It was all about the jobs report this week. The 266,000 jobs created was far below estimates (and confusingly so), but the market is shrugging it off. Or maybe the market is suspecting that a disappointing jobs report will be the impetus for yet more stimulus. Certainly it will give the Fed no reason to changing monetary policy. Meanwhile earnings season rolls on. For the most part companies are managing to exceed expectations. That’s no small feat considering that expectations were already high when compared to a pandemic-skewed Q1 in 2020. It’s further evidence that the market is confusing, but it’s also the place to be. You can count on the MarketBeat team of writers to look for 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
Now that some of the most anticipated earnings reports have been delivered, Sean Sechler reminded investors that May has a reputation for giving investors key clues to how the market will perform for the year. If you’re not looking to sell in May and go away, Sechler offers his opinion on the top three stocks investors can buy in May. This is also a time when active traders should begin to look at obscure companies. In spite of some of the profit-taking happening with larger companies, Sechler offered three lesser-known stocks that could make for profitable trading. And whether you agree with his investing philosophy or not, it’s hard to question Warren Buffett’s track record. With that in mind, Sechler offered readers three Warren Buffett stocks to buy now.
Articles by Jea Yu
Jea Yu was offering something for a variety of different investors. For investors looking to ride the hot hand, Yu pointed towards Lumber Liquidators (NYSE:LL). The housing market remains strong despite high lumber costs and that is good news for the hard-surface flooring retailer. That being said, the stock may be overpriced and Yu gives readers several target prices to use as opportunistic entry points. For those wanting to buy into a comeback story, Yu suggests Casper Sleep (NASDAQ:CSPR). This is a company that was beset by supply chain issues and the stock suffered as a result. But the direct-to-consumer model should allow for a solid recovery for CSPR stock. More speculative investors may want to take a look at LiveXLive Media (NASDAQ:LIVX). The digital media company stock has been volatile, but Yu believes LIVX stock is an opportunity for seasoned speculators and nimble traders.
Articles by Thomas Hughes
One of the common sentiments that companies face is “that’s nice, but we expected more.” As Thomas Hughes points out that’s a problem that Freshpet (NASDAQ:FRPT) dealt with in 2020. Despite robust demand (as measured by empty store shelves), the company was struggling to keep up. Now that they can, analysts have mixed feelings about a proper valuation. However Hughes still views FRPT as a buy-the-dip candidate. One company that is having no problems impressing the market is Zillow Group (NASDAQ:Z) which is climbing higher based on strong demand on the buy-side and sell-side. It’s an example of the shift to digitization that is captivating the market. For income investors, Hughes suggests looking at Kellogg (NYSE:K). The company was a pandemic winner, but was repositioning its brands prior to the pandemic which gives it strong potential for growth along with solid dividend income.
Articles by Nick Vasco
Carvana (NYSE:CVNA) has been stuck in neutral during 2021. But Nick Vasco believes that may be about to change. The company’s business model of buying a used car via a vending machine is catching on. But the company has some work to do to turn a profit. Still Vasco sees the CVNA stock as an opportunistic buy. Another opportunistic buy-on-the-dip candidate is Pinterest (NYSE:PINS). The social media stock is dropping largely because management suggested that it might have slower active user growth. But Vasco points out two reasons why those concerns appear to be unfounded. And with fintech companies on the mind of many investors, Vasco took a look at Square (NYSE:SQ) prior to earnings. With the strength of mobile payments as well as Bitcoin (CCC:BTC), Square looks to be ready to break out of a tight range.
Articles by Sam Quirke
A little expert advice is never a bad thing. Sam Quirke was pointing investors to three stocks that Wells Fargo (NYSE:WFC) recently put on its “Signature Picks” list. The company’s list includes 35 stocks with an average expected return of 15% and with a general focus on those with existing momentum. Quirke was also looking at Ralph Lauren (NYSE:RL). The high-fashion retailer was recently named to the UBS Top Buys list as a reopening-focused stock that may still have room to run. One stock that has had no issues running is Activision Blizzard (NASDAQ:ATVI). The video game developer was a pandemic winner. And according to one analyst, the company has “best-in-class intellectual property” which will continue to propel the stock even as the economy reopens.
Articles by Kate Stalter
You may have noticed that some of your friends and family members, and maybe even you have turned to freelance and “gig work” during the pandemic. It’s a key part of the future of work and Kate Stalter points out that Upwork (NASDAQ:UPWK) has been a beneficiary as reflected in their earnings report. However, the stock has been dropping which Stalter points out is generating buying interest. Stalter also gave investors four sporting goods stocks that look to be a buying opportunity as the economy reopens. And speaking of the reopening, Hilton (NYSE:HLT) shares are dropping after the company delivered disappointing earnings that showed the recovery may not be as robust as analysts were expecting.
Featured Article: Understanding Options Trading7 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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