MarketBeat: Week in Review 3/22 – 3/26

This week saw the markets continue to struggle to find a clear direction. The suspect at this point is inflation. The Federal Reserve has been begging inflation to show its face, and with rising bond yields and $1.9 in new stimulus (and potentially more to come), inflation may oblige. If that happens, the rotation away from growth stocks may accelerate. But that only means that some sectors will go down and others will go up. The key for you is to know the difference. And that’s where MarketBeat can help. Every week the MarketBeat staff is hard at work helping you identify and act on the trends that are moving the market. Here’s just some of what they saw this week.

Articles by Sean Sechler

Among other things, 2020 will be remembered as the year of the special purpose acquisition company (SPAC). As Sean Sechler points out there is a risk in investing in a SPAC before it announces the company it will bring public. A better approach is to wait until the target company is announced and invest after you perform your due diligence. With that in mind, Sechler is giving investors three post-merger SPAC stocks that are off to a great start. Sean Sechler was also eyeing dividend stocks, which provide consistent income and, ideally, a higher total return over time as the stock appreciates in value. But as Sechler points out, not all dividend stocks are created equal as he gave readers three dividend stocks that look to offer a great opportunity for income investors. And as growth stocks are losing a little bit of their luster, Sechler gave readers three consumer staples stocks that are offering investors a nice entry point and a generous upside.

Articles by Jea Yu

Jea Yu was looking at three of the most speculative sectors in 2021: renewable energy, cryptocurrencies and cannabis. In the renewable energy sector Yu suggested investors look at First Solar (NASDAQ:FSLR). The company has been the subject of recent analyst downgrades. However, it’s a profitable company that is well-positioned for the Biden administration’s decarbonization initiatives and Yu showed investors how to look for timely entry points. In the cryptocurrency sector, Yu suggested Canaan (NASDAQ:CAN) as an alternative to investing directly in any one digital currency. Canaan provides the mining equipment (specifically AI chips and mining rigs). And it’s not only a play on cryptocurrency. Its chips are also used in data center operations. Moving to the cannabis sector, the continued carrot of legalizing marijuana at the federal level in 2021 is underpinning hopes for a resurgence in cannabis stocks. If you’re an investor willing to take a speculative risk in this sector, Yu suggests looking at Canopy Growth (NASDAQ:CGC) as a best-of-breed play.

Articles by Thomas Hughes

Thomas Hughes was also eyeing the cannabis sector. In this case, Hughes likes Cresco Labs (OTCMKTS:CRLBF). Cresco is an integrated multi-state operator and this is where the action is at in the United States. As Hughes notes, Cresco is making all the right moves to prepare for what is likely going to be expanded into new markets preparing to legalize marijuana. Hughes was also advising investors about three small-cap medical stocks that have compelling narratives as attention begins to shift away from Covid-19. Finally, it wouldn’t be a week if one of us didn’t look at the meme stocks. And Hughes was looking at the OG meme stock, GameStop (NYSE:GME). The company reported disappointing earnings which as Hughes notes, supports the overwhelming opinion that there is no “there” there for this beleaguered retailer. With the bears firmly in control, Hughes advises investors to stay away from GME stock.

Articles by Nick Vasco

We may all be weary of the words “new normal,” but investors would be wise to remember that the pandemic has created some fundamental shifts in our society. Nick Vasco was looking at two stocks that were pandemic winners and are likely to show continued strength in 2021 and perhaps beyond. One of these companies was Trex (NYSE:TREX) which provides composite wood alternatives commonly used in an decks. The company’s stock is dipping after issuing ambiguous full-year guidance. However, as Vasco points out, even if the company comes in at the low end of its range, it will still be a good year. Vasco also believes Restoration Hardware (NYSE:RH) is poised for a strong 2021. While it’s unclear when, or if, office workers will return en masse, it’s clear that urban living is declining and homeownership is rising. Those trends bode well for the luxury furniture retailer. And Vasco was also looking at Intel (NASDAQ:INTC) after the news of its expansion plans in Arizona.

Articles by Sam Quirke

Sam Quirke had his eye on stocks that were recovering for two distinctly different reasons. In the case of Southwest Airlines (NYSE:LUV), the airline is one of the best positioned to get travelers in the air and LUV stock reflects that. It’s trading above pre-pandemic levels and as Quirke says as airline traffic begins to increase, Southwest is not an airline to bet against. Another group of stocks that are showing strength are the bank stocks, which tend to be one of the big winners in a higher rate environment. With that in mind, Quirke gave our readers three bank stocks that should stand above the rest. And Quirke was also looking at Adobe (NASDAQ:ADBE). The stock has been dropping as investors move away from growth stocks. However, as Quirke points out, after a bullish earnings report, the dip in ADBE stock presents investors with an exceptional opportunity.

Articles by Chris Markoch

Chris Markoch was the resident bear of the week as he had a negative outlook on several stocks. In the EV sector, Markoch cautioned retail investors from getting too excited about ElectraMeccanica Vehicles (NASDAQ:SOLO). There’s no guarantee that the company’s autocycle will garner mass adoption, particularly since it may have a smaller addressable market than first thought. Markoch also sounded a cautious tone on Blink Charging (NASDAQ:BLNK). The stock has failed to hold gains after some recent good news, and it will need much more revenue to justify its current valuation. Completing the trifecta of bearish outlooks, Markoch saw BioNano Genomics (NASDAQ:BNGO) as being a heavy lift for retail investors who believe the stock is worth what they are willing to pay for it. The company has a load of potential in the field of genomics, but the payoff looks to be years away.

Articles by Kate Stalter                     

Kate Stalter was directing investors’ attention to the energy sector which has become a “worst-to-first” investment play in 2021. Traditional oil companies are managing their production capacities to keep up with increased demand. And energy technology companies continue to scale their capabilities in the clean and alternative energy areas. Stalter gave investors three energy stocks that are showing technical strength as they continue to rise with the sector. Stalter was also looking curiously at three TV and radio stocks that are showing surprising strength in the digital everything era. And speaking of companies showing surprising strength, Stalter was advising investors that they may not want to give up on Best Buy (NYSE:BBY) which is in the early stages of pivoting to the new normal in retail shopping