Markets Rebound; Investors Wonder If It's Time To Buy

This week has been a rollercoaster ride for investors as markets dipped to new lows on Monday, but appeared to be on the road to recovery by Wednesday. The mass exodus from Wall Street has opened up what some investors are considering a buying opportunity, but some analysts warn that traders should proceed with caution.

How Cheap Is Cheap?

The S&P 500 has fallen 7.7 percent since August 17. However, some analysts say investors shouldn't let the decline fool them; stocks may not be as cheap as they perceive. Based on metrics like yields and earnings, Chief Market Strategist at JonesTrading Michael O'Rourke told Reuters that he believes stocks are not particularly attractive at the moment, just less expensive than they've been.

Energy Stocks

Shares of energy firms have taken a beating this year as a global supply glut has been compounded by economic slowdowns in some of the world's largest consumers. Over the past year, Exxon Mobil Corporation XOM has lost 29 percent and Chevron Corporation CVX has fallen 42 percent as worries continue to mount.

Related Link: Credit Suisse Remains 'On Guard' In U.S. Stocks Despite Attractive Valuations

For long-term investors, now could be a great time to buy, as oil prices will most likely recover in the next three to five years. However, most analysts agree that the commodity isn't likely to recover any time soon.

Media

Another industry that has been hammered recently has been media. While market forces have been responsible for some of that slide, companies like Walt Disney Co DIS, Viacom Inc VIAB and Time Warner Inc TWX have also been under pressure from expansion in TV streaming. Young viewers are more likely to cut the cord and turn to online streaming options rather than traditional cable subscriptions, making the future for traditional content providers uncertain.

Valuations for those companies may appear low, but many believe the future for the media industry is too uncertain to call those companies bargain buys. Instead, most analysts appear to be taking a "wait and see" approach to the media sector.