MarketBeat: Week in Review 2/8 – 2/12

This week saw the market return to record highs. All the major indexes had a strong week, but it’s hard to say why. The Fed expressed optimism about the future of the economy. Investors are also feeling confident that a stimulus package is getting closer. And the vaccine rollout appears to be picking up steam.

Another reason for the market’s enthusiasm may have been that corporate earnings continue to be strong. In what was the last big week for earnings, the trend towards positive returns continued. That has investors in a buying mood even as the market is showing signs of topping out.

Next week will be a short week for investors and traders as the market takes a pause on February 15 to observe President’s Day. However the MarketBeat staff will continue to bring you insight on stocks of interest as the market continues to provide no lack of stories.

Articles by Sean Sechler

Sean Sechler reminded readers, “active trading strategies can be a lot of fun and deliver immediate results, there’s something very satisfying about investing in a quality company that you can hold on to for many years.” With that in mind, Sechler gave readers three quality buy and hold stocks that have a history of strong earnings and a wide moat. On the other end of the spectrum, Sechler was looking at three high-flying growth stocks as investors look to stocks to generate returns on their capital. And while all of the investor attention seems to be on the electric vehicle sector, Sechler compared two legacy carmakers Ford (NYSE:F) and GM (NYSE:GM). Both have been in a somewhat quiet uptrend and Sechler analyzes which is the better buy.

Articles by Jea Yu

This week Jea Yu continued to look at lithium stocks. This week he turned his eye on Piedmont Lithium (NASDAQ:PLL) which investors should take a look at not only because of its deal with Tesla (NASDAQ:TSLA) but for the role it may play as larger lithium miners are reaching capacity limits for 2021. Yu also turned his attention to the iGaming market and had two stocks to recommend. The first, GLU Mobile (NASDAQ:GLUU) is a publisher of social app-based games. The company saw its revenue soar during the pandemic and is showing investors that its titles have the stickiness that make this company a solid post-pandemic stock to buy. The second iGaming stock was Everi Holdings (NYSE:EVRI). In the case of Everi, investors are warming to its role as an outlet for mobile casino games.

Articles by Thomas Hughes

News that Congress is preparing legislation that could lead towards the legalization of cannabis at the federal level made cannabis stocks volatile this week. Thomas Hughes pointed investors towards three undercovered and unloved cannabis stocks that might be stealth buys. Hughes was also reviving the debate between Coke (NYSE:KO) and Pepsico (NASDAQ:PEP). But instead of blind taste tests, Hughes was looking at which stock was the better investment. The headline says it all, he believes it’s Pepsi’s time to shine. Another article drawing the attention of readers was Hughes analysis of CTS Corporation (NYSE:CTS). CTS is a supplier for some of the nation’s largest OEM’s and will play a huge role in getting our nation’s supply chains up and running.

Articles by Nick Vasco

Despite, or maybe because of, the nation’s broad shift to digital learning, Chegg (NYSE:CHGG) – the direct-to-student learning platform is having a great year. There is some concern that the company will not be able to keep up with the accelerated revenue growth it saw in 2020 but analysts remain bullish. Nevertheless Vasco advises caution until the company shows it is delivering results. Spotify (NYSE:SPOT) was another pandemic winner, and despite a stellar earnings report shares of the company were falling. However the company, and Vasco, believe that due to uncertainty surrounding the pandemic, the stock may have further to run and makes a solid candidate to buy on the dip. A company that may have not been a pandemic winner, but is turning into a nice recovery play, is O’Reilly (NASDAQ:ORLY). The reasoning is simple; the more people drive, the more their cars will need maintenance. Plus, in a tight economy, people are holding onto their cars longer.

Articles by Sam Quirke

The trend toward cybersecurity sent shares of FireEye (NASDAQ:FEYE) soaring last year. But thus far, 2021 has not been so kind. Nevertheless, Sam Quirke believes investors should begin to reconsider their position as analysts have become bullish on the stock again. For speculative investors, Quirke recommended taking a look at the retailer Nordstrom (NYSE:JWN) as a buy on the dip candidate. The company had a nice run as part of the vaccine rally, but the share price has come down and investors willing to hold for the long haul may be rewarded. One stock that doesn’t require speculation, says Quirke, is Disney (NYSE:DIS). The company’s recent earnings showed a 20% decline in overall revenue despite the fact the company was far from firing on all cylinders. Quirke suggests there’s not a lot of downside to buying into Disney stock.

Articles by Chris Markoch

Chris Markoch was also taking a look at cannabis stocks. But unlike where Thomas Hughes directed investors, Markoch took readers right to the top with Canopy Growth (NASDAQ:CGC). The problem for Canopy, as Markoch sees it is there are other cannabis companies that are better positioned to access the U.S. market if it does become open. A similar tale is playing out with Bloom Energy (NYSE:BE). The United States may finally be embracing a hydrogen future, but it’s not here yet, and BE stock is priced as if it is. Not to be completely bearish, Markoch had a bullish outlook for Newell Brands (NASDAQ:NWL). The company benefited from strong demand in 2020 and it’s not unreasonable to expect that demand to continue in 2021.

Articles by Steve Anderson

It’s usually best to not fight a trend. And that, analyzes Steve Anderson, is why investors should hold onto, and perhaps add to their positions on VeriSign (NASDAQ:VRSN). On the heels of an earnings beat and an improving analyst outlook, the provider of domain name registry services an internet infrastructure looks like it has room to run. Anderson was also sounding a cautionary note about cannabis stocks, and Tilray (NASDAQ:TLRY) as it seems that the retail investment crowd may be bidding these stocks higher. Anderson also got our readers attention with an analysis of Hanesbrands (NYSE:HBI). The company turned in a solid earnings report and now investors will wait and see if the company’s Full Potential initiative will live up to its name.