Though the flattening of the yield curve, uncertainty over tax reform plan and falling oil prices have been making investors jittery lately, the overall sentiment has been hugely positive. This is especially true given that the global economy has picked up momentum with every major economy witnessing growth in almost a decade. 

According to the Organization for Economic Cooperation and Development, all 45 countries are on track to grow this year and expected to continue the momentum in 2018. Per International Monetary Fund (IMF), global growth is expected to be 3.6% this year and 3.7% in the next versus 3.2% last year. This would mark the fastest growth since 2010.

Another major catalyst to the bull run is strong corporate earnings. The S&P 500 companies recorded two consecutive quarters of double-digit earnings growth for the first time since 2011 and is on pace for 6.3% growth in the third quarter. Additionally, total Q3 earnings are on track to reach a new all-time quarterly record, surpassing the previous record reached in the preceding quarters.

Further, the small-cap index S&P 600 is on track to turn positive in Q3 with total earnings expected to be up 5% from the same period last year on 5.6% higher revenues. This would follow persistent earnings decline for the small-cap index. S&P 600 earnings growth was negative in three of the last four quarters.

Apart from these, the combination of other factors such as rounds of upbeat economic data and low interest rate policies from central banks around the world are adding to the strength. All these suggest that the second-largest bull market still has legs.

Against such a bullish backdrop, beaten down prices reflect a good entry point for investors. Below, we have highlighted five solid picks from both the ETF and the stock world that were in red over the past week but have a Zacks Rank #1(Strong Buy) or 2 (Buy). The top ranks suggest their outperformance in the coming months.