MarketBeat: Week in Review 2/7 – 2/11

The fragile, but steady, recovery in equities was upended when the inflation numbers came in worse than expected. The markets are now factoring in the near certainty of an interest rate increase in March. And that increase may be of the larger 50 basis point variety with at least one Fed president supporting a full 1% increase in the Fed funds rate by June. Supply chain disruptions also moved back to the front burner. Only this time, it wasn’t about the virus at least not directly. Convoys are preventing goods from crossing the U.S.-Canada border and that had some automakers suspending production. Heightened concerns about supply chain disruptions will factor into analysts’ thinking as earnings season rolls on next week. And the MarketBeat team will continue to track the events that are affecting the market and share their insights on how you can be a profitable trader or investor.

Articles by Sean Sechler                                                                                                                                                                

As volatile as the stock market is, equities still represent the best opportunity for growing your personal wealth. As Sean Sechler points out, a number of stocks are now trading significantly lower than they were just a few months ago. Quality still matters. Some of these stocks face a long road back, but Sechler gives investors three stocks for bargain hunters to buy now. Another way for investors to find buying opportunities is to focus on the sectors that are outperforming the market. Right now that means looking for value and cyclical stocks. And Sechler gives investors one pick each from the energy, banks, and industrials sectors. And at times like this, Sechler reminds investors that boring stocks may be beautiful. Many of these stocks are in defensive sectors and offer good fundamentals, two attributes that tend to stand out during market corrections.

Articles by Jea Yu                                                                     

Jea Yu was also looking to help investors successfully buy the dip. Specifically, Yu was looking at shares of Abbott Laboratories (NYSE:ABT). This was a case of mistaken identity as equities that appear to be remotely connected with technology are selling off hard. But the medical products company is seeing strong growth in all its divisions and is an oversold stock that opportunistic investors flock towards.  Another stock that appears to be a good value is Jabil Inc.(NYSE:JBL). The electronics manufacturer has components that are found in all sectors which, as Yu points out, means that many of the electronic devices you own feature Jabil components. With JBL stock down nearly 14% from its 52-week high, it sets up as an opportunistic buy. Sticking in the electronics sector, Yu believes investors should look at Flex (NASDAQ:FLEX) which has managed to weather much of the market volatility that has kicked off the year.

Articles by Thomas Hughes                                                 

Thomas Hughes was the latest MarketBeat analyst to offer an opinion on the Coca-Cola (NYSE:KO) or Pepsi (NASDAQ:PEP) debate. And the conclusion is simple. Investors can’t go wrong buying either stock. But, if you’re looking for a stock with more growth potential, Hughes explains why PEP stock is the tastier option. Speaking of tasty options, Hughes continues to recommend Kellogg (NYSE:K) for the high-yield and deep value it continues to offer compared to other consumer staples stocks. The company continues to ride pandemic tailwinds and as Hughes points out is forecasting continued organic growth in 2022. And Hughes was also writing about the turnaround at Harley-Davidson (NYSE:HOG). The iconic manufacturer revealed its Hardwire strategic plan in February 2021 and with the recent strength in HOG stock compared to the broader market, Hughes writes that the strategy appears to be bearing fruit which makes the company an appealing stock for 2022.

Articles by Sam Quirke

Sam Quirke was eyeing the tech sector which, up until the CPI numbers was starting to show signs of recovery. However, investors know that quality tech stocks will recover; it’s just a question of when. With that in mind, Quirke likes Snowflake (NYSE:SNOW) as a bounce-back stock as investors look for value. As Quirke points out, the data analytics company posted strong earnings that were overlooked by the broader sell-off. Quirke is more cautious about the short-term outlook for Meta Platforms (NASDAQ:FB). However, he agrees with the analyst community that perhaps the stock will start to perform better in the second half of the year.  

Articles by Chris Markoch

The release of the January CPI numbers unleashed another round of panic selling. However, as Chris Markoch points out, that will always create a buying opportunity for investors who know where to look. And Markoch gave investors three stocks that will defy inflation and deserve consideration for your portfolio. Markoch was also looking at the recent drop in Pfizer (NYSE:PFE) stock. As Markoch points out, the company’s mRNA Covid-19 vaccine is an important first step that is likely to set the stage for eventual FDA approval on some of the company’s other mRNA candidates. Markoch also believes the data should be your guide regarding the outlook for Simon Property Group (NYSE:SPG). While it may seem like this would be a difficult time to invest in a REIT that is heavily invested in shopping malls and commercial property, recent surveys show that foot traffic in malls is above pre-pandemic levels. If that’s the case than SPG is a sound investment for value investors.  

Articles by Kate Stalter

With 20 years of experience in various areas of financial services, Kate Stalter is in a good position to analyze the stock of LPL Financial Holdings (NASDAQ:LPLA) the San Diego-based brokerage and investment advisor. Stalter gives investors the lowdown on the company’s strong earnings report which puts LPLA stock in buy range. You can find more of Stalter’s insights on the MarketBeat Podcast. This week’s guest is Will Rhind, founder, and CEO of the GraniteShares ETF.

Articles by Melissa Brock

Exchange-traded funds (ETFs) can be part of an effective investing strategy to fight inflation. That’s why even before this week’s CPI numbers came out, Melissa Brock was steering investors towards what she describes as Inflation-proof ETFs. For more aggressive investors, Brock was analyzing the current state of play in the sports-betting sector. Legalization across all 50 states is losing some momentum, but that may pick up now that New York has joined the list and is setting records. With that in mind, Brock gave investors three of the best sports-betting stocks to buy in 2022. Brock also reminded investors that when they’re looking for diversification they shouldn’t be too quick to dismiss international stocks. Brock points out that some international stocks don’t have the same concerns over overvaluation as do their U.S. counterparts. And she gives interested investors three international stocks that may be worth adding to their portfolios.