The best way to pick stocks is using screener of undervalued stocks. Unfortunately, screener access costs around 400USD per year. We will try to recreate the tools for free.
This article describes a decent method for choosing large cap stocks, and here mid cap are addressed. And these stocks are probably too risky right now.
Following low quarterly revenues Jim Cramer’s Top Stock Picks: DIS BWLD BOOT GOOGL SHAK. Warren Buffet points out to cheap prices of XOM, KO, IBM, PG. The stocks that are definitely not love by the street have some nice potential upside.
The selection makes sense also due to high CAPE. I quote:
When the market is fair valued or overvalued, buy high-quality companies such as those in the Buffett-Munger Screener.
When the market is undervalued, buy low-risk beaten-down companies like those in the Ben Graham Net-Net Screener. Buy a basket of them and be diversified.
If market is way over valued, stay in cash. You may consider hedging or short. [E.g. timing or market-neutral position]
Again, here you can see the Sector Shiller PE, it shows you which sectors are the cheapest. Here you can see Shiller P/E of individual stocks.