Stocks continued to rally in a short trading week. For now, investors are shrugging off a retail outlook that is cautious to bleak. Or are they? The breadth of this market rally continues to be limited to specific stocks and primarily in the technology sector. On the other hand, if the yield on the 10-year Treasury note continues to fall, there may be reasons for investors to put their capital to work in the stock market.
Earnings season is winding down, but there will still be a few names to consider next week, including Salesforce Inc. NYSE: CRM, CrowdStrike Holdings Inc. NASDAQ: CRWD and Snowfake Inc. NYSE: SNOW. Dollar Tree Inc. NASDAQ: DLTR will also report, giving investors further data on the health of consumers heading into the holiday season.
Investors will also be looking at the outlook for energy stocks after the OPEC+ meeting, which will provide investors with a look at production heading into 2024. MarketBeat has all of this and more covered. Here are some of our most popular articles from this week.
Articles by Jea Yu
Last week, Jea Yu wrote about two stocks that missed on earnings but saw their stocks move higher. This week, Yu analyzed two stocks that are falling despite an earnings beat. As is the case with many stocks, analysts looked beyond the headline numbers and saw reasons to believe these stocks may be overvalued.
On the other hand, Yu was looking at two stocks that underpromised and over-delivered. To be fair, companies do this quite a bit, but as Yu writes, it can set up a trade opportunity when traders identify these discrepancies.
Yu was also writing about the comeback underway for Wynn Resorts Limited NASDAQ: WYNN. Much of the resurgence in shares of the luxury resort and casino operator can be attributed to the Covid-19 restrictions being lifted in China. The company may also get a surprise catalyst from the Middle East as soon as 2027.
Articles by Thomas Hughes
By the time you read this, Black Friday will have come and gone. However, Thomas Hughes gives you three retail stocks that may have the worst already priced in. In each case, traders may want to consider these names for a possible turnaround.
Hughes also reminded investors that it can pay to ride the hot hand. In this case, he recommended that investors look at the most upgraded stocks page on MarketBeat to find the stocks that analysts are upgrading. Not only are many of the top names monetizing AI, but many have yet to report earnings. Traders will want to watch these names closely for year-end trade opportunities as earnings season winds down.
A different way to play the tech sector is by looking at the medical device sector, which includes robotics and AI. In the case of Medtronic PLC NYSE: MDT, Hughes notes that after two long years, a bottom may be in, giving investors a solid long-term opportunity.
Articles by Sam Quirke
This earnings season is confirming the fact that the consumer is wearing down. Many retailers are lowering their guidance as consumers shift from discretionary purchases to staple items. That would appear to play into the hands of discount retailers. But even here, you have to be cautious. However, Sam Quirke writes that if you are only going to own one retail stock, investors should consider Ross Stores Inc. NASDAQ: ROST. In addition to beating on the top and bottom lines, the company increased its guidance and is reporting expanding margins.
Articles by Chris Markoch
Chris Markoch was also eyeing one of the promising names in the retail sector with momentum going into earnings. Kohl's Corporation NYSE: KSS was surging before earnings. However, a mixed earnings report and even more mixed guidance has KSS stock selling off. Markoch points out that although the stock has some attractive fundamentals, it may still be a better trade than an investment.
Articles by Kate Stalter
Microsoft Corporation NASDAQ: MSFT was making noise this week on news it was establishing its own AI division and hiring OpenAI CEO Sam Altman, who was fired on November 17, as well as co-founder Greg Brockman to run it. OpenAI has subsequently rehired Altman, but Stalter cites several reasons why this won't derail the company's AI ambitions, whoever is leading the charge.
The bounce in oil prices has reversed, and many of the top oil and gas stocks are trading lower as a result. But as Stalter writes, oil transportation companies and refiners are less sensitive to fluctuations in oil prices. With that in mind, Stalter offers several names in the energy sector that may be under the radar for many investors.
Stalter also wrote about the surprise bounce in consumer discretionary stocks last quarter. While it's too early to tell if this is a long-term trend, Stalter cited three consumer discretionary stocks that appear to have a long runway for growth.
Articles by Ryan Hasson
This week, MarketBeat analysts approached the hotly anticipated earnings report from Nvidia Corporation NASDAQ: NVDA from every angle. Ryan Hasson helped summarize the company's earnings report, which was a blockbuster despite ongoing global challenges.
Hasson was also writing about the surge in bank stocks. These have been laggards for much of the year but have been moving higher as the rate of inflation slows, which is allowing the Federal Reserve to keep interest rates at their current level. Hasson gives investors three bank stocks that continue to offer upside.
Another sector that continues to defy expectations is homebuilder stocks. The issue here is insatiable demand that continues as individuals who have relocated to different areas continue to drive up demand even as the inventory of existing homes remains small. Hasson gives you several names to consider in this sector.
Articles by Gabriel Osorio-Mazilli
Gabriel Osorio-Mazilli wrote about Nvidia before earnings, and he reminded investors that some stocks are expensive for a reason. Nvidia is one of them, giving investors several reasons to continue buying the stock even at an eye-popping valuation.
Taking the other side of the valuation argument, Osorio-Mazilii analyzed three stocks that have been getting pulled lower as investors believe their cheap valuation may indicate underlying problems. Osorio-Mazilli helps debunk those objections and points you to three bargain stocks with value hiding in plain sight.
As we enter the home stretch of 2024, Osorio-Mazilli was also writing about three agricultural stocks that play off the idea that every investor has a common denominator... they all provide the food that consumers will need, which makes these stocks solid defensive performers even as they offer a tech spin.
Articles by MarketBeat Staff
Continuing to look at retail stocks, the MarketBeat staff wrote about why investors may want to follow the lead of shoppers frequenting The Gap Inc. NYSE: GPS. The results virtually ensure that the company will close out a profitable year after a disappointing year in 2022. But as our staff points out, the stock's short-term fortunes will depend on the results from the current quarter.
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