Cliff Casualties: 2 Stocks That Were Oversold
Fiscal cliff fears have sent many investors running for the exits. But in their haste, were any stocks oversold?
The Fast Money traders think at least 2 stocks were unfairly punished.
Admittedly, defense sector stocks could take a hit next year; unless a fiscal cliff deal is reached the defense budget will be slashed by more than $50 billion.
But Link, who is director of research at TheStreet, thinks the risk is worth the reward in this stock. "The company beat on earnings, revenues and margins," she said. Link says if the budget cuts are as bad as feared, she think management is strong enough to navigate - "the vast bulk of Boeing's clients are not governments, they're commercial aerospace players," she reminded. "And if we get a benign outcome it's cheap."
Although consumer discretionary stocks are very vulnerable, top trader Joe Terranova, chief market strategist for Virtus, thinks TJX is a buy.
"The company is growing at double digits and its stealing market share," he said, "the stock has already pulled back so sharply," that even if we go over the cliff, he thinks it shouldn't fall a lot further.
Posted by CNBC's Lee Brodie
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CNBC.com with wires.