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MarketBeat: Week in Review 10/26 – 10/30

Saturday, October 31, 2020 | MarketBeat Staff
MarketBeat: Week in Review 10/26 – 10/30

Despite strong earnings and a blowout GDP number, the market was in full tank mode this week. Who could blame investors for being in such a foul mood? Positive tests for the novel coronavirus continue to climb in the vast majority of states, and with it hospitalizations. This is leading to concerns that the United States will follow Europe’s lead and impose targeted lockdowns. The answer to that question will depend on the result of next week’s election. However that outcome remains cloudy. Will we even have a winner at this time next week? Even generally positive earnings by the tech giants couldn’t lift investors’ spirits. But now is not the time to let emotion cloud your judgment because there are a lot of really good stocks and sectors to look consider. And the MarketBeat team of writers continues to point you to 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 was certainly reading the room correctly this week as he focused on three attractive dividend stocks in the healthcare sector. Not only are dividend stocks a great way to increase your total return, but the healthcare sector will continue to be one of the most attractive for investors in 2021. Sechler was also helping conservative investors by looking at value stocks. With all the talk of a bubble, it’s nice to know that there are some stocks that are still undervalued. And Sechler gave readers three such stocks to consider. Turning his attention to a growth stock that is more speculative, Sechler gave an analysis of the Big Data company Palantir (NYSE:PLTR). The company is not without its risk, but a growing revenue picture may mean that profitability and a much higher share price may be coming soon.

Articles by Jea Yu

Jea Yu writes that investors who held on to Lululemon (NASDAQ:LULU) while the stock price dropped 25%. LULU stock is moving higher based on analysts’ upgrades. The company is proving that it is growing its e-commerce business and that is leading to speculation that the company will have a strong holiday season. Yu was also looking at LMP Automotive (NASDAQ:LMPX). LMP has a unique, hybrid business model in which it buys pre-owned automobiles and rents them to customers via a subscription program. While it’s too early to tell if this model will work, the company has turned positive for the year after dropping at the onset of the pandemic. Yu was also looking at Himax Technologies (NASDAQ:HIMX). The nondescript semiconductor company has over 2,900 patents and 500 pending patents, but it still sells at a discount to its peers making it a potential buy-on-the-dip stock.

Articles by Thomas Hughes

Thomas Hughes, like fellow MarketBeat writer Sean Sechler, had his eyes on dividend stocks. In the case of Hughes, he likes PetMed Express (NASDAQ:PETS). Hughes likes the stock because it combines a long-standing dividend with a business model that is based on two strong trends: e-commerce and pet care. Hughes was also looking at Juniper Networks (NYSE:JNPR) is another steady dividend player that is not going to excite growth investors, but will allow value investors to rest easily. And resting easy will be a key consideration for investors. Because Hughes makes a compelling case that the S&P 500 may be headed to 2,600.

Articles by Sam Quirke

At this time last year, few investors would have been willing to buy into Boeing (NYSE:BA). However, Sam Quirke analyzes BA stock and believes that with 2021 shaping up to be a better year for the airlines, it may be a buy for risk-tolerant investors.  Another stock that investors should look to scoop up is Activision Blizzard (NASDAQ:ATVI). Despite a strong earnings report which included strong future guidance, the stock is dropping and makes an attractive buy-on-the-dip candidate. One stock that is certainly not dropping, but still is worth investors’ attention is Advanced Micro Devices (NASDAQ:AMD). Quirke writes how the company is not resting on its considerable laurels as it announced its intention to purchase its competitor Xilinx (NASDAQ:XLNX).           

Articles by Nick Vasco

Nick Vasco was continuing the theme of looking for quality dividend stocks. Vasco’s attention was focused on Dividend King, Colgate-Palmolive (NYSE:CL). The company has been a steady, if not unspectacular, performer during the pandemic. But even though the company may still have some headwinds, investors love the stock for its reliable dividend which it has increased for over 50 years. Vasco was also looking at Spotify (NYSE:SPOT). After a disappointing second quarter, Vasco foresees a rise in advertising revenue as spurring a rising stock price. A stock that carries a bit more risk is Texas Roadhouse (NASDAQ:TXRH). The restaurant chain looks to be a buy after posting strong earnings. Even with virus cases on the rise, the chain has developed a digital sales model that should allow it to avoid the crash that it endured at the onset of the pandemic.

Articles by Steve Anderson

Steve Anderson was revisiting FireEye (NASDAQ:FEYE). The cybersecurity company has lagged behind other stocks in this fast-growing sector. However, that appears to be changing. Anderson writes that on the back of strong Q3 earnings, the stock is starting to reward the patience of its investors.  Anderson was also looking at Amgen (NASDAQ:AMGN). The biotech company is proof that there are quality stocks to buy in the sector that are not a play on a vaccine or therapeutic treatment for the coronavirus. However, the company has entered into an agreement with Eli Lilly (NYSE:LLY) to manufacture Lilly’s Covid-19 antibody treatment.

8 Stocks That Robinhood Investors Got Right

The online investing app Robinhood has been a clear pandemic winner. As more Americans were forced to work from home, many made the decision to begin testing their investing skills by trading stocks. Robinhood appeals to millennial and/or novice investors for several reasons. First, the app makes it fun. You might say it “gamefies” stock trading. With commission-free trades, investors have an incentive to trade frequently. And many users of the app do just that.

The second reason is that it allows investors to buy partial (or fractional) shares. Although Robinhood is often associated with penny stocks, the app lets investors buy shares of “pricey” stocks like Tesla (NASDAQ:TSLA) without having to pay for a full share right away.

And data shows that Robinhood investors have a healthier risk appetite than other investors. And that appetite has increased since the start of the pandemic. This lines up to the time when investors had more time on their hands.

With that said, many Robinhood investors have been, quite frankly, using the app to engage in a legal form of gambling. I say this because trying to dive quickly in and out of the market in an attempt to capture a profit may work. But historically, it’s a path to ruin.

However there are two sides to every story. And the same is true of Robinhood investors. There are many examples of where these investors have gotten it right. In this presentation, we’ll show you eight examples of stocks that the market and Robinhood investors have gotten exactly right.

View the "8 Stocks That Robinhood Investors Got Right".

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