This week the nation ushered in a new president and so far the market likes what it sees. That is a flood of liquidity in the form of stimulus combined with low interest rates. It’s not sustainable. And it’s not the kind of economic growth that anybody wants. But it should be good enough to help keep companies in certain sectors delivering “less bad” results. And less bad is the new good.
President Biden is making quick work at dismantling some of the executive orders signed by former President Trump. What that may mean for the markets is not clear. However there is a sense that tax policy won’t undergo a major change until later this year, at the earliest. That’s another sign of optimism for investors. Next week earnings season will be in full swing, and the MarketBeat staff will continue to bring you insight on the stocks that are moving the market.
Articles by Sean Sechler
Sean Sechler was suggesting that long-term investors take a look at material stocks. While not the sexiest sector to consider, Sechler noted that the sector is primed for growth due and recommended three stocks that should benefit from strong demand and an attractive valuation. Healthcare was another sector that was capturing Sechler’s attention and he gave readers three healthcare stocks that are building on their momentum from 2020. And if Chinese stocks are still on your radar, Sechler suggests that NetEase (NASDAQ:NTES) is a worthy buy candidate. The company is a leader in the online and mobile gaming sector.
Articles by Jea Yu
The housing market continues to heat up and so is the way that homebuyers look for a home. That’s the narrative behind Opendoor Technologies (NASDAQ:OPEN). As Jea Yu writes, Opendoor is similar to Zillow (NASDAQ:ZW)but it’s in the business of actively buying and flipping homes, rather than just connecting prospective buyers and sellers. It’s an innovative model that allows Opendoor to collect revenue from both sides of a housing transaction. Bitcoin is soaring again and Jea Yu was writing about the Grayscale Bitcoin Trust (OTCMKTS:GBTC). This is an unofficial exchange-traded fund (ETF) that invests in bitcoins through derivatives. The stock is not for everyone, but as Yu writes it’s for those who want simplicity in their exposure to bitcoin without the need for a digital wallet or the fees and spreads on an exchange. And Yu writes that bitcoin is on the mind of investors in Advanced Micro Devices (NASDAQ:AMD). The massive demand for the company’s GPUs was not likely factored into its forward guidance which could create an upside surprise when the company reports earnings.
Articles by Thomas Hughes
Thomas Hughes was writing about three stocks that are proving that sometimes less bad isn’t good enough for some investors. Specifically, Hughes was advising investors to hold on to two transport stocks. The first is J.B. Hunt (NASDAQ:JBHT) that saw its shares falling after a mixed earnings report. However provided that the economy keeps on its recovery path, Hughes notes that demand for truckers should remain high – a positive sign for JBHT stock. A similar story was at play for CSX Corporation (NASDAQ;CSX). Like J.B. Hunt the company’s earnings were a mixed bag. While investors might have a little wait ahead of them, CSX stock will reward them with a dividend for their patience. Hughes was also looking at Citrix Systems (NASDAQ:CTXS). The SaaS company has a solid outlook that is not being manifest in the stock.
Articles by Nick Vasco
Many investors may not be looking at dating app stocks to be a growth play, but you would be wrong advises Nick Vasco. Match Group (NASDAQ:MTCH). However the stock is performing nicely and could receive a larger boost from its addition of Hinge which targets older millennials. In love and in investing sometimes it takes multiple swings to find the right match. Vasco notes that investors are hoping that’s the case for Petco (NASDAQ:WOOF) that is hoping the strength of the pet sector will make the third time a charm as the company recently began publicly trading for the third time in the last 20 years. And Vasco was looking at the curious case of Boston Beer (NYSE:SAM) that saw its share price fall on positive vaccine news. It turns out that analysts are concerned a return to live events may depress sales of the company’s seltzer brand, Truly. Vasco suggests investors may want to wait for the company’s earnings report in February, but this may just be a case of overreaction.
Articles by Sam Quirke
Electric vehicle stocks remain a red-hot sector. However Sam Quirke was looking at a couple of establishment automakers to remind investors that you can teach an old dog new tricks. General Motors (NYSE:GM) stock continues its 2021 surge on news that the company is partnering with Microsoft (NASDAQ:MSFT) via its autonomous vehicles company, Cruze. Quirk was also bullish on Ford (NYSE:F) who is finally getting a return on the billions of dollars it has invested to electrify its fleet. Tech stocks continue to lead the post-inauguration rally and Quirke was looking at Facebook (NASDAQ:FB). The social media giant has been a laggard among the FAANG stocks but the stock is looking better after an analyst upgrade.
Articles by Chris Markoch
At the start of the week, Netflix (NASDAQ:NFLX) delighted investors with an earnings report that showed it had crossed the 200 million subscriber mark. However, as Chris Markoch points out, it may be time for you to look at the streaming giant more like an SaaS stock than a streaming stock. Markoch was also looking at the beleaguered United Airlines (NASDAQ:UAL). Contrarian investors have made a nice gain, but for the stock to go much higher it needs a lot of things to break right. And the big banks have reported earnings. But Markoch was advising value-oriented investors to consider giving Regions Financial (NYSE:RF) a closer look. The bank’s financials continue to improvejust as the economy may be getting to reopen.
Articles by Steve Anderson
Steve Anderson was looking at two sectors that are primed for growth in a Biden administration. Solar stocks are coming off one of their most promising years and that was on the mere hint of a policy shift towards clean energy. SolarEdge (NASDAQ:SEDG) was one of the beneficiaries of that rally, and the stock just got an upgrade from Morgan Stanley (NYSE:MS) that is pushing shares higher. Healthcare is another sector that is likely to do well in a Biden administration. That will be good news for a stock like United Health (NYSE:UNH) which is doing its part with an earnings report that beat on both the top and bottom lines. And Anderson was another of our writers that was looking at Bitcoin. In this case, he was writing about the nation’s fifth-largest holder of bitcoin on the planet, MicroStrategy (NASDAQ:MSTR). You can read Anderson’s article here, but suffice it to say it was a rough week for the firm.
7 Hotel Stocks Just Waiting For the Vaccine
Like any group of stocks related to travel and tourism, hotel stocks saw a steep drop in share prices in 2020. The leisure and hospitality sector that once had 15 million employees has lost 4 million jobs since February.
Many major cities will be feeling the ripple effects of the Covid-19 pandemic for years. However, there is ample evidence that shows the pandemic may be coming to an end. The number of new cases is dropping. The number of those getting vaccinated is rising. And even in the cities with the most restrictive mitigation measures, the slow process of reopening is beginning.
All of this can’t come fast enough for individuals who rely on the travel and tourism industry for their livelihood. Hotel chains had at least some revenue coming in the door. And when earnings season concludes, the more budget-friendly hotel chains may realize revenue that is 75% of its 2019 numbers. But that is not enough to bring the hotels to anywhere near full employment. Particularly with hotels that have bars and restaurants that have remained closed or open at limited capacity.
Many economists are optimistic that travel may begin to look more normal by the summer of this year. And the global economy may deliver 6.4% GDP growth this year. With that in mind, the hotel chains with the best fundamentals and the broadest footprint will be in the best position as the economy reopens.
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