MarketBeat Week in Review – 2/20 - 2/24

Key Points

• Stocks are ending the week sharply lower. 
• Issues from inflation to lower earnings guidance is throwing a kitchen sink of uncertainty at investors. 
• You may want to stay on the sidelines, but there are opportunities in every market.  
• Here are some of the most popular articles from this week.  

And down we go. Stocks are ending the week sharply lower. The sell-off is being sparked by a host of issues. The reading of the PCE index shows inflation remains as sticky as ever. And that confirms that the Federal Reserve’s job is nowhere near over. The housing market is down. Geopolitical tensions are rising. Companies continue to guide for lower revenue and/or earnings. To sum it up, the kitchen sink is being thrown at investors and not in a good way. It’s enough to make you want to stay on the sidelines.

But at MarketBeat we know that opportunities exist in every market. Next week brings more economic data and more earnings reports. And our team of analysts works to find the stocks and stories that are moving markets. Here are some of the most popular articles from this week.  

Articles by Jea Yu 

One of the areas of opportunity for investors is in lithium stocks. Lithium is going to be a crucial commodity for electric vehicles. This week, Jea Yu wrote that it may be time for investors to buy Lithium Americas Corp. NYSE: LAC. The company is scheduled to begin mining this year and has entered into a binding supply agreement with General Motors Co. NYSE: GM. Both catalysts make the stock attractive to speculative investors. Travel-related stocks are also holding up well as “revenge travel” continues. One such stock is Airbnb Inc. NASDAQ: ABNB.

Yu writes about the opportunity that may exist after the company beat on the top and bottom lines and increased its guidance for the coming quarter. On the other side of the spectrum, Yu explains why the early January enthusiasm for Shopify Inc. NYSE: SHOP stock may be misguided. The stock is down nearly 10% this week as the company lowered its outlook for the coming quarter.  

Articles by Thomas Hughes 

Thomas Hughes writes this week that there are sweet and sour narratives for semiconductor stocks. Fortunately for Applied Materials NASDAQ: AMAT it falls into the sweet case. The company produces the equipment and services that semiconductor foundries need to make next-generation technology. And Hughes writes about why the recent rally in AMAT stock may not be over. Hughes also wrote about the current state of Home Depot, Inc. NYSE: HD stock.

As Hughes explains, the stock could be heading lower, but that may present a buying opportunity, particularly with its recently announced dividend increase. And for income-oriented, buy-and-hold investors, Hughes identified three high-yield value stocks that are offering investors attractive buying points.  

Articles by Chris Markoch 

Chris Markoch was also looking at lithium miners. In this case, he was looking at Albemarle Corporation INYSE: ALB). Despite rumblings that discounts being offered by China’s largest battery maker may reduce demand for lithium, Markoch points out that it doesn’t change the long-term narrative for lithium demand.

And Albemarle has also been an early beneficiary of the Infrastructure Act. And speaking of mining, Markoch was writing about Barrick Gold Corp. NYSE: GOLD. But while gold is off to a good start in 2023, Markoch offers an opinion that copper may be the real catalyst that will make GOLD stock shine. 

Articles by Kate Stalter 

While Chris Markoch and Jea Yu looked at two of the lithium stocks with a high market share, Kate Stalter took this opportunity to remind investors that they can find bargains in some stocks that command a smaller market share. This week she gave investors three lithium stocks that they may want to have on their radar.

Energy stocks also look to outperform in 2023, and Stalter gave investors three midcap energy stocks that may provide investors with impressive gains. Sticking with the energy sector, Stalter also looked at three master-limited partnerships for investors to consider. These businesses have a structure that allows them to offer higher-than-average dividends.  

Articles by Matthew North 

A common theme among many of the MarketBeat analysts is the appeal of dividend stocks in this current market environment. Matthew North drove that point home with two articles. First, he takes a step back and explains why dividend stocks look appealing this year and why investors should not ignore them. One characteristic investors should look at with dividend stocks is companies that consistently increase their dividends.

With that in mind, North offers up two stocks that will soon be dividend aristocrats – meaning they have will have increased their dividends for at least 25 consecutive years. And while dividend stocks may strike some investors as boring, nothing is boring about these two stocks.  

Articles by MarketBeat Staff 

In a volatile market, sticking with proven large cap stocks can help investors “keep it in the fairway.” This golf term just means staying away from trouble and realizing that right now any gain is better than a big loas. The MarketBeat staff wrote about three large cap stocks that are offering a compelling mix of a positive upside and good dividend yields. Another strategy for more risk-tolerant investors is to look for growth in certain sectors like biotechnology.

Biotech stocks are notoriously volatile, but they do represent an opportunity for a reward that makes the risk acceptable. If you have the room for that kind of risk, you’ll want to look at these mid-cap biotech stocks that analysts see as doubling in share price.