MarketBeat: Week in Review 1/17 – 1/21

Softness at the end of last week has turned into a broader weakness that is pulling all the major indexes close to correction territory. In fact, by the time you read this, some of them may already be in an official correction. But stocks aren’t the only asset class in a downturn. The crypto market is also down and Bitcoin has broken what had been an established level of support.

However, the show must go on. In this case, it means that investors will get a flood of earnings reports next week. Sometimes this can cause market sentiment to reverse. At other times, it just provides confirmation to existing sentiment. Is this the start of something much worse or a necessary correction for a bull market that still has room to run? We don’t know the answer to that. But the MarketBeat team will continue to track the events that are affecting the market and share their insights on how you can be a profitable trader or investor.

Articles by Sean Sechler                                                                                                                                                                

Despite the sell-off in the tech sector, there will come a point when growth investors are going to seek tech stocks to buy on the dip. If you’re one of those investors, Sean Sechler suggests three FAANG stocks to watch. As earnings season kicks into high gear, these companies are likely to show why they are among the strongest in the market. Turning his attention to conservative investors, Sechler points out that there are several low volatility stocks that tend to perform well in a risk-off environment like the one investors are currently facing. In a similar vein, Sechler was reminding investors that, while dividend stocks are generally attractive, it’s important to be selective. And Sechler gave our readers three high-yield dividend stocks that are backed by strong fundamentals.

Articles by Jea Yu                                                                     

Artificial intelligence (AI) was one of the hot sectors of 2021. But investors who hold Yext (NYSE:YEXT) stock can be forgiven for wondering why the company was left out. Despite rising revenue, YEXT stock is trading near its 52-week low. But with the stock showing oversold indicators, Yu believes that the stock presents a buying opportunity for prudent investors. Another stock that opportunistic investors should consider after a steep sell-off is Ebay (NASDAQ:EBAY). And Yu believes that the stock, which is trading near its 52-week low is showing signs of being oversold and may be a buy-the-dip candidate. And Yu was also looking at shares of AMC Entertainment (NYSE:AMC). After a year in which the stock was trading based on strong bullish sentiment by retail investors, it may be time for the company to be evaluated based on improving fundamentals.

Articles by Thomas Hughes                                                 

It’s always difficult to make predictions regarding the broader movement of the stock market. But Thomas Hughes did his level best by outlining the many macroeconomic factors that give investors every reason to exercise caution in this market. With that said, when all stocks are falling, it’s important to understand why. That’s where analyst ratings come in. And Hughes pointed to a bullish and bearish example. On the bullish side, Hughes suggests that Lowe’s (NYSE:LOW) is beginning to look bullish as analysts are giving the stock upgrades in advance of earnings. On the other hand, Sherwin-Williams (NYSE:SHW) continues to show weakness as the company lowers its EPS guidance.

Articles by Sam Quirke

Sometimes good stocks sell off for no apparent reason. Sam Quirke points out that this seems to be what’s happening with Chipotle Mexican Grill (NYSE:CMG). The stock is down about 25% since September 2021. However, the company continues to post growing revenue and solid EPS. Combined with bullish upgrades from analysts, it may be time for investors to bite into CMG stock. Quirke was also looking at JPMorgan Chase (NYSE:JPM) stock which was dropping after the company posted disappointing revenue and even more disappointing guidance. The answer on whether to buy, writes Quirke, may largely depend on your time horizon. JPM stock looks like a tough trade in the short term, but remains a solid long-term buy.

Articles by Chris Markoch

Chris Markoch was taking a look at the Consumer Staples sector and specifically Procter & Gamble (NYSE:PG). Although the company is likely to meet their short-term growth targets, they are guiding for lower growth in the first half of 2022 followed by a return to growth in the second half. Markoch reminds investors that frequently when companies tell you something you should generally listen which argues for saying away from PG stock for now, but keep it on your watchlist for later. For investors looking for value stocks to buy now, Markoch suggested companies look at super regional banks and gave investors three names that are looking strong after earnings.

Articles by Melissa Brock

Every investor is trying to figure out where they can find value now. Melissa Brock was looking at several sectors to help investors determine where to put their hard-earned capital to work. In the financial sector, Brock points out that the combination of the Fed tapering its bond-buying programs and raising interest rates (probably multiple times) will be a tailwind. Brock was also looking at the tech sector (that’s right the tech sector) and giving investors three tech stocks that are likely to present investors with buying opportunities at some point in 2022. And investors should also be looking at the Materials sector which, as Brock outlines, encompasses many industries that stand to benefit from the recently passed infrastructure bill and gave investors three materials stocks to consider adding now.