MarketBeat: Week in Review 3/14 – 3/18

This week the markets temporarily reversed a bearish trend. You might call this a case of less bad news being good. The Producer Price Index (PPI) came in Tuesday. It showed inflation was still a problem, but it wasn’t as bad as it could have been. Then the Federal Reserve announced a 25-basis point increase in interest rates. This was expected as was the Fed’s forward guidance. And with oil prices moving off their recent highs, investors may be looking for a reason to buy some discounted stocks. But there’s evidence that much of the action is based on short covering and not real buying. In the weeks ahead, investors will find out if the rally will last. And the MarketBeat team will be tracking the stocks and sectors that are moving the market.

Articles by Sean Sechler                                                                                                                                                                

In every correction, there are still stocks and sectors that are beating the market. This week Sean Sechler was giving investors three strategies to help find these stocks. One way that Sechler wrote about was identifying breakout stocks. This means looking for stocks that are showing relative strength and attracting new buyers. And Sechler gives investors three stocks that are looking to break out right now. Another market-beating strategy is to look for international stocks. Not only does this provide diversification, but many of these stocks are outperforming U.S. equities right now. Sechler was also reminding investors that now is a good time to consider buying dividend stocks. And when you’re looking at dividend stocks, investors could do worse than to look for dividend aristocrats. These are stocks that have increased their dividend for at least the last 25 years.

Articles by Jea Yu

Russia’s invasion of Ukraine is causing global commodity markets to spike. That’s benefiting global fertilizer provider, Mosaic (NYSE:MOS). In the company’s last earnings report, the company is forecasting elevated commodity prices to keep demand for fertilizer at elevated levels which makes MOS stock an opportunistic buy. Yu also believes that investors should look at United Airlines (NYSE:UAL) even as the airline industry continues to face an uneven recovery. As Yu points out, the airline’s underlying business is recovering which means risk-tolerant investors can look to buy UAL stock if it finds a base of support. And Yu also points out that investors who are looking for a way to place the health care sector, should consider the pharmaceutical company GoodRx (NASDAQ:GDRX). The stock is trading at all-time lows despite continuing to add healthcare providers to the platform.

Articles by Thomas Hughes

When is a downgrade not a downgrade? In the case of many stocks, analysts downgrade a stock because they see “less good” performance in future quarters. But if the price target stays above the current price, the stock may still be a good buy. And that’s the case that Thomas Hughes sees with Shopify (NYSE:SHOP) stock. Hughes analyzes the rise in Shoe Carnival (NASDAQ:SCVL) stock. As Hughes points out, shares are moving higher based on a short squeeze, but the company’s recent results and outlook in addition to its dividend are adding reasons to buy SCVL stock. But not every recovering stock is a buy. That’s the case that Hughes sees with Jabil, Inc (NYSE:JBL). As Hughes points out, shares are moving up but it is not based on analyst conviction and advises investors proceed with caution.

Articles by Chris Markoch

While dollar stores have not been immune from the effects of inflation, Chris Markoch still believes Dollar General (NYSE:DG) is a good buying candidate. The reason is location. The company’s strategy of being “local” to their target audience lives makes it a good play as consumers look for ways to save gas. Another stock that Markoch saw as a good watchlist candidate was Warby Parker (NYSE:WRBY). The direct-to-consumer movement has lost some shine with investors. However, the demand for curated, convenient services remains strong. However, in the case of Warby Parker so does short interest. For a stock to avoid, Markoch still isn’t buying the GameStop (NYSE:GME) pivot. The company is behaving like a startup, but it looks way too expensive at this time.

Articles by Sam Quirke

Sam Quirke was reminding investors of the axiom to buy when others are fearful. With that in mind, he was pointing investors to the opportunity in Chinese stocks and gave investors three such stocks that have been severely beaten down, but have recently been showing signs of recovering. Quirke was also looking at stocks that were making significant gains after the Federal Reserve’s announcement. While it’s too early to say this rally has legs, Quirke points out that when stocks bounce like this, it’s often a sign that they were oversold.

Articles by Melissa Brock

Buying stocks in the market’s hottest sectors is a good way to profit in a down market. With that in mind, Melissa Brock points investors to several stocks in sectors that have favorable market sentiment. For example, semiconductor stocks continue to outperform the market as record demand will continue to be a catalyst for the sector. Nuclear energy has been in the news for different reasons. But as a clean energy solution, nuclear energy offers benefits and Brock gave investors three nuclear stocks that may be opportunistic buys. Brock was also looking at the sporting goods sector which continues to show strength as the economy reopens. In fact, through October 2021, sporting goods sales were up 11% from all of 2020. This sector still has legs and Brock gives investors four sporting goods stocks that look like good buys at this time.