MarketBeat: Week in Review 8/30 – 9/3

Equity markets look like they will finish down in this holiday-shortened week. At the moment, investors appear to be more concerned about inflation that is looking less transitory. This week the wet blanket was the U.S. producer-price index which showed an increase of 0.7% in August. While this was lower than the 1% recorded in July, it was still slightly higher than the forecasted 0.6% increase. Investors are also weighing remarks by one Federal Reserve Bank president who recommends the Fed should begin tapering despite the weak August jobs report. With earnings season slowing to a trickle, the market selloff may be a simple case of institutional investors repositioning their portfolios to guard against what some feel is an overdue correction. For the time being, equities are still the place to be. And the MarketBeat team will be eyeing the stocks and stories that are moving the market.

Articles by Sean Sechler                                                                                                                                                                

Earnings season is winding down, but for some companies that means the gains are just beginning. Sean Sechler reminds investors that buying a stock in anticipation of a strong earnings report may work out. However, in many cases a better approach is to wait until after the earnings report. This gives you time to see if a positive move is confirmed. With that in mind, Sechler gave readers three earnings winners to buy now. Earnings season is also a time when dividend investors get rewarded. And Sechler gave readers his picks for three dividend aristocrat stocks that investors should look to buy for passive income. Sechler was also looking at a company behind one of this week’s most anticipated earnings reports. Lululemon (NASDAQ:LULU) continues to deliver on the top and bottom lines which is justifying its premium valuation.

Articles by Jea Yu

Xponential Fitness (NYSE:XPOF) has struggled since going public in late July. However, the company is setting up as a recovery play as the boutique fitness franchisor gives fitness enthusiasts both in-person and virtual options. If the company delivers on its growth projections, investors who buy on the current dip are likely to be rewarded. Investors who are looking for a less speculative stock can consider Li Auto (NASDAQ:LI). While the EV revolution in North America is stuck in neutral, Chinese EV stocks are already recovering and will remain immune from the regulations the Chinese government is imposing on other industries. Yu gives investors the reasons why Li Auto is the best-in-class among Chinese EV makers. Yu was also checking in on Lemonade (NYSE:LMND). The company brings fintech into the insurance business. However, LMND stock suffered a sharp correction after the winter storms in Texas exposed the company’s vulnerability to weather events. However, the stock appears to be trading in a range which is generally a sign that a stock is ready to make a move.

Articles by Thomas Hughes

It wouldn’t be a week if one or more of our writers wasn’t looking at the semiconductor sector. The global chip shortage is keeping these stocks on the radar of investors. However, quality still matters and that’s why Thomas Hughes recommends Broadcom (NASDAQ: AVGO) and gives readers four reasons to support his bullish outlook. While semiconductor stocks are climbing, cloud computing stocks are starting to show slower growth.  When that’s the case, Hughes recommends looking for stocks that are not moving simply based on their financial numbers. With that in mind, he gave readers two cloud computing stocks that are flying under-the-radar, but perhaps not for long. Casey’s General Stores (NASDAQ: CASY) reported this week and despite a beat on the top and bottom lines, the stock is dropping. But with several catalysts driving its growth, Hughes suggests this may be a time for opportunistic investors to buy CASY stock at a better valuation.

Articles by Chris Markoch

The online Reddit forum is continuing to be a gathering place for retail investors to share their investing ideas. The community has inspired a group of stocks known as Reddit stocks that are redefining the way some investors are approaching the market. Chris Markoch summarized the Top 10 Trending Reddit Stocks based on mentions based on the MarketBeat screener. Markoch was also looking at three EV stocks that appear to have staying power no matter how long EV adoption takes and have a favorable outlook by the analysts. One sector that doesn’t need any charging is the cybersecurity sector. And because of its dominance in the sector, Markoch recommends that investors should continue to buy CrowdStrike (NASDAQ: CRWD) despite its premium valuation.

Articles by Kate Stalter

This year is proving to be one of the most active since 2000. That was a bad year for the market, but as Kate Stalter points out investors are better served not trying to overthink the market, particularly since riding hot IPOs is a good way to make short-term profits. With that in mind, Stalter gave readers three tech IPOS that are outperforming the market. Stalter also was pointing investors to the popularity of thematic ETFs. As the name suggests, these are funds that focus on a particular sector of the market. And while these are not intended to be buy-and-hold investments, investors can take advantage of short- to mid-term price movement in a sector that is primed for growth. Stalter was also making a bullish case for Abbott Laboratories (NYSE: ABT)which continues to move higher after reporting strong earnings in July.