When Should Investors Buy a Stock?

Investors often struggle to determine when to buy a stock, especially if it's been falling for several months. According to Zacks Market Edge, McDonald's Corp. (MCD) is one such example. The fast-food giant has seen its shares plummet by 22% year-to-date and are currently at multi-year lows due to concerns over consumer growth.

While McDonald's may not be a 'cheap' stock on a price-to-earnings basis, with a forward P/E of 19.4, it also isn't a growth stock. Sales are expected to rise by just 4.8% this year, and earnings growth is anticipated at 5.6%. This scenario can leave investors frozen, unsure about whether to buy the stock.

Another example is Sandisk Corp. (SNDK), an AI Revolution stock that soared in June 2026 but then gave back some of its gains into July. However, it's now rallying and has seen a 13.8% increase over the last month, year-to-date its shares are still up 665%. Despite not regaining its previous high, Sandisk is cheap on a P/E basis with a forward P/E of just 8.9.

NVIDIA Corp. (NVDA) is also discussed in the podcast. As the leader in the AI Revolution trade, its shares have risen by 903% over the last five years and added another 21% in 2026. While NVIDIA's valuations are more attractive now than they were a year ago, with a forward P/E of 24, it's still not considered a value stock.