This was a week when inflation was done being subtle. The data doesn’t lie. Inflation is here and the market doesn’t like it. The Dow Jones and S&P 500 Index were each down about 3% and the Nasdaq dropped about 5%. However all of the indexes were coming off record highs and they all remain firmly positive for 2021. Plus, the markets broke a three-day skid as investors went shopping for value over growth. And speaking of being direct, Elon Musk sent Bitcoin and other cryptocurrencies careening after calling the digital currency’s energy demands “insane.” It’s further evidence that the market is volatile and maybe a little overvalued. Earnings season rolls on next week and the MarketBeat team of writers will be on top of the stocks and the stories that are moving the market. Here’s a look at some of the stocks they analyzed this week.
Articles by Sean Sechler
Sean Sechler had something for every investor this week. For growth investors who are attracted to technology stocks, Sechler presented three tech stocks that may be worth taking a closer look at while the Federal Reserve keeps interest rates low. As the market showed this week, some investors are deciding to move away from the volatility in growth stocks, and Sechler gave them three conservative dividend stocks which give investors the benefit of a dividend even if the stock price itself is going down. And Sechler was also reminding investors that the goal is to find profitable stocks wherever they can be found. With that in mind, Sechler suggested investors take a look at the materials sector, and specifically at Chemours (NYSE:CC). The company is a leading global provider of performance chemicals and will have a significant role to play in the economic recovery.
Articles by Jea Yu
Palantir (NYSE:PLTR) is a company that investors have loved to hate. As Jea Yu points out, it seems no matter how good the news is, investors are looking at the company’s lack of turning a profit and continue to sell shares. Nevertheless, Yu points out that risk-tolerant investors should consider buying PLTR stock as it may be forming a bottom. While Palantir is dropping on good news, Yu points out that Carnival Cruise Lines (NYSE:CCL) is dropping on more troublesome earnings. But as Yu writes, this is just setting the bar very low which makes it an attractive buy right now. Another stock that merits a closer look according to Yu is Dell Technologies (NASDAQ:DELL). The company was a pandemic winner as consumers needed to upgrade their hardware. But the company is also showing some strength as a recovery stock with its APEX as-a-service (AaaS) initiative.
Articles by Thomas Hughes
Thomas Hughes had gaming stocks on his mind. One stock that has been very volatile is Electronic Arts (NASDAQ:EA). As Hughes writes, the company delivered a mixed earnings report, but has bullish technical indicators that suggest investors should look for a solid entry point. And while much of the attention in the gaming sector has been on large cap stocks, Hughes writes about two small-cap stocks that offer double-digit growth with increasing leverage. Hughes was also revisiting Workhorse (NASDAQ:WKHS) stock. The company’s stock is down over 80% since February as the air has come out of the electric vehicle bubble. But that doesn’t mean that the company’s business model is flawed. In fact, Hughes points out that the company is delivering vehicles and is beginning to scale their operations. Whether now or later, Hughes recommends investors take a look at WKHS stock as a buy-the-dip candidate.
Articles by Nick Vasco
In the face of a global chip shortage, Advanced Micro Devices (NASDAQ:AMD) was one of the more eagerly anticipated earnings report. The chipmaker did its part delivering a strong beat on the top and bottom lines. However it seems investors are selling the news and Nick Vasco says it’s become overdone. Use this dip to add to, or start a position. Another company that is seeing its stock price go down after a good earnings report is Boston Beer (NYSE:SAM). It seems that some people are concerned that Americans may shift away from their pandemic drinking habits. But Vasco points out that the selloff looks overdone largely because it doesn’t account for the return of on-premise sales that have been missing during the pandemic. Vasco was sounding a more cautionary note however about DoorDash (NYSE:DASH) which will have to blow away estimates to continue justify its lofty valuation.
Articles by Sam Quirke
What goes up, and especially stocks that go up by 600%, can come down hard. That is the case with The Trading Desk (NASDAQ:TTD) which saw its share price get nearly cut in half since reaching a record high in December 2020. However, Sam Quirke says the stock is now trading at an RSI near 30 which is usually a fair indicator that there’s a buying opportunity. Another stock that has had its share price drop is Peloton (NASDAQ:PTON). It’s never good when you have to recall products due to safety concerns, but that’s the case with Peloton. Of course, investors didn’t need much reason to bail on a stock that seemed to be a pandemic fad. However, Quirke points out that there are analysts that agree the selloff is overdone. Aside from changing their fitness routines, Americans have been getting crafty during the pandemic. As Quirke says that’s been good news for Etsy (NASDAQ:ETSY). But this is another growth stock that has sharply reversed. And once again, Quirke says this is likely to be a case of overdone selling creating a buying opportunity.
Articles by Chris Markoch
Income investing is coming back into vogue as growth stocks continue to be volatile. And as Chris Markoch points out, if you’re looking for a strong dividend stock, you can’t do much better than Duke Energy (NYSE:DUK). Although a utility stock, Duke continues to produce shareholder value particularly through its rock solid dividend. Markoch was also giving an opinion on Disney (NYSE:DIS). While all eyes are likely to be on its Disney+ subscriber numbers, Markoch advises not to miss the larger story as all of Disney’s business units should begin to come online. One company that is in need of some good news is Inovio (NASDAQ:INO). Between questions about is CELLECTRA device and having its DNA-based vaccine candidate shoved aside, the stock has been falling. But with the U.S. government not ruling out working with the company in the future, INO stock may be worth holding onto for better days ahead.
Articles by Kate Stalter
Kate Stalter was writing about casino stocks and reminding investors that picking winners is not just a matter of chance. As it turns out, bigger may not be better. And in fact may bring expectations that are hard to meet. By contrast, Stalter explains that small gaming companies look like better bets at the moment. Like casinos, restaurants stand to be big winners as the economy reopens. Stalter points out that Bloomin’ Brands (NASDAQ:BLMN) has been posting sequential revenue gains throughout the pandemic which is one reason that the company is positioned well for growth in the recovery. And Stalter was also looking at cybersecurity stocks which are back in focus after the hack of the Colonial pipeline. Specifically, she turned her attention to Fortinet (NASDAQ:FTNT) which unlike many cybersecurity firms saw its revenue and earnings rise during the pandemic.
Featured Article: Conference Calls and Individual Investors7 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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