Two traders pick two underperforming stocks to buy now

On Monday, in a recent interview on CNBC's "Trading Nation," Chad Morganlander and Ari Wald said that the stocks in the energy and the travel sector did not perform that well due to the spike in the delta variant of the coronavirus. According to them, some of the stocks in the respective sectors were among the worst performers in July. However, they are optimistic that this August, tables could turn, and stocks in the red last month could turn green in August.

Baxter stock as a rebound play

Notable S&P 500 members like Las Vegas Sands Corp. (NYSE: LVS), Diamondback Energy Inc (NASDAQ: FANG), and Carnival Corp (NYSE: CCL) dropped down 20%, 18%, and 18%, respectively. Additionally, Baxter International Inc (NYSE: BAX) stock is reportedly down close to 6% since the beginning of July.

Should investors buy the weakness in any of these names? According to Washington Crossing Advisors co-founder and senior portfolio manager, one name in particular sticks out. Instead of buying into "low quality names", Baxter should be bought after falling around 6% in July and 10% in the quarter. He explained:

Digital Turbine is a safe bet

Oppenheimer’s head of technical analysis Ari Wald prefers buying another stock amid recent weakness: software company Digital Turbine Inc. (NASDAQ: APPS). Also speaking on "Trading Nation," Wald said Digital Turbine stands out from other beaten up stocks because of the "macro trends that support it." He said: