3 Stocks to Hide in if the Market Rolls Over Again

Market Overview - Market volatility has increased due to Warren Buffett's share sales, the unwinding of Japan's Yen carry trade, and disappointing U.S. jobs data, raising concerns for investors about stock selection for the remainder of the year and into 2025 [1] - Recession fears have resurfaced, overshadowing the previous excitement surrounding the AI boom, with investors showing less enthusiasm for top AI companies compared to earlier in the summer [2] AI Sector - Many analysts view the decline in AI stocks, some losing over 50% of their value, as potential buying opportunities for resilient investors, although these stocks may continue to contribute to market volatility as September approaches [3] - Dell Technologies (DELL) has seen a significant drop of over 50% in its stock value recently, but a recent bounce of 8% suggests a potential recovery, making it an attractive option for those seeking AI-driven growth at a reasonable price [4][5] - Dell's workforce reductions appear to be aligned with an AI-first strategy, which may enhance its return on AI investments and support further growth in the sector [6] - DELL stock is currently trading at a trailing P/E ratio of 18.9, indicating it is a bargain among stocks to consider [7] Fast-Food Industry - McDonald's (MCD) has experienced a tumultuous trading period over the past 18 months, with shares falling into correction territory multiple times due to inflation and a perceived loss of value among consumers [8] - Recently, MCD stock has gained nearly 10% from its July lows, driven by a renewed focus on value from management [9] - The company is introducing new products, such as The Big Arch burger, and is currently trading at a trailing P/E ratio of 23.5, along with a dividend yield of 2.48%, making it a compelling value proposition [10] Yum! Brands - Yum! Brands (YUM), which includes KFC, Taco Bell, and Pizza Hut, has also struggled in recent years but may be poised for a breakout as value and menu deflation become key themes [11] - YUM stock has risen nearly 8% since late July, facing resistance at $140 per share, but potential sales catalysts from value menu offerings could drive further growth [12] - KFC is expanding its $5 value meal, which may attract customers from competitors like McDonald's, positioning YUM as a strong buy at a trailing P/E of 25.1 amid anticipated market volatility [13]