MarketBeat: Week in Review 10/11 – 10/15

Investors were looking for some good news this week and they got it on three fronts. First, the Core Producer Price Index (CPI) showed a slight moderation. On Thursday, the big banks kicked off earnings season with a reminder that third-quarter earnings are likely to remain strong. Then on Friday, the market was rallying based on better-than-expected retail sales. All of this points to the markets having a positive week. Next week investors will continue to get a better understanding of how successful companies are able to pass costs along to consumers. You can count on the MarketBeat team to identify and analyze the stocks and the stories that are moving the market.

Articles by Sean Sechler                                                                                                                                                                

Inflation continues to cause volatility in the market. The strategy for investors is to understand that the economy will be in an inflationary environment for the next several quarters at least. And Sean Sechler gave our readers three stocks that are likely to rally if inflation concerns linger. The recent rally in cryptocurrencies confirms that digital currencies remain popular among risk-tolerant investors. However, the emergence of several cryptocurrency stocks gives even risk-averse investors an opportunity to get exposure to this growing sector. And Sechler gave readers three choices to play the comeback. Another stock that Sechler was eyeing this week was MGM Resorts (NYSE: MGM). Casino stocks haven’t bounced back quite as strong as expected, but that appears to be changing. And MGM also offers investors exposure to the fast-growing online sports betting industry.

Articles by Jea Yu                                                                     

Travel stocks caught the attention of Jea Yu this week. Domestic airline traffic is recovering, but it won’t be at pre-pandemic levels until when or if business travel returns. That makes value carriers like JetBlue (NASDAQ: JBLU) a smart investment choice because the airline is not as reliant on business or international travel. The outlook for cruise line stocks is getting better, but as the airline sector it may be well into 2022 before the cruise lines start to realize significant revenue. However, risk-tolerant investors may want to nibble on quality cruise line stocks such as Royal Caribbean (NYSE: RCL) as revenue is beginning to trickle in. And Yu was also looking at the energy drink market and specifically Monster Beverage (NASDAQ: MNST). MNST stock has been in a multi-week selloff, but while the company is dealing with supply chain concerns, demand for the product remains strong and should be a catalyst for the stock.

Articles by Thomas Hughes

Recreational vehicle (RV) sales soared during the pandemic. This has created an unusual situation for RV companies that are working through a backlog of orders to keep up with demand. Thomas Hughes gave readers three RV stocks that have significant tread left on their tires. Hughes was also looking at two recently downgraded healthcare stocks and reminding investors that when you believe in the long-term outlook for a company, you shouldn’t let a lowered price target scare you off.  In fact, it can be a significant buying opportunity. A specific example of this phenomenon in another sector is Verizon (NYSE: VZ) which is seeing its consensus price target go down over the last 90 days, but still represents a buying opportunity.

Articles by Sam Quirke

There’s no question that millennials and Generation Z customers are a coveted demographic for marketers. However, as Sam Quirke points out, investors should keep an eye on these demographics as well. Analysts at Cowen recently released the findings of a consumer survey and identified key trends that are being accelerated by these consumers. With that in mind, Quirke highlights three stocks that Cowen identified as buying opportunities based on this survey. Quirke also made an insightful point regarding the outlook for Airbnb (NASDAQ: ABNB). The company initiated and completed its initial public offering (IPO) amidst the Covid-19 pandemic. This suggests that company management was not going to overreact to the severity of the pandemic and liked the company’s prospects. Technical indicators suggest ABNB stock may have found a bottom. If that’s true than investors can look at this time as a buying opportunity.

Articles by Chris Markoch

Referring to a stock as a “Reddit stock” has become a pejorative for a speculative stock. But that isn’t always the case. Chris Markoch highlights a feature available to MarketBeat All Access subscribers that allows them to see the top stocks that are getting mentions in Reddit including the top ten stocks that are trending on Reddit in the last 30 days. Bank stocks were in focus this week and Chris Markoch gave investors his selections for three bank stocks that appear to be heading higher after earnings. One stock that may not be heading higher as fast as investors would like is Delta Air Lines (NYSE: DAL). The airline faces fairly easy comparables over the next several quarters, but investors should not get ahead of DAL stock which may still face some turbulent quarters.

Articles by Kate Stalter

Kate Stalter was reminding investors that equities may not always be the best hedge against inflation. Investors who are nearing retirement may want to consider shifting some exposure to commodities that are outperforming equities. Stalter was also looking at Travere Therapeutics (NASDAQ: TVTX) as a speculative opportunity in the volatile biotech space. The stock is up over 75% on positive news regarding Sparsentan, which they are trying to bring to the market as a treatment for rare kidney conditions. Investors looking for a rock-solid play in the biotech space should continue to look at AbbVie (NYSE: ABBV). The stock has been falling following disappointing news regarding Rinvoq, its rheumatoid arthritis treatment. But this may just be a case of investors selling the news. Analysts remain bullish on ABBV stock which still appears to be a long-term winner.