MarketBeat: Week in Review 1/25 - 1/29

Things are moving fast and we’re not just talking about GameStop (NYSE:GME) stock. The Biden administration continues to sign executive orders that, for better or worse, are outlining his priorities for the next four years. And that has been great for clean energy stocks and perhaps not as good for oil and gas companies. On the other hand, the vaccine rollout has not been moving as quickly as many had hoped. But with possibly five vaccines soon to be available there continues to be optimism that the economy will continue on its path to being fully reopened.

And of course, the ongoing push and pull happening with GameStop and other stocks with high short interest is creating an interesting debate about what this ultimately means. And if you’re thinking about getting in on the action, I suggest you read Thomas Hughes’ article which you can find here.

Next week brings more earnings and therefore more direction for the market. And the MarketBeat staff will continue to bring you insight on stocks of interest.

Articles by Sean Sechler

In the first ten days of the Biden administration, it’s clear that clean energy will play a key role in the president’s infrastructure plans. Sean Sechler identified 3 clean energy stocks that should benefit from the trillions of dollars that the government is likely to allocate to this sector. Another group of stocks that should remain strong in 2021 are home improvement stocks. The sector has been a big winner throughout the pandemic. And Sechler identified three home improvement stocks that will continue to flourish. And with all the volatility in the market, there is ample reason to be concerned about a correction. But savvy investors will view a pullback as an opportunity to buy quality stocks at a better price. To that end, Sechler identified three stocks that make good buy the dip candidates.

Articles by Jea Yu

At least one of our writers checks in on the electric vehicle (EV) sector. That was the case with Jea Yu who was focused on two emerging EV stocks. Yu notes that money is beginning to flow away from first mover companies like Tesla (NASDAQ:TSLA) and Ford (NYSE:F) is becoming a beneficiary. Ford has made a long-term commitment to electrification, and investors are becoming encouraged that the investment is beginning to pay off. Yu was also looking at Fisker (NYSE:FSR) as an overlooked EV stock. Fisker went public via a SPAC in late 2020. It won’t have a production ready model for its Ocean SUV until 2022, but the company looks to be focused and have a key manufacturing agreement in place. For a different play on the EV sector, investors should consider Desktop Metal (NYSE:DM). Desktop Metal which is arguably the fastest 3D printer on the market designed for mass production, also came to market via a SPAC in 2020.

Articles by Thomas Hughes

Thomas Hughes attempted to make sense of the short squeeze with GameStop (NYSE:GME) stock and warned retail investors that, at this point, they are at risk of being the greater fool. One stock that is moving higher for more understandable (and sustainable) reasons is D.R. Horton (NYSE:DHI). The home builder just reported strong earnings and is considered one of the best ways to play the expected home building boom. Hughes was also looking at the EV sector. In this case, he was considering the recent run-up in shares of Nikola (NASDAQ:NKLA). The question now is if the gain is sustainable or if it’s only a brief blip being led by speculative buyers.

Articles by Nick Vasco

Earnings season has been generally positive for many stocks. However Nick Vasco points out that Corning (NYSE:GLW) is an example of a stock that posted a poor earnings report, but has some catalysts that suggest the stock may be a buy-on-the-dip candidate. On the other side of the earnings story, 3M (NYSE:MMM) had both a solid earnings report and some catalysts that should be enough to propel the stock higher. Vasco also analyzed the fortunes for McDonald’s stock (NYSE:MCD) prior to the company’s earnings report. Despite indoor dining being unavailable, Vasco notes that the restaurant chain has made it through the pandemic about as well as you could expect. That sets the table for the company to soar to new heights in 2021.

Articles by Sam Quirke

There will probably be novels written about the events surrounding GameStop stock this week. Sam Quirke didn’t look to write a book, but took some time to remind investors that the short squeeze craze is likely not over. And Quirke pointed out three stocks that could be the target for a short squeeze. Quirke did not add American Airlines (NASDAQ:AAL) to that list, but he very well could have. As Quirke noted, shares of the airline are moving higher in part because of a revolt against the short interest that is in the stock. The situation with troubled stocks is a good reason to invest in stocks with strong growth. And as Quirke points out, Microsoft (NASDAQ:MSFT) is proving why you can count on the tech sector pushing the market higher.

Articles by Chris Markoch

As expected, clean energy stocks continue to move higher as the likelihood of a clean energy infrastructure becomes a reality. So why were shares of NextEra Energy Partners (NYSE:NEP) falling after earnings? Part of it, theorized Chris Markoch was institutional investors having to sell shares of quality stocks to prop up short options on stocks like GameStop. That’s why investors should look at NEP as a great buy the dip stock. Markoch was also bullish on Johnson & Johnson (NYSE:JNJ) suggesting that the stock will move higher once its Covid-19 vaccine candidate receives an Emergency Use Authorization (EUA).

Articles by Steve Anderson

AT&T (NYSE:T) is a stock that many investors have loved to hate because it has many business units. However, as Steve Anderson writes, having its fingers in many pies is proving to be a strength for the company as it continues to navigate the pandemic. Anderson was looking at another stock that has only recently started to come back into the good graces of analysts. American Eagle Outfitters (NYSE:AEO) is successfully pivoting its business to put its profitable Aerie brand front and center. The long-term outlook for the largely brick-and-mortar retailer is unclear, but in the short-term investors may be able to book some profits by investing in AEO stock.  And while much of the Covid-19 news has centered on the emergence of vaccines, Regeneron (NASDAQ:REGN) is getting a lift on news that its monoclonal antibody treatment for Covid-19 may also have some ability to prevent the virus from emerging.