MarketBeat: Week in Review 6/13 – 6/17

The market sell-off accelerated this week as the Federal Reserve announced a 75 basis point hike to the Fed funds rate. Remarks by Fed chairman Jerome Powell are causing investors to reprice the market as a series of rate hikes through the end of 2022 is a near certainty. And this comes at a time when the Fed continues to shrink its balance sheet. Investors will barely have time to catch their breath before the next round of corporate earnings is released. Right now, the markets are pricing in disappointing earnings so any “less bad” news may be viewed favorably. Still, it’s likely to be a choppy summer and retail investors will need to proceed with caution. Our mission at MarketBeat is to guide you to the opportunities that exist no matter what is happening in the market. Here are some of the stocks our analysts were looking at this week.

Articles by Jea Yu

It’s never a good thing when corporate executives say their company’s fortunes are not based on the present economy but on the future. Nevertheless, as Jea Yu points out, investing in Plug Power (NASDAQ:PLUG) requires belief in a hydrogen energy future that is not yet here. As Yu notes PLUG stock is down over 40% for the year which may create a buying opportunity. Yu was also looking at Wix.com (NASDAQ:WIX) the website development platform developer. WIX stock is down 64% more than twice that of the Nasdaq index. But the company continues to show strength in its subscription model and stands to benefit as the internet continues to grow. No such problems exist for the energy exploration and drilling company, Helmerich and Payne (NYSE:HP). The stock is up 112% in 2022 and as Yu explains the company will likely benefit from improvement in spot contracts due to ongoing supply-demand constraints.

Articles by Thomas Hughes

Thomas Hughes had good news and bad news for investors. First, the bad news. As Hughes wrote in this article, this earnings season is likely to be a bad one. And if earnings come in worse than expected, the S&P 500 is likely to give up all its post-Covid gains. The good news, as Hughes notes, is that many analysts are forecasting a recovery in the second half of the year. For now, Hughes recommends that investors pay attention to these three stocks that recently received upgrades. And for those that think retail is dead, Hughes advises them to think again at least as it relates to these two stocks that analysts are buying.

Articles by Sam Quirke

Anyone who follows the markets knows that hardly a day goes by that Tesla (NASDAQ:TSLA) founder and CEO Elon Musk isn’t making headlines. But that hasn’t been helping TSLA stock which is down 37% in 2022 and nearly 50% from its all-time high. The company also recently announced layoffs that coincided with Musk’s musings about the state of the economy.  However, Quirke builds a case that investors with a high risk tolerance and a long-term outlook may find that buying the stock at these levels may turn out to be a steal in a few years.

Articles by Matthew North

It can be difficult to invest in certain sectors right now, but it’s never too early to start building a watch list. With that in mInd, Matthew North points out that investors may want to look at NortonLifeLock (NASDAQ:NLOK). The stock continues to be under heavy selling pressure. But as North points out, improving fundamentals and a likely merger mean a turnaround could be in the company’s future. North was also looking at Palo Alto Networks (NASDAQ:PANW) as one for your watch list. This is another tech stock that has positive catalysts but is facing selling pressure despite posting solid results in its latest earnings report. And for investors looking for a tech stock that is a buy, North points them to A10 Networks (NYSE:ATEN), the 5G infrastructure company. ATEN stock is up more than 30% for the year and is forecasting continued top and bottom line growth that suggests the run is not over.

Commodities are a broad category that covers agricultural products like wheat, corn, and soybeans. It also includes oil and derivative products such as gasoline, natural gas, and diesel fuel.

However, investing in commodities also covers precious metals such as gold and silver as well as base metals like copper and aluminum. And more recently, this sector includes items like lithium that will be needed in many of the emerging sectors of our economy.

Commodities trading is frequently done by trading contracts on the futures market. And it's not for faint-of-heart investors. Prices are volatile and can change quickly due to macroeconomic events.

However, at certain times, particularly in times of high inflation, commodities outperform the broader market. A practical alternative for individual investors looking to profit from commodities is to invest in exchange-traded funds (ETFs). These funds give investors exposure to this sector while reducing the risk that comes from investing in any single commodity.

Here are seven ETFs that you can buy to help build a hedge against inflation.