A late week surge higher for equities is hinting that a Santa Claus rally may be beginning. Investors have seemed to digest the effects of the omicron variant as well as the continuing effect of inflation. And after a sell-off, the market is starting to rally. Uncertainty and volatility will likely be continuing themes in 2022. But until there’s a clear signal to the contrary, investors would be wise to not fight the trend. The MarketBeat staff thanks you for trusting us for your stock analysis and wishes you a happy holiday season. After a restful holiday weekend, the MarketBeat team will be watching over the stocks and stories that will make news in the last week of 2021.
Articles by Sean Sechler
Healthcare has been one of the more stable sectors in 2021 and this is likely to continue well into the next decade. These stocks offer investors exposure to a defensive sector and many pay dividends. And Sean Sechler gave investors three healthcare stocks that look like standouts to buy now. Sechler was also reminding investors about the potential of a January effect for stocks. This seasonal phenomenon occurs when stocks get oversold in December and therefore are prone to a nice rally in the first month of the year. With that in mind, Sechler gave investors two picks for beaten-up stocks to buy now.
Articles by Jea Yu
Jea Yu was looking at three beleaguered stocks as potential value plays for opportunistic investors. First on Yu’s list was Sportsman’s Warehouse (NASDAQ:SPWH). The outdoor sporting goods retailer has seen its stock tumble when it announced it was no longer being acquired by The Great Outdoors. Some investors feel demand has waned, and for now there is no definitive reason why Great Outdoors walked away. But with the stock’s attractive price/earnings ratio, it may not matter. A second stock Yu was looking at was Disney (NYSE:DIS) that is finally looking like it may have found a bottom. For investors who have been patiently waiting on the stock to bottom out, you may finally have that opportunity to get in on DIS stock at a bargain price. The third beaten-down stock Yu was eyeing is Peloton (NASDAQ:PTON). As Yu notes, the stock has been a roller coaster ride for investors for several reasons. However, if investors hang onto the idea that the company is still showing growth, just slower growth, it may be a buying opportunity.
Articles by Thomas Hughes
Cintas (NASDAQ:CTAS) has been a solid reopening play as the company most known for outfitting many of America’s leading companies is benefiting from record employment. And as Thomas Hughes points out that was borne out in the company’s earnings report which saw the company post record revenue. Combined with a reliable dividend, CTAS stock looks like a solid buy. Hughes was also looking at Expensify (NASDAQ:EXFY) which recently emerged from its post-IPO quiet period. A good, but expected earnings report is the fuel for some analysts to lower their price targets. But as Hughes points out there’s no reason for bullish investors to walk away from the stock. Hughes was also looking at Calavo Growers (NASDAQ:CVGW) which has been struggling with the same issues befalling the market. However, the company’s Project Uno initiative is on track and may be a catalyst for the stock in 2022.
Articles by Sam Quirke
Tesla (NASDAQ:TSLA) continues to make news. Or maybe the better way to say it is that company founder and chief executive officer Elon Musk knows how to keep TSLA stock top of mind. Musk’s recent selling spree has sent shares lower. However as Sam Quirke notes this 30% drop may present investors with a buying opportunity if they are bullish on the electric vehicle sector in 2022.
Articles by Chris Markoch
Chris Markoch was also looking at two stocks that have had a rough go of it in 2021. In the case of AT&T (NYSE:T), Markoch reminds investors that the known is usually better than the unknown. And while there are still some unknowns regarding how existing shareholders will receive shares of the WarnerBros Discover (WBD) entity being created. Still, with more known about the deal, analysts are beginning to change their opinion. Markoch was also looking at Rite Aid (NYSE:RAD). And while Markoch believes the stock is still not a buy, he offered investors two drug stocks that appear to be better buys at this time.
Articles by Kate Stalter
It wouldn’t be a week if one or more writers on the MarketBeat team didn’t write about chip stocks. This week Kate Stalter was happy to pick up the baton. Although there are signs the global chip shortage is easing, demand will remain high. And that’s good news for many chip stocks, including the three large- cap chip stocks that Stalter offers for investor consideration. Stalter also advised readers to ensure they are giving their portfolios the proper hedges against the effects of inflation. Bank stocks are an excellent choice to fight inflation at this time, particularly the three regional bank stocks that are well-positioned for an inflationary environment. Stalter also offered analysis of Oracle (NASDAQ:ORCL) after the software giant announced it was acquiring Cerner (NASDAQ:CERN) in an all-cash transaction valued at approximately $28.3 billion in equity value.7 Stocks That are Ready For a Santa Claus Rally
With the end of the year approaching, many investors are looking to rebalance their portfolios. That typically means casting a critical eye at some of your strong performers and making a decision on whether they will move higher. And one thing that can dip the balance in favor of retaining a stock is the likelihood of a Santa Claus rally.
The technical definition of a Santa Claus rally is a rally that starts in the last few trading days of the year after the Christmas holiday. In recent years, however, that definition has been expanded to take into account a December rally. And with Black Friday beginning earlier and earlier and really not ending until after the holiday's end, this makes some sense.
So will there be a rally in 2021? I wouldn’t bet against it. The market continues to want to move higher and January is historically a strong month for stocks. With that said, we believe quality should still matter. Here are seven stocks that stand to benefit with or without a Santa Claus rally.View the "7 Stocks That are Ready For a Santa Claus Rally"