MarketBeat: Week in Review 5/31 – 6/4

Saturday, June 5, 2021 | Chris Markoch
MarketBeat: Week in Review 5/31 – 6/4

A short trading week is ending on an upbeat note. The catalyst of the moment is a jobs report that came in not too hot and not too cold. For bullish investors, it means that the long-anticipated “V-shaped” recovery may be upon us. But it also means that the Fed is likely to refrain from taking measures to combat inflation. It’s a fair question to wonder if they should, but right now investors are in a buying mood. Like many of these reports, the devil is in the details and we’ll know more about what this report really means in another month or two. In the meantime, the MarketBeat team of writers will stay 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 points out that markets are historically less active in the summer. However, there are still buying opportunities to be had. Sechler was giving investors his picks as the top three stocks to buy in June. For more risk-tolerant investors, Sechler was taking a look at growth stocks, and not just any growth stocks, Sechler was writing about three of what he terms “monster growth stocks” that look to offer investors an intriguing buying opportunity. Also for risk-tolerant investors, Sechler was taking another look at Chinese stocks. This has been a complicated sector for investors and may remain complicated for some time. However, for investors willing to accept the risk, Sechler gives them three Chinese stocks that look ready to bounce off recent lows.

Articles by Jea Yu                                                                                              

As the economic recovery picks up steam, Jea Yu was reminding investors that it’s a good time to buy the dip in Disney (NYSE:DIS) stock. The company’s stock was punished when its recent earnings report growth in Disney+ subscribers failed to meet lofty expectations. However, with the company’s theme parks and cruise line reopening, Disney is a growth opportunity in the last half of 2021. Another buy the dip stock that Yu likes is Kohl’s (NYSE:KSS). The retailer’s stock sunk despite a double beat in its recent earnings report. Right now investors are evaluating retail performance to 2019 rather than 2020. But Yu points out that is likely an overcorrection that opportunistic investors can use to their advantage. One stock that has not been concerned about dips is Oracle (NASDAQ:ORCL) which has been on a steady climb to all-time highs. Nevertheless, Yu suggests that investors wait for a pullback to buy shares of ORCL at its current level.

Articles by Thomas Hughes

The global shortage in semiconductor chips is likely to last into 2022 and investors have come to realize that it affects many sectors. From IoT devices to electric vehicles (EVs) and gaming devices, the demand for chips will remain high. Thomas Hughes gives investors three semiconductor stocks that are poised to lead the market through this supply chain issue. Speaking of EVs, Hughes is pointing out to investors that there is a consolidation happening in the industry. And he gave readers three of the headlines driving this market with investable stock ideas to go along with them. Hughes was also looking at the discount retailer Big Lots (NYSE:BIG) and pointing out that value investors should not continue to overlook the opportunity to be had with BIG stock which remains a value at 11x times earnings.

Articles by Sam Quirke

When the story of 2021 is written, there will be a chapter or two on the meme stocks craze. And as Sam Quirke writes this week, the phenomenon may still have time to play as YOLO investors remain committed to these stocks. However, not all investors have an appetite for the risk that comes from the meme stocks. For those investors who are looking for income, Quirke picked out three stocks from the list of Dividend Kings. These are stocks that have increased their dividend every year for at least 50 consecutive years. Quirke was also looking at recovery stocks and pointed investors towards Boeing (NYSE:BA). The beleaguered aircraft manufacturer is a strong play on the recovery as demand for its aircraft should have a correlation with increased airline traffic. In fact, Quirke makes an argument that the stock could reach $300 making now a good time for opportunistic investors to buy.

Articles by Chris Markoch

Oil stocks have been making a recovery lately. That shouldn’t be a surprise. Renewable energy is an attractive investing opportunity. However by itself it is inadequate of meeting our current demand. Chris Markoch pointed investors to three integrated energy companies that were poised to generate revenue with fossil fuels now, and with renewables later. Markoch was also looking at the good and the bad from Smuckers (NYSE:SJM) earnings report. It seems that both bulls and bears have something to consider and with the stock looking overvalued, a hold may seem like the right play. On the other hand, Ollie’s Bargain Outlet (NASDAQ:OLLI) looks like a stock to stay away from. Although the company delivered a solid earnings report and has plans to open new stores in 2021, short interest remains high and will likely add volatility to OLLI stock in the short term.

Articles by Kate Stalter                                                                           

Sometimes bad things happen to good stocks. As Kate Stalter writes, that seems to be the situation surrounding DexCom (NASDAQ:DXCM). The manufacturer of glucose monitoring systems posted strong earnings but its stock is failing to move higher. At times like this, Stalter advises keeping DXCM stock on your watch list, but avoid jumping in while it’s in correction mode. However one stock that looks all dressed up and ready to move higher is Ulta Beauty (NASDAQ:ULTA). Part of this is due to the economy re-opening and consumers being excited for a return to face-to-face interaction. But Stalter also points out that the stock has made a pivot to an omnichannel model during the pandemic that is positioning it for further growth. Stalter also was writing about how Ford Motors (NYSE:F) long-term investment in electric vehicles is finally beginning to pay off.

 

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7 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.

View the "7 Hotel Stocks Just Waiting For the Vaccine".


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