pullback in the energy sector before thinking about committing more cash to Coterra Energy (CTRA) and other holdings in the group, which had a nice little rally off mid-March lows. In fact, we used that recent strength to exit our Devon Energy (DVN) position Tuesday. We are content with staying patient in Coterra. Management’s decision earlier this year to make stock buybacks a higher priority means we should steadily own more of the company without needing to buy additional shares. PXD 1Y mountain Pioneer Natural Resources’ 12-month stock performance. 52-week high date: May 31, 2022 Percent below 52-week high: 26.94% Forward P/E: 9.5 Our view on Pioneer Natural Resources (PXD) is similar to Coterra. We made two purchases at lower levels in March, most recently on March 20 at around $185 per share. But now after back-to-back strong weeks for the stock, we see no reason to add to our position up here around $209 per share Wednesday. WFC 1Y mountain Wells Fargo’s stock performance over the past 12 months. 52-week high date: April 11, 2022 Percent below 52-week high:…
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