Concerns over rising inflation and Treasury yields have resulted in a price retreat by some fundamentally sound stocks. Hologic (NASDAQ:HOLX) and TDK (TTDKY (OTC:TTDKY)) are down more than 25% from their recent highs, but we think both are capable of a rebound in the near term. Read on.As a function of the accelerating economic recovery, concerns over rising inflation and Treasury yields are causing a price retreat by some stocks that have strong fundamentals.
Although inflation concerns might put pressure on the overall stock market in the near term, the odds of these stocks recovering are high compared to those that don’t possess strong financials and are overvalued.
Hologic, Inc. (HOLX) and TDK Corporation (TTDKY) are currently trading way below their recent highs due to the broader market dynamics, but we think they could be destined for solid gains in the near future based on their strong financials and growth prospects.