Two themes in the market this week were meme stocks and inflation. And yes, despite meme stocks being inflated well beyond any fundamental metric, these are two different themes. By the way, inflation rose sharply but the market seems not to care. In fact, at the moment, the rise in prices is seen to be transitory in nature. If that’s true, then investors should start seeing normalization ahead. In any case, the Federal Reserve is not going to make any policy adjustment so the stock market will remain the place for investors to look for growth. School may be ending for the kids, but the market is always teaching investors lessons even during the slower summer months. And the MarketBeat team of writers will stay on top of the stocks and stories that are moving the market. Here’s a look at some of the stocks they analyzed this week.
Articles by Sean Sechler
Following the money in investing terms can sometimes mean reallocating your portfolio to the sectors that are seeing the most activity. Sometimes these rotations are cyclical. As Sean Sechler points out that’s the case with oil services stocks. These are the companies that provide the equipment and technology that the oil and gas industry needs. Sechler gives investors three oil service companies whose stocks look like good buying opportunities. Another sector that investors are rotating to is infrastructure. The politicians are still haggling to find a compromise dollar figure. But it’s likely that there will be a bill and Sechler writes about three infrastructure stocks that should benefit. Finally, Sechler gave readers three international stocks to remind investors that sometimes diversification means looking beyond our own border. Although some of these stocks may not be familiar to American investors, they can deliver strong growth.
Articles by Thomas Hughes
Recent economic data is confirming that the post-pandemic recovery is underway. And as Thomas Hughes points out, the recovery is still gaining momentum. With that in mind, Hughes gives readers three recovery stocks for your watch list. However, as this week shows, the meme stock frenzy is not over. With that in mind, Hughes gave risk-tolerant traders three micro-cap stocks that may satisfy their appetite. Micro-cap stocks have a market capitalization between $50 million and $300 million. They carry a fair amount of risk, but they can also produce sizable gains. For investors looking for more of a sure thing, Hughes suggests investors look at Thor Industries (NYSE:THO). The manufacturer of recreational vehicles has been a pandemic winner. And as Hughes points out it appears that the company will benefit from strong demand which is likely to last into 2022.
Articles by Sam Quirke
Sam Quirke was looking at two stocks that many investors are watching carefully as the economy reopens. Many analysts felt that Delta Airlines (NYSE:DAL) would be a big winner as air traffic increased in a meaningful way. Yet Quirke points out that so far DAL stock still appears to be a strong buy as it stays below pre-pandemic levels. Quirke was also looking at the stock of Zoom Video (NASDAQ:ZM). Due to remote work and schools being conducted online, ZM stock flourished during the pandemic. However, timing is everything and if you bought shares of Zoom in October of 2020, you’re still waiting on the stock to recover. So what’s next for ZM stock? One hint may be that the stock price is climbing even as the economy recovers. That should give investors confidence that there is more growth ahead.
Articles by Chris Markoch
Meme stocks continue to dominate the investing news cycle. However, Chris Markoch writes that the desire to chase after a low-price stock may keep investors from looking at a stock like DocuSign (NASDAQ:DOCU). DocuSign is best known for being a leader in the e-signature movement. However, as Markoch points out, the company’s customers have made the shift from traditional to digital solutions and they’re not going back. Markoch offered investors United Natural Foods (NYSE:UNFI) as one for their watch lists. The company which is the primary wholesale grocery distributor for Whole Foods Market delivered a mixed earnings report which may reflect a trend away from consumers eating at home. And Markoch was also writing about Stitch Fix (NASDAQ:SFIX) which is looking fully valued after shooting up after a strong earnings report.
Articles by Kate Stalter
Sometimes it can be very easy to identify stocks that are likely to gain. It seems that every other day we’re being alerted to the importance of cybersecurity. And as Kate Stalter writes, the prevalence of ransomware attacks in addition to another strong earnings report are two reasons why CrowdStrike (NASDAQ:CRWD) is up 11% for the week. Stalter was also eyeing the financial technology (fintech) sector and specifically Upstart Holdings (NASDAQ:UPST). Since going public in December 2020, UPST stock is up 645% and is giving every indication it could have further to go although at this time, Stalter cautions investors that it might be best to keep the stock on your watch list until you see a confirmed buy signal. One stock that is unlikely to give a buy signal anytime soon is Campbell’s Soup (NYSE:CPB). As Stalter writes, a disappointing earnings report combined with declining virus cases may be signaling that consumers are moving away from some pandemic shopping habits.
Articles by Steve Anderson
One of the major news stories of the week came from the U.S. Food & Drug Administration (FDA). The agency granted approval for a potentially breakthrough drug for the treatment of Alzheimer’s disease. The drug, named aducanumab, is being manufactured by Biogen (NASDAQ:BIIB). And as Steve Anderson writes, the stock made a strong move higher on more than 17 times its normal volume. Another stock that is getting a boost in the last week is Peloton (NASDAQ:PTON). The pandemic darling has had a rough time sustaining its 2020 growth in the face of product recalls and continued shipping delays. But with positive coverage coming from an analyst, Anderson writes that it may be time to give PTON stock a closer look. Anderson was also pointing investors in the direction of Chico’s FAS (NYSE:CHS) which is continuing the positive momentum for retail stocks. Shares of the women’s apparel and accessories retailer are moving higher after a strong earnings report that addressed criticism from an activist investor.7 Retailers That Are Bucking the E-Commerce Trend
Once again it appears that the death of brick and mortar retail appears to be exaggerated. First-quarter earnings are showing that many retailers that rely on in-person traffic for a considerable chunk of their business are seeing a rebound in sales. And many are planning to open stores in 2021.
This isn’t to say that e-commerce is going away. In fact, a common feature for many of these stocks is that they either developed or enhanced their digital footprint during the pandemic.
This special presentation focuses on retailers that are planning to add to their brick-and-mortar footprint in 2021. And some are planning to do so by a substantial margin. Once again, this doesn’t signal a transformative shift in the overall trend, but it does mean that for the foreseeable future, brick and mortar will have some relevance.
View the "7 Retailers That Are Bucking the E-Commerce Trend"