When to Buy a Stock? Zacks Market Edge Breaks Down Three Scenarios

A recent episode of Zacks Market Edge discussed when investors should buy a stock. Host and Zacks Stock Strategist, Tracey Ryniec, went solo to address this question. She highlighted three scenarios: buying stocks with downward momentum, investing in momentum stocks, and cyclical and value stocks.

Firstly, McDonald's (MCD) shares have fallen 22% year-to-date, reaching multi-year lows due to consumer and growth concerns. Despite the decline, McDonald's is not considered a cheap stock on a price-to-earnings basis, with a forward P/E of 19.4.

Secondly, Sandisk (SNDK) is a momentum stock that soared in June but gave back some gains by the end of July. However, it has regained its momentum and is up 13.8% over the last month. Year-to-date, Sandisk shares are still up 665%. It trades with a forward P/E of just 8.9.

Thirdly, NVIDIA (NVDA) is a leader in the AI Revolution trade, with shares up 903% over the last five years and an additional 21% in 2026. While its valuations are more attractive than before, it still trades with a forward P/E of 24.