2 stocks to buy for the FTSE recovery!

FTSE stocks suffered in recent weeks as fears spread from the banking sector. But now investor concerns seem to have largely passed and a recovery, despite some bumps, may be on the cards.

So, there are two stocks that have fallen in recent weeks but could rally in the coming months.

Standard Chartered

Standard Chartered (LSE:STAN) has been one of the stocks hardest hit by the banking sell-off in recent weeks. The UK-based bank – which gets around 90% of its profits from Asia, Africa and the Middle East – fell 15% in a month.

It is a casualty of concerns about unrealized bond losses and broader fears about the health of the financial system as interest rates rise. However, these concerns have largely been put to rest, despite continued appetite from the central bank to tackle inflation.

I’m not saying investors should consider the impact of unrealized bond losses, but it should be put into context. Big, well-regulated banks like Standard Chartered have more bond holdings than the ailing Silicon Valley Bank.

There are several reasons why I recently added Standard Chartered to my portfolio. First, I believe that the potential takeover provides a backstop against downward pressure on the stock price.

Second, the bank offers good value, currently trading at a price-to-earnings ratio of just 7.9. Private banking company Kangberg has made Standard Chartered the top choice in the sector, recording a faster earnings per share of 30% year-on-year, before HSBC in 20%.

Finally, there is a school of thought that larger banks, like Standard Chartered, may benefit as capital seeks safety.

Vistry Group

I think it’s time to reconsider the housing market, even with rising rates. yesterday, Vistry Group (LSE:VTY) rose on better-than-expected full-year profits. The group said market conditions are improving.

Vistry said it saw better sales trends in the first 11 weeks of the current fiscal year. The annual average personal sales per site per week is currently at 0.54, but the weekly rate has risen to 0.62 in the last four weeks. Customer confidence has improved since Liz Truss’ disastrous budget, he added.

We know the financial situation is not ideal for housebuilders, and this is not helped by the current Bank of England rate at 4.25%. But I believe we are at, or close to, terminal rates. Things have to get better.

Vistry is also driven by the affordable housing, or ‘partnership’, side of the business. This is an important part of Vistry and is usually more resilient. In theory, this business area should continue to grow in the future with the government not having affordable housing targets.

With the share price down 8% in a month and 30% in a year, the dividend payout is now 7.4%.