MarketBeat: Week in Review 10/25 – 10/29

The heavily anticipated PCE Price Index was released on October 29. The results confirmed what other indicators have already shown. That is, prices are rising quickly. In fact, annual inflation is rising at the fastest rate in three decades. And separate data showed that wages and benefits are also on the rise. That means that price gains are likely to continue. The tech sector was also in focus this week. And the market received some disappointing news from stalwarts Apple which missed on quarterly sales in three years and Amazon which missed on earnings and issued a disappointing holiday forecast. When you put it all together, you can understand why consumer sentiment remains at the lower end of the range it has been in since the pandemic began. Next week brings another full calendar of earnings reports with the jobs report capping off a busy week. 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                                                                                                                                                                

The semiconductor sector is a notoriously cyclical industry. However, Sean Sechler points out that investors need to pay attention to semiconductor stocks as part of their long-term portfolio. Chips will be in demand in many of what appear to be the fastest growing sectors. And for the next several quarters at least, demand will outpace supply. Sechler gave investors three super strong semi stocks that will be critical to growth in the tech sector. As the calendar turns to November, Sechler gave investors three of the top stocks investors should consider in what is considered to be one of the stock market’s strongest months. And Sechler was also pointing investors to three materials stocks to buy in November. The materials sector has been outperforming the market and, due to many catalysts, is likely to continue to outperform for several quarters.

Articles by Jea Yu                                                                     

Clean energy remains a popular, but volatile, sector. That’s been particularly true with hydrogen stocks such as FuelCell (NASDAQ:FCEL). FCEL stock popped to a nearly five-year high in February, but has since come down to earth. But with FuelCell starting to deliver revenue growth, Yu cautions investors to look for opportunistic pullbacks as, in the short term, the upside looks limited. Lithium stocks remain popular, and Yu was specifically looking at Standard Lithium (OTCMKTS:SLI) which is up more than 500% in 2021 but may still have more left in the tank. In addition to using proprietary technology to extract and process lithium, the company is a play on the growing field of carbon capture. And Yu was also bullish on Pfizer (NYSE:PFE) which he points out is likely to generate strong revenue as its Covid-19 vaccine is approved for use with children ages 5-11 as well as the expansion of booster shots.

Articles by Thomas Hughes

Trucking stocks are drawing interest as investors understand the critical role that trucking companies will play in breaking up the supply chain log jam. Thomas Hughes was looking at Saia (NASDAQ:SAIA) which is a less-than-truckload (LTL) carrier and continues to open new terminals at a time when LTL carriers are in high demand. Moving from trucks to cars, Hughes gave investors three under-the-radar automotive stocks to buy in November. Specifically Hughes was looking at OEMs that are benefiting from secular demand, but whose stocks are trading at a discount to the market. Hughes was also checking in on McDonald’s (NYSE:MCD) that continues to have a secret sauce when it comes to beating revenue and earnings. With the company issuing bullish guidance, Hughes advises investors to buy into the strength of this category leader.  

Articles by Sam Quirke

Earnings reports are, first and foremost, backwards looking. However, the guidance that is issued gives analysts and investors a glimpse of what the future holds. With that in mind, Sam Quirke gave investors his picks for three companies who just delivered earnings reports that point towards strong growth in 2022. And while Peloton (NASDAQ:PTON) was not on that list, Quirke points out that although the stock has had a rough go of it in 2021, it’s showing signs that the selloff is over and bullish sentiment is on the rise. Quirke was also one of the first to weigh in on Apple (NASDAQ:AAPL) after the company released a disappointing earnings report that showed that no company is exempt from supply disruptions.  While AAPL stock may have further to fall, the long-term outlook is likely to remain bullish, and opportunistic investors may see this as a time to buy a quality stock on sale.

Articles by Chris Markoch

Chipotle Mexican Grill (NYSE:CMG) reported earnings on October 22. As expected, the company posted strong earnings, but CMG stock gapped down after the report. Chris Markoch gave investors three reasons why investors may be in a selling mood. As Markoch notes, there doesn’t appear to be anything fundamentally wrong with the company’s business. However, no company is immune from supply chain difficulties and it may be best to hold on a new position until getting a better read on revenue and earnings in the next two quarters.

Articles by Kate Stalter

Growth stocks have a place in every investor’s portfolio. And Kate Stalter gave investors three characteristics to look for when deciding if a particular stock is a buy. In terms of specific stocks, Stalter was suggesting investors look at Seagate Technology Holdings (NASDAQ:STX). The company is perhaps best known for manufacturing external hard drives in the days before cloud storage took over. However, the company has made a successful pivot to the cloud and that business is driving growth for STX stock. Another stock that Stalter was looking at was Cadence Design Systems (NASDAQ:CDNS) that is moving higher after the maker of electronic design software delivered better-than-expected earnings. Cadence is being affected by slowing earnings and sales growth. However, Stalter points out that institutional investors are hanging with CDNS stock and that’s one reason why it may deserve to be on your watch list.