The benchmark stock indices have registered a solid performance this week, with the S&P 500 and the DJIA hitting all-time highs. And because the bullish market sentiment is expected to prevail on the back of a solid third-quarter earnings season, we think fundamentally sound and low-priced stocks Banco Santander (MC:SAN) and VEON (NASDAQ:VEON) could be good additions to one’s portfolio now. Read on.The upbeat corporate earnings season so far is driving bullish trends in the U.S. stock market. The benchmark indices have delivered a stellar performance this week. The S&P 500 notched its seventh straight win on October 21, marking a record close at 4,549.78. The index also hit a 4,551.44 intraday high. The Dow Jones Industrial Average rose to its all-time high on October 20, although it retreated slightly to close at 35,603.08 in its last trading session.
Solid corporate earnings reports have eased investors’ worries about inflation and a possible decline in Federal Reserve’s bond-buying. “There are no signs of widespread erosions of margins at the moment,” said Jim Reid, head of thematic research at Deutsche Bank (DE:DBKGn). Moreover, Jobless claims declined to a new pandemic low of 290,000 for the week ended October 16.
Given the bullish trends, we think quality stocks, Banco Santander, S.A. (SAN) and VEON Ltd. (VEON), which are trading under $5, could be solid bets now.