This week saw the beginning of the earnings season. But the market is still laser-focused on the process (or lack thereof) of a stimulus package. That seems like an issue that will have to wait until after the November election. What is becoming increasingly clear is that the only question that remains is how large the package will be (and who gets to take credit for it). Late in the week, big tech blundered its way into the conversation. At least one social media giant is coming under congressional scrutiny for potential election interference regarding the removal of certain material. That will be a situation to watch next week. In the meantime, the MarketBeat team of writers continues to tune out the noise and help you find the stocks and sectors that are worth your attention. Here’s a look at some of the articles our staff picked to help make you a better investor.
Articles by Sean Sechler
Sean Sechler turned his attention on stocks under $50 and found three companies that investors should consider for their potential to be long-term winners. Sechler also was looking at one of the red-hot sectors of 2020. Fisker Inc. is one of the latest electric vehicle (EV) companies to go public via a special purpose acquisition company (SPAC). In this case, the SPAC is Spartan Energy Acquisition (NASDAQ:SPAQ). Fisker is taking a new approach to carving out their niche. And while it will be 2022 before the company brings a product to market, Spartan Energy stock may be ready to move much higher as the merger closes. And there’s no question that the growing pet sector is benefiting from the move to e-commerce. And Sechler gave investors three reasons to put the online pet supplier Chewy (NYSE:CHWY) on their buy list.
Articles by Jea Yu
Jea Yu was also looking at the EV sector. In this case, Yu likes Li Auto (NASDAQ:LI). The company focuses on extended-range electric vehicles (EREVs) that help to shelter it a bit from the current issues surrounding battery range. Yu makes the case that Li Auto is a solid growth play on the Chinese EV market and autonomous driving. Yu was also looking at an under-the-radar play on the demand for semiconductors. Semiconductor equipment maker Kulicke and Soffa Industries (NASDAQ: KLIC) is a savvy way for investors to take advantage of the demand for semiconductors without buying the rather frothy semiconductor stocks. And turning his attention to stocks that benefited from the pandemic, Yu writes that it looks like it’s time for investors to take some profits on The Container Store (NYSE:TCS).
Articles by Thomas Hughes
In the aftermath of President Trump’s Covid-19 diagnosis, therapeutic treatments for the novel coronavirus have moved to center stage. Thomas Hughes was taking a look at Sorrento (NASDAQ:SRNE). This is a company that is only in the early stages of developing a therapeutic. However, if its candidate is successful, this stock has a lot of growth potential. Hughes was also guiding readers to three dividend-paying stocks that have seen their share prices plummeting for years. But these companies have been steadily strengthening their balance sheets and could be good buys for growth and value investors alike. Hughes went on to take a closer look at one of those bargain basement stocks, General Electric (NYSE:GE). The company has been in a long-term turnaround cycle that appears to be about to pay off.
Articles by Sam Quirke
Sam Quirke had his eyes on growth stocks and pointed investors in the direction of three of 2020’s best performers. Zoom Communications (NASDAQ:ZM) has been an undisputed pandemic winner. But the stock continues to show there are more reasons to buy then there are to sell. Another company that Quirke was eyeing is the cloud computing stock, Twilio (NYSE:TWLO). Twilio has been a good example of a company that is rising due to strong fundamentals. For that reason, and due to a recent acquisition, Quirke sees Twilio as being a strong buy. Rounding out his trifecta of growth stocks, Quirke wrote about Infosys (NYSE:INFY). The digital consulting and IT outsourcing company is another stock that is showing strong fundamentals that should continue to draw the attention of analysts and investors.
Articles by Nick Vasco
Nick Vasco was writing about NXP Semiconductors (NASDAQ:NXPI). This semiconductor company is benefiting from a surge in new car sales as auto manufacturers continue to come back from the also pandemic-induced lockdowns in March. Vasco was also writing about Harley-Davidson (NYSE:HOG). The motorcycle manufacturer has had a rough time of it lately, largely due to declining demand for motorcycles in general. However, the company’s cost-cutting measures seem to finally be paying off for the stock. And on the “trade the news” front, Vasco cautioned investors from reading too much into the halt in Johnson & Johnson’s (NYSE:JNJ) vaccine trial. The company’s stock dipped after it reported earnings which presents a good buying opportunity.
Other Editor’s Picks
Here are some other articles that point to stocks and sectors that are worth the attention of investors. Walgreens Boots Alliance (NASDAQ:WBA) is a leader in a crowded space. Investors benefit from the company’s combination of solid growth and impressive dividend yield. Another company that is thriving in a crowded sector is Progressive Insurance (NYSE:PGR). Progressive is best known for its series of tongue-in-cheek commercials, but investors who take the time to dig into the insurance company’s fundamentals will see a company that should be taken seriously. And if investors are looking to growing sectors, Intuitive Surgical (NASDAQ:ISRG) is a solid play on the future of the health care sector. Intuitive Surgical is the undisputed leader in the emerging field of robotic-assisted surgery. And as more hospitals become familiar with the benefits of using robotic surgery for general procedures, the company’s global expansion is likely.
7 Stocks That Will Help You Forget About the Fed
Normally when the Federal Reserve (i.e. the Fed) makes an announcement, the market reacts predictably. That’s due, in large part, to the nature of what the Fed normally announces. Will interest rates go up, down, or remain unchanged? And for their part, the markets have a pretty good idea what the Fed will do before they do it.
But the Fed’s announcement of August 26 was a little different. They talked briefly about interest rates (they’re staying really low for a long time). But they were more concerned about inflation. Well, the Fed is always concerned about inflation, but this time they really mean it. Basic economics says that low-interest rates should spur inflation.
However, the market has been defying conventional wisdom and the Fed is not getting the inflation they want. So the Fed has basically said that they’re letting inflation go rogue. If it goes above their target 2% rate, so be it. The Fed is done trying to hit a target.
At first, the markets cheered the news. Not only was the Fed not taking away the punch bowl, but they were also going to keep the low rate liquidity going for a long time!
But after a little while to digest things, investors are realizing they have to be grown-ups about this. And now investors are considering how to rebalance their portfolios for the remainder of 2020.
I don’t know about them, but if I were you I would target companies that have a high free cash flow (FCF). Whether it’s your personal finances or in evaluating a stock, cash flow is your friend.
When a corporation has high FCF, they have more strong growth in good markets and more flexibility during when the economy is weaker.
As institutional investors come back into the market, it’s time for you to reposition your portfolio for whatever comes next.
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