When to Buy: Scenarios Where Investors Get Stuck
This week's Zacks Market Edge podcast focused on when investors should buy a stock. Host Tracey Ryniec went solo to discuss this topic, answering a listener's question about whether to go all in or dollar cost average.
The podcast highlighted three scenarios where investors may struggle with buying: stocks with downward momentum and new multi-year lows, momentum stocks that are too hot to handle, and cyclical and value stocks. The first scenario was McDonald's Corp., which has fallen 22% year-to-date and is at multi-year lows due to consumer concerns and growth worries.
McDonald's trades with a forward P/E of 19.4, making it not a 'cheap' stock on that basis. Its sales are expected to rise just 4.8% this year, with earnings growth of 5.6%. This leaves investors frozen, unsure when to buy the stock.
The second scenario was Sandisk Corp., an AI Revolution stock that soared in June 2026 but gave back some gains by July. It has regained its momentum and is up 13.8% over the last month. Year-to-date, it's still up 665%. Sandisk trades with a forward P/E of just 8.9, making it genuinely cheap on this basis.
The third scenario was NVIDIA Corp., which is leading the AI Revolution trade and has added another 21% in 2026. Its shares have risen 903% over the last five years, and it's one of the Magnificent 7 stocks and part of the exclusive 'trillion-dollar' market cap club.