U.S. stock markets entered correction territory in late August, with the Dow Jones falling more than 14% from its yearly highs.
But instead of leaving the market, we looked for some of the best stocks to buy now that are trading at "discount prices."
While many investors were tempted to take their money to the sidelines, that is the wrong move. You see, if you run for the exits, you'll miss out on some sizable profits when markets inevitably rebound from the latest slump.
Instead, look at great stocks "on sale" right now. In fact, we recommend having a ready at all-time list of quality, must-have shares to pick up at "fire sale" prices during sell-offs.
Here are three of the best stocks to buy now at discounted prices…
Top Stocks to Buy Now No. 1: General Electric Co. (NYSE GE)
General Electric Co. (NYSE: GE) shares are trading near $24.70 and are down roughly 15% from April highs.
According to Money Morning Executive Editor Bill Patalon, this is an excellent opportunity for picking up shares in GE. One of the biggest reasons he recommends GE shares is the diversification of its products.
"GE is in several growth segments: Aircraft engines, medical-imaging equipment, power generation, water treatment and, as a great special 'kicker' – the 'Internet of Everything' (IoE)," Patalon said. "Demand in each of those sectors is only going to grow, so GE can take comfort in knowing there will be plenty of demand for its wares long term."
Another bullish sign for GE stock is insider buying. According to Patalon, that is the "single-biggest indicator that a stock is going to move higher."
In 2014, CEO Jeffrey Immelt bought an additional 40,000 shares of GE. That brought his total investment to more than $47 million worth of GE stock. And he wasn't the only one. Two other independent GE directors also scooped up 14,000 shares combined that year.
Corporate insiders sell their company's shares for many reasons, he explained, but buy for only one: "They see a chance to make money on their own stock."
Another key draw is GE's 3.7% dividend yield and commitment to increasing payouts.