MarketBeat: Week in Review 5/23 – 5/27

The markets are on track to break an eight-week losing streak. All the major indexes flipped from red to green in the pre-market on news that the Personal Consumption Expenditures (PCE) Price Index came in as expected. The concern was that a hot number would cause stocks to roll over in advance of a long holiday weekend. It’s too early to say if the 4.9% year-over-year number indicates that inflation has peaked. But for now, investors appear to be enjoying a brief respite from the relentless sell-off. Next week will be a short trading week that will be capped off by the June jobs report. You can count on the MarketBeat team to keep you on top of the stocks and stories that are moving the market. Here are some of the stocks they were looking at this week.

Articles by Jea Yu

Jea Yu was looking at several undervalued stocks that investors may want to add to their shopping list. In the case of Under Armour (NYSE:UAA), Yu believes the company continues to have some near-term challenges including the company’s search for a new CEO. However, with the stock near its pandemic low, Yu believes there may be an opportunity for investors who are willing to buy for the long term. Yu also likes the outlook for Texas Roadhouse (NASDAQ:TXRH) which is down about 21% in 2022. The casual dining chain is managing to pass along some of its elevated costs, and it is experiencing growing demand for in-restaurant dining. Turning his attention to the semiconductor sector, Yu views Indie Semiconductor (NASDAQ:INDI) as a potential buy based on its niche appeal to next-generation Autotech semiconductor and software solutions as well as a backlog of over $2.6 billion.

Articles by Thomas Hughes

Investors are always looking to find stocks to buy while their prices have come down. However, Thomas Hughes advises investors to hold off on buying the dip on these two stocks.  Hughes also tried to help investors make sense of what’s going on in the retail sector. With that in mind, Hughes recommended one retail stock to buy and one to sell in this current market environment. Hughes also identified a trend in Palo Alto Networks (NASDAQ:PANW) that may put a cap on the stock’s growth in the short term. Specifically, analysts continue to lower their price targets on the popular cybersecurity company which continues to trade at over 65X its earnings. That means that even though the stock is bottoming, PANW stock may not be a compelling bargain.

Articles by Sam Quirke

Zoom Video Communications (NASDAQ:ZM) was one of the big winners during the pandemic. But oh how the mighty have fallen. The stock is down nearly 85% from its pandemic high. However, Sam Quirke points out that ZM stock has recently moved higher suggesting that the stock may have found a bottom.  As Quirke points out, in the company’s latest earnings report, the company raised its guidance and its dividend. Quirke was also looking at the bullish earnings report from Ralph Lauren (NYSE:RL). This earnings season is showing that luxury retailers may have an upper hand as affluent consumers are still showing a willingness to spend. This could make RL stock, which is down nearly 40% since February, an opportunistic buy

Articles by Chris Markoch

This week many dollar store chains reported strong earnings and two of the most recognizable names, Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR) had a big rally. Chris Markoch looked at the earnings reports for both companies and offered an opinion on which stock may be the better buy in the short term. Markoch was also bullish on Williams-Sonoma (NYSE:WSM). The home furnishings retailer has growing free cash flow and an attractive valuation that makes it an appealing target for investors with it trading near 52-week lows. On a more bearish note, Markoch felt that investors may want to stay away from Best Buy (NYSE:BBY). There are several things to like about the stock, but there are also questions about how high it can move in the short term.