In a short trading week, the markets continued to digest mostly positive earnings reports. Virus cases are on the decline by any metric. Vaccinations are on the rise. And the Biden administration continues to suggest that they are prepared to fully open the stimulus spigots to keep the economy going. This of course leads one to wonder if it’s more important for individuals to have stimulus checks or the stimulus that comes from a job.
One thing seems clear. The economy is closer to reopening. When that happens, it is expected to provide a bullish catalyst for stocks beyond their current levels. To help you identify and act on the trends that are moving the market, the MarketBeat staff will continue to bring you insight into stocks of interest. Here’s a sampling of what they saw this week.
Articles by Sean Sechler
One of the biggest stories early in 2021 is the explosive debut of Bumble (NASDAQ:BMBL). BMBL stock rallied 63% on its first day of trading. And as Sean Sechler writes, BMBL is one of several dating stocks that investors should pay attention to as an increasing number of people look for love online. Keeping on the love theme, Sechler turned his attention to stocks that hedge funds love. The funds recently released their 13F reports and Sechler highlights three stocks that institutional investors think have a large upside. Sechler was also giving investors insight into how to play the surging price of copper. Often seen as a harbinger of an improving economy, Sean gave readers three copper stocks to play this emerging trend.
Articles by Jea Yu
The electric vehicle (EV) space continues to be red hot, but Jea Yu was advising investors that despite its stock more than doubling in the past month, investors may want to take some profit with Arcimoto (NASDAQ:FUV). The company is nearing production on its three-wheel EVs for the first responder, delivery services, and recreational markets. It’s an exciting segment, but that means analysts will start to look for traditional growth metrics. Yu was also looking at another hot sector, the cloud. In this case, Yu analyzes the buy-on-the-dip case for Teradata (NYSE:TDC). Teradata provides database and analytics-related software, products, and services for its clients. The company is seeing growth in its Public Cloud which is causing analysts to improve their forecasts. From two sectors that are booming to one that is attempting a comeback, Yu was looking at Coty (NYSE:COTY). The beauty products and fragrance maker was hard hit at the onset of the pandemic. However, analysts foresee an uptick in demand as the world returns to normal. And Coty has taken steps to be well positioned on Amazon (NASDAQ:AMZN) when that occurs.
Articles by Thomas Hughes
Just when you thought the market might have learned its lesson, Thomas Hughes writes that Workhorse (NASDAQ:WKHS) may be a target for a short squeeze. However, as Hughes reminds investors shorting a stock need not be a pump-and-dump scheme. In the case of WKHS, because it is already in production, the stock may be overpriced. In this case a little squeeze may right size the stock for a stronger leg higher. Hughes was also looking at Shopify (NYSE:SHOP) which has been surging in the e-commerce boom. And, as Hughes writes, SHOP stock looks like it has much more left in the tank. However, Shopify is a $1,000 stock. For investors looking for something a lot less expensive, but with a lot of value, Hughes suggested looking at four penny stocks in the cannabis sector.
Articles by Nick Vasco
Nick Vasco explained the bullish sentiment for Twilio (NYSE:TWLO). The pandemic has made digital communication an imperative both internally and externally. That fits into the wheelhouse of Twilio, the DevOps company that helps developers add text, call, email and other functions into their apps. For investors willing to play a hunch, Vasco suggests giving Philip Morris (NYSE:PM) a closer look. The tobacco giant recently outlined its plan to manage in a world without cigarettes. But with the economy reopening, there is a strong likelihood that smokers will find comfort in daily routines, many which involved social smoking. The drop in housing applications this week may have seemed to contradict Vasco’s bullish outlook for Toll Brothers (NYSE:TOL). But Vasco is taking the long view with mortgage rates staying near all-time lows and the likelihood that millennial investors will be converging on the suburbs.
Articles by Sam Quirke
What a world we live in when a stock that trades for over $2,000 per share is considered a bargain, but that is the case with Google (NASDAQ:GOOG) writes Sam Quirke. For example, while some tech stocks are trading at P/E’s in the triple (and even quadruple) digits, Google’s P/E ratio remains safely in the mid-30’s. Quirke was also writing about the Seattle-based online real estate marketplace, Zillow (NASDAQ:ZG). Analysts are impressed with the company’s performance during the pandemic and project it to have a strong upside as the housing market remains strong. Quirke was also providing a bullish analysis for HubStop (NYSE:HUBS) which continues to soar to all-time highs after an impressive earnings report.
Articles by Steve Anderson
The limitations of renewable energy sources such as wind and solar were on full display this week. However, Steve Anderson suggests that you don’t overlook the long-term outlook for SolarEdge Technologies (NASDAQ:SEDG). Solar is a key pillar of the Biden energy program and it could push the company’s products into mainstream markets that will drive future growth. This has been a strong year for commodities, so it’s no surprise says Anderson that John Deere (NYSE:DE) posted another strong quarter. And with demand for its equipment likely to stay strong, now is a great time to buy the stock. Anderson was also analyzing the recent earnings report from Bloomin’ Brands (NASDAQ:BLMN). The company had “less bad” earnings that reflect about the best any restaurant chain can hope for. Still, hanging on counts for something as investors eye a surge in restaurant stocks as the country reopens.
7 Food Stocks That Are Leading Through Innovation
It might be easy to dismiss food stocks with so many restaurants still struggling to recover from the global pandemic. But food stocks are a broad category that includes not only the way food is consumed but the way it’s made. In 2020, sustainability and a focus on climate change continue to be important trends in this sector.
Another trend to look at is the ability of companies to deliver food to consumers. It’s not surprising that some of the biggest winners in the pandemic are the restaurants that already had a strong digital presence. Consumers' ability to have a contactless experience from start to finish has been a catalyst for some stocks.
Not surprisingly, those are also the trends that create an opportunity for investors looking to dabble in food stocks. As you look to resetting your portfolio for 2021, it may be time to take a bite out of some of these stocks.
With that in mind, we’ve put together this special presentation that identifies seven food stocks that you should consider adding to your portfolio. In addition to gaining exposure to this sector, some of these stocks present the opportunity for industry-beating gains.
View the "7 Food Stocks That Are Leading Through Innovation".