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MarketBeat
MarketBeat
Business
Jea Yu

Market Overreaction: 2 Stocks to Buy on the Way Down

Every earnings season has its share of overreactions, as stocks can overshoot on the upside and the downside. The fear of missing out (FOMO) can trigger panic and a leapfrog mentality where emotions drive extensive overreactions. Investors can develop FOMO when they believe a stock is going higher, and they don't want to miss the ride. However, investors can also develop FOMO when they worry their stock is going much lower and rush for the exits to try and limit losses. Many times, these types of overreactions create opportunities for investors who have been patiently waiting for a better entry. Here are two stocks that may present buying opportunities on their way down for bullish investors.

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