MarketBeat: Week in Review 12-6 – 12/10

Investors got the latest read on inflation and it’s a doozy. Not only does the inflation rate remain at its highest level in 30 years, but it’s also moving higher. And next week data on housing, retail sales, and the Producer Price Index (PPI) will likely confirm the inflation story.  However, the markets seem unfazed even though persistent inflation supports the idea of the Federal Reserve raising interest rates as early as next Spring. On the other hand, Bitcoin (CCC:BTC-USD) and gold are also on the rise although Bitcoin hasn’t been a true contrarian indicator lately. Perhaps investors are signaling that the recent selloff was factoring in the bad news from the report. Next week will be a quieter week for earnings reports, but Federal Express (NYSE:FDX) reports on December 16 which could give the market another data point about holiday sales. The MarketBeat team will be monitoring that and other stocks to your portfolio weather the continuing volatility.

Articles by Sean Sechler                                                                                                                                                                

Semiconductor stocks continue to be among the best performers and with good reason. The chips that these companies make are essential components of many products that we use today. And more importantly, to the products that will shape our economy in the future. Sean Sechler gave readers three semiconductor stocks that are offering good value as they have dropped in the market selloff. Another chipmaker that Sechler was eyeing was Marvell Technology (NASDAQ:MRVL). The company crushed its recent earnings report and Sechler identified three reasons why investors can consider adding MRVL stock to their portfolio. And perhaps the market’s blasé’ reaction to inflation is because, as Sechler reminds investors, December is historically a strong month for stocks. With that in mind, he gave readers three stocks to buy in December (spoiler alert: there’s an additional semiconductor stock on that list as well).

Articles by Jea Yu

Investors are frequently drawn to the next new thing. However, Jea Yu sees Adobe (NASDAQ:ADBE) as a reminder that it can pay to go with a recognized leader. The pioneer in cloud computing software just delivered a strong earnings report and issued solid forward guidance. Many companies have refrained from offering guidance that speaks to the stickiness of Adobe’s business model which remains the same whether work is being done in an office or remotely. Staying on the digital side of things, Yu was also analyzing PubMatic (NASDAQ:PUBM) as a digital advertising play. The company just posted a double beat during earnings season and raised its fourth-quarter and full-year revenue guidance on expectations of strong demand. Another company that is raising at least its short-term guidance is Intuit (NASDAQ:INTU) the company that is known for its Quickbooks and TurboTax products. As tax season approaches, the company forecasts demand for its products. This is a seasonal play, which is why Yu believes now is the time to buy-in.

Articles by Thomas Hughes

As investors digest the new inflation numbers, Thomas Hughes would suggest you take a look at Oil-Dri Corporation (NYSE:ODC) which is likely to start delivering better margins as it passes higher costs through the supply chain. That may not be good news for consumers who rely on the company’s “essential” products, including cat litter. But that ability to pass the costs along makes a bullish case for ODC stock. One company that is having a short-term problem with its margins is Casey’s General Stores (NASDAQ:CASY). As Hughes points out, there doesn’t appear to be anything flawed with the company’s business model. However, the company is absorbing the cost of acquisitions in this period of high inflation. And for now, that is weighing on the bottom line, but as Hughes sees it, that’s a buying opportunity for investors. One company that is managing to shrug off both inflation and supply chain concerns is The Lovesac Company (NASDAQ:LOVE). This may be a case of having the right product at the right time. The furniture industry as a whole is benefiting as more people are rethinking their living space. And the company’s eco-friendly modular approach to seating is a trendy alternative.

Articles by Sam Quirke

Market selloffs can try the resolve of growth-oriented investors. And that has been the case with early investors in Rivian (NASDAQ:RIVN). As Sam Quirke points out investors have seen all four seasons with this stock and, as a pre-revenue company, things are likely to stay volatile for some time. That may not make it attractive to short-term investors. But if you have the ability to hold the stock for the long term, there could be an attractive payoff. A different approach to handling the market selloff is to flee to quality. And that put Electronic Arts (NASDAQ:EA) on Quirke’s radar. The video game maker just posted a double beat in their earnings report and analysts have a bullish outlook for EA stock as a leader in a growing sector. And for contrarian investors, Quirke suggests taking a look at Peloton (NASDAQ:PTON). The stock is down 70% from its all-time high reached earlier this year. However, as Quirke points out, in the short term PTON stock does look oversold which may create an opportunity for risk-tolerant investors.

Articles by Chris Markoch

Chris Markoch was eyeing two stocks that were solid buys during the pandemic, but have lost their luster recently. In the case of Kroger (NYSE:KR), the stock bounced higher after a solid, but not spectacular earnings report. Markoch predicts that the inflation number will guide the stock’s immediate fortunes. Should the number come in at, or below, expectations, the rally may continue. But watch out if the number comes in significantly higher as analysts are concerned about the company’s gross margin. Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) presented a different case. Analysts didn’t care for the company’s earnings report which was affected by what the company believes are transitory issues in its particular supply chain. With that said, the company is still bullish on its growth plans the only question is if investors will take that ride with them.

Articles by Kate Stalter

Kate Stalter was looking at midcap stocks which, as she points out, are a class of stocks often overlooked by investors. In this case, Stalter was looking at three midcap stocks that are consolidating below recent price highs and offering her analysis on which, if any, look like buying opportunities. Stalter was also looking at several companies that conducted their initial public offering (IPO) in the last three years. These young companies are frequently some of the fastest-growing stocks. And she gave investors three such companies that are showing both fundamental and technical strength. And a clear succession plan has analysts optimistic about the fortunes of Alibaba Group (NYSE:BABA). The stock has been under siege throughout much of 2021, but this may be the first indication that institutional investors are warming back up to BABA stock.