MarketBeat: Week in Review 3/1 – 3/5

Bond yields continued to upset the equities market this week, particularly the tech stocks. Stocks however look to be closing the week strong and so it seems that the much anticipated bursting bubble may still have some air in it after all.

The market is still putting its hopes on Congress passing the $1.9 trillion stimulus bill. It passed the House now we just need to wait on the Senate. Putting aside the question of what’s actually in the bill, the market is betting that $1,400 checks and an extension of unemployment benefits will recirculate back into the economy.

That story should play out by this time next week. In the meantime, the MarketBeat staff will be hard at work helping you identify and act on the trends that are moving the market. Here’s a sampling of what they saw this week.

Articles by Sean Sechler

A new month brought some similar questions to mind for investors. And most of that had to do with the volatility that is roiling the markets. At times like this, the trend can be your friend. Sean Sechler took a look at three stocks that have pulled back from their highs and appear to be great buying opportunities for the month of March. However, a different way to play a volatile market is to look for historically strong companies that underperformed. Over time, a solid track record matters. That’s one reason Sechler was looking at value stocks that appear ready for a comeback. However, if you’re still riding the growth stock train, Sechler also gave our readers three lesser-known growth stocks that are indicating a strong move forward.

Articles by Jea Yu

The ongoing semiconductor chip shortage is causing opportunistic investors to look for quality stocks that have less exposure to the automotive sector. Marvell Technologies (NASDAQ:MRVL) is forecasting growth in its key sectors of 5G, networking, cloud, and yes the automotive industry as well. But with a very balanced portfolio of clients, MRVL stock presents a buy-on-the-dip opportunity. Another stock that may present that opportunity is the online education technology platform 2U Inc. (NASDAQ:TWOU). The company was a pandemic winner, but TWOU stock has fallen sharply in the last month. However, if you believe in the long-term narrative created by a new generation of students, Yu believes this could be another opportunistic buy. Turning his attention to a contrarian stock, Yu was looking at Lordstown Motors (NASDAQ:RIDE). Shares of RIDE tend to correlate with Workhorse (NASDAQ:WKHS) stock. And with the USPS leaving Workhorse out of its contract, shares of RIDE have dropped as well. However with an order book that includes 100,000 pre-orders and the factory capacity to easily accommodate more, RIDE stock may be an attractive EV play for investors willing to take on risk.

Articles by Thomas Hughes

Thomas Hughes was also looking at two EV stocks on the comeback trail. In this case, Hughes thinks it’s time for Nikola (NASDAQ:NKLA) and Fisker (NYSE:FSR) to get a second look from investors. The two companies went public through a SPAC. Investors have started to shy away from those companies, but Nikola and Fisker are on track to meet their goals which is something investors love to see. Another beaten down stock that looks like its recovering is the cannabis company, Cronos (NASDAQ:CRON). Despite some short-term headwinds to revenue growth, Hughes points out that the company’s “revenue is growing, its margins are improving, and sustained profitability is closer than ever before.” That’s a recipe that investors can believe in. Hughes also directed our readers to four penny stocks that look attractive for investors who enjoy the risk-reward opportunities that penny stocks provide.

Articles by Nick Vasco

Nick Vasco was informing readers about the opportunity that is presenting itself with Wix.com (NASDAQ:WIX). The cloud-based development platform provider has benefited from companies that are prioritizing their online operations, particularly ecommerce, in the midst of the pandemic. But the real opportunity for WIX stock will occur if the company is successful in turning its free users into paid subscribers. And speaking of subscriptions, Splunk (NASDAQ:SPLK)may finally be ready to break through a resistance level now that it is showing investors that its shift to a subscription model is showing long-term benefits. And for speculative investors, Vasco suggested taking a look at Gap (NYSE:GPS). A disappointing earnings report is a reminder that this is a retail stock that still may need to prove it to you. But analysts like the guidance that the company gave. Vasco advises interested traders to watch the technicals and pick their price.

Articles by Sam Quirke

It was fun while it lasted. That may be the feeling around the executive offices at Rocket Companies (NYSE:RKT). Sam Quirke pointed out that the company got caught up in a Reddit-like squeeze this week and the company’s shares briefly soared. But the crash has been equally as steep despite the company posting solid earnings during the last week of February. Long-term RKT stock looks like a great buy if you can stomach this period of price normalization. A stock that may be running out of juice is Wayfair (NYSE:W). As Quirke points out, Wayfair was a huge pandemic winner and reversed a year-long downward trend. The company still looks to be relevant in the post-pandemic e-commerce economy, but shares are looking a bit tired. Quirke was also advising caution with the online insurance provider, Lemonade (NYSE:LMND). The company reported disappointing earnings, but still appears to have a solid long-term outlook. But Quirke advises investors should wait to make sure LMND stock has reached a bottom.

Articles by Chris Markoch

Chris Markoch was wondering why AutoZone (NYSE:AZO) stock was falling after it reported a double beat in its earnings report. As Markoch theorizes, how you feel about the economic recovery may be how you feel about the company’s stock.  Dollar Tree (NASDAQ:DLTR) is another stock that started to drop after earnings. In this case, Markoch writes, the drop wasn’t necessarily unwarranted but overdone. And the market seems to be making corrections that support the company’s growth forecast. The analysts are not as optimistic about Smile Direct Club (NASDAQ:SDC). Even though the company reported a double beat, analysts don’t like the guidance from the company and seem to be wary of the company’s growth prospects in a post-pandemic world.

Articles by Steve Anderson           

It’s good to hear some encouraging news out of the retail sector. Steve Anderson writes that the market got that kind of news from American Eagle Outfitters (NYSE:AEO). The company’s stock is rising on the back of a double beat in its earnings report. Strong online sales and a reduction in some of the company’s typical brick-and-mortar expenses were a big help. Of course, analysts will want to see if this trend continues when stores are fully open, but right now AEO looks like a solid recovery stock. It’s perhaps just as surprising to hear disappointing news from an EV company, but that’s what Nio (NYSE:NIO) delivered to investors. The stock price has been cut nearly in half since mid-February, but Anderson points out that the selling may be overdone