Stock Market February Strategy: "Buy Rather Than Wait"

Semiconductors, Automobiles, and Bio Blue-Chip Stocks with Large Price Drops Become More Attractive

[Asia Economy Reporter Hwang Yoon-joo] The securities industry has recommended focusing on buying stocks with significant price drops in earnings as the investment strategy for February. They cited the resumption of short selling as a variable from a short-term perspective.

Yoo Seung-min, a researcher at Samsung Securities, stated, "Strategically, holding is better than panic selling, and strategic alternative bottom buying is preferable to simply waiting," adding, "In the current index range, future market corrections are expected to be more of a time adjustment rather than a price adjustment."

He identified the top priorities for portfolio restructuring as ▲ low PEG ▲ strong earnings momentum ▲ high dividends (shareholder return rate). Yoo said, "Considering the leadership of the rebound during the market normalization process, it is urgent to distinguish the quality of earnings stocks that have experienced excessive price drops," and "Based on stock price fluctuations since the beginning of the year and earnings momentum from Q4 2021 and the entire 2022, sectors such as media, bio (CMO), semiconductors, transportation, distribution, and hardware stand out."

He added, "The easing of market volatility and the transition to an upward trend will be tasks following the resolution of Russia-related geopolitical risks."

Korea Asset Investment Securities forecasted the KOSPI this year as 'low-high-low.' They expect inflation to peak in the first quarter, with economic indicators recovering from the second quarter. The third quarter is anticipated to see a correction due to the burden of rising interest rates, while the fourth quarter is expected to enter an economic expansion phase with growth stocks rising again.

Korea Asset Investment Securities evaluated, "If the index falls below 2600, price attractiveness will emerge in high-quality semiconductor, automobile, and bio stocks," adding, "Growth stocks still have a high PBR (price-to-book ratio), which is a burden."

This content was produced with the assistance of AI translation services.