MarketBeat: Week in Review 9/7-9/11

This week the markets attempted to find direction after the tech-led selloff that occurred before the Labor Day weekend. And as the week ended, the outlook is still hazy. However, one thing is becoming clear. Investors are not giving companies the “Covid-19 pass” anymore. Companies that miss on earnings are being punished.  And that makes it more important to have access to insightful analysis as we near what will likely be one of the more volatile fourth quarters in recent history. The MarketBeat team of writers continues to look at the companies and sectors that are moving the market. And regular readers will benefit from the hidden gems they help reveal. Here’s a look at some of the articles our staff picked to help make you a better investor.

Articles by Sean Sechler

Market corrections can allow investors to buy quality stocks at bargain prices. Sean Sechler used the investment adage “when they’re crying, you should be buying” to give readers three stocks to buy at a nice discount. For investors who like a little bit more risk to go with strong growth potential, Sechler pointed them in the direction of Snowflake. The cloud-based data warehousing company is preparing for its initial public offering (IPO) in the next 60 days. And Sechler believes it could be the biggest IPO of the year. On a more cautionary note, Sechler wrote about Wayfair (NYSE:W). The company has benefited from the e-commerce boom, but there are some risks that investors should not ignore.

Articles by Jea Yu

Jea Yu had his eyes on stocks that have been laggards, but may be ready to see their fortunes change. Oracle (NYSE:ORCL) has largely been stagnant while other tech stocks have surged. However, the latest tech wreck should give investors a chance to see the value of this tech pioneer that is trading at what Yu terms a “severely discounted multiple.”  Another stock that has been beaten down (and with good reason) is Carnival (NYSE:CCL). However, Yu sees buying opportunities for investors with a high risk tolerance and a lot of patience. Yu also likes Fox Corporation (NASDAQ:FOXA). The media network is benefiting from two catalysts. First, the company is getting positive response to its move towards a digital and streaming platform. And second, Fox is seeing a resurgence of viewership at Fox Sports as live sports has resumed.

Articles by Thomas Hughes

Thomas Hughes has his eyes on upgrades. And he thinks you should too. What Hughes is referring to is this period between earnings seasons when analysts issue upgrades for select stocks. Analysts will often clue investors into undervalued stocks before the broader market catches up. Investors will be wise to pay attention. Hughes was also looking at Tilly’s (NYSE:TLYS). This is a stock that might not attract much attention because of a reliance on its brick-and-mortar operations. However, recent gains in e-commerce suggest the company is writing an attractive second act. And Hughes was also advising investors to ignore the recent drop in Lululemon (NASDAQ:LULU). Despite being caught in the market selloff, analysts remain bullish on the stock, and Hughes explains why you should too.

Articles by Sam Quirke

Speaking of companies that are successfully pivoting to e-commerce, Sam Quirke had his eyes on Tapestry(NYSE:TPR). The parent companies of iconic luxury brands such as Coach and Kate Spade posted an impressive earnings report that is giving investors hope for a resurging luxury sector. And if investors are looking for another reason to be optimistic, Quirke points out that Disney (NYSE:DIS) is just 10% off its March lows and should easily turn positive in 2020. However, Ford (NYSE:F) may not be as lucky. Despite rallying 75% since March, Quirke points out that the automaker still faces difficult headwinds.

Articles by Nick Vasco

Nick Vasco was looking at Mastercard (NYSE:MA) and liking what he sees. The company is squarely positioned for the move towards a cashless and contactless payment landscape. 2020 has presented challenges for the company and its competitors, but Mastercard is well positioned to benefit moving forward. Vasco was also writing about the comeback story that is occurring at Toll Brothers (NYSE:TOL). The company and the stock are starting to bounce off the pandemic-induced low as demand is increasing. Finally, Vasco wrote about Chipotle Mexican Grill (NYSE:CMG)and why the company continues to be a shining star in the fast casual sector.

Articles by Chris Markoch

Even as the news about a potential Covid-19 vaccine dominate the headlines, Chris Markoch was writing about stay-at-home stocks that continue to perform well, and that should stay strong for the remainder of 2020. One stock that Markoch didn’t list with those three, but easily could have, was Peloton (NASDAQ:PTON). The maker of fitness equipment is seeing that the pandemic is allowing it to have the last laugh on customers by delivering its first profitable quarter. On the opposite end of the spectrum, Markoch was looking at Dave & Buster’s (NYSE:PLAY) and advising investors to stay far away from this stock until more favorable conditions return.

Additional Editor’s Picks

 Two other companies that attracted our editor’s attention are Federal Express (NYSE:FDX) and Rocket Companies (NYSE:RKT). In the case of Federal Express, our staff previewed next week’s earnings. The big question will be able whether the company can provide an encore for its strong earnings report of last quarter. in the case of Rocket Companies, the company just launched its initial public offering (IPO) in August. And although the housing market is trending in a positive way for the company, increased competition in the digital mortgage space makes investors wonder if RKT stock will be an IPO winner.