Investors are looking through the market's recent wreckage to pick up stocks that might have been beaten down, giving them an interesting entry point. That's especially true as the Standard & Poor's 500 slips another 0.7 percent Friday after falling 2 percent Thursday.
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Be careful, though, stocks that are falling can keep falling, despite the positive feelings of analysts.
Take the example of Yum Brands. The stock has been punished 14.5 percent in July as investors worry about the company's growth and issues in less-developed nations. Even so, New Constructs, which compares stock prices to the present value of their expected cash flows, calls the stock "attractive." The average analyst rating on the stock is "outperform." S&P Capital IQ rates the stock a 3, or "hold," which isn't a resounding endorsement, but not a warning sign, either.