Brian Sozzi Discusses Recent Stock Market Plunge

Brian Sozzi of Wall Street Strategies is out with a morning note on the recent sharp drops in the equity markets, and has some thoughts on what to do as a result of the aftermath.

In the note Sozzi notes, "It almost feels like two hurricanes have swept through the markets in two weeks time, doesn't it? Last week, hurricane Growth Slowdown, a category three, tripped up those eager to buy the supposed bottom. This week, hurricane S&P made its landfall, bringing with it numerous knock on effects that are likely to take a while to clean up. Both of these hurricanes have left outright carnage in the usually fertile grounds of equities markets."

Sozzi goes on to say that there is the potential for opportunities in the consumer discretionary space. He is looking for stocks that are "ridiculously cheap." By that he means, "..the stock is trading at eye-popping discounts to intrinsic value and relative to peer comparables."

Some of the names that he mentions to have on your screen when the market starts to bottom are Aeropostale (NYSE: ARO), Guess (NYSE: GES), Ann Taylor (NYSE: ANN), La-Z-Boy (NYSE: LZB), and American Eagle Outfitters (NYSE: AEO). He mentions American Eagle, as the stock is now yielding around 4%, and a new CEO is likely to be announced by the end of the year.