MarketBeat: Week in Review 3/28 – 4/1

The market gains of the last month can’t mask that this has been a bad quarter. The S&P 500 Index is down nearly 5%.  And the DAX Index which measures European stocks is down over 8%. But is this just a bear market rally or the beginning of something better? High inflation and the ongoing war in Ukraine would argue that the halting recovery will continue. In the meantime, a solid jobs report gave the bulls something to chirp about. The market will have a brief pause before first quarter earnings arrive in mid-April. Corporate earnings will also be another data point for the Fed to consider in its pledge to increase interest rates by 50 basis points in both May and June. The second quarter has started, and the MarketBeat team will be watching the stocks and stories that are moving the markets.

Articles by Sean Sechler                                                                                                                                                                

Timing the market often does more than good to a portfolio. A better approach, says Sean Sechler is to think about being right, rather than being first. And that means buying beaten-down stocks after you see that buyers are heading back in. You may not hit the absolute bottom, but you have a higher likelihood for a profitable trade. Another way to help ensure you make money is to buy stocks of companies that are leaders in their respective sectors. Sechler gives investors three industry-leading Dow stocks that fit the “best of the best” label. And for investors who are still hunting for growth, Sechler looks at three clean energy stocks to help you take advantage of our nation’s shift away from fossil fuels.

Articles by Jea Yu

Tech stocks continue to face an uphill road in 2022. But the market is beginning to make exceptions for companies that offer a distinct advantage. That may be the case with Splunk (NASDAQ:SPLK) which operates in the fields of data analysis and cybersecurity. The company just posted stellar earnings and upped its guidance. That has SPLK stock on the rise, but Jea Yu believes there’s still room for opportunistic investors to jump in. On the other end of the spectrum, Yu was looking at Big 5 Sporting Goods (NASDAQ:BGFV). Like many retailers, the company is facing tough year-over-year comps against the pandemic. Nevertheless, with short interest rising and the company launching a stock buyback program and a dividend increase, Yu believes that BGFV stock is an opportunistic investment. Yu was also analyzing UnitedHealth Group (NYSE:UNH) which is growing earnings and revenue and lowering its operating costs. Yu believes now is the time for investors to buy shares of this leading health insurance stock.

Articles by Thomas Hughes

Thomas Hughes was shopping for bargains and found a few stocks for investors to consider. First up, Hughes was looking at PayPal (NASDAQ:PYPL), one of the most downgraded stocks of the quarter. However as Hughes points out, while it does appear that the pandemic bubble has burst, the sell-off looks to be just about complete. This leaves room for PYPL stock to move higher with more realistic price expectations. Hughes was looking at the rise in Five Below (NASDAQ:FIVE) but pointing out that, in this case, the price movement is because analysts are upgrading the stock despite the company’s disappointing earnings report. And for investors that are looking for a solid value stock, investors can look to Walgreens Boots Alliance (NASDAQ:WBA). Walgreens is facing tough pandemic comps, but the company still is beating on earnings estimates and its outlook hints at solid growth.

Articles by Sam Quirke

Sam Quirke was not shy about looking at two growth stocks that may be opportunistic buys even in a volatile market. In the case of Nio (NYSE:NIO), Quirke points out that analysts are turning more bullish on the stock even as NIO stock is still down 70% from its pandemic highs. The key for investors to watch will be if the company is successful at overcoming supply chain challenges and meeting its delivery targets. If it does, NIO stock could be the buy of the year. Quirke is also looking at Lululemon (NASDAQ:LULU) which delivered another stellar earnings report. This appears to be an example of why investors shouldn’t be scared off by a premium valuation when you’re looking at a premium stock.

Articles by Chris Markoch

Chris Markoch gave investors a yes, a no, and a maybe. The yes was General Mills (NYSE:GIS) that Markoch writes is proving itself to be a fortress stock. The company has been able to pass along some of its costs to consumers while not impacting earnings and revenue. That is likely to continue which makes GIS stock a solid buy in the consumer staples area. The no was McCormick (NYSE:MKC). The company is in the consumer staples category. However, the company is seeing less consumer spending as the economy reopens. And even if consumers cut back on discretionary spending, the company faces competition from less-expensive house labels. The maybe is Sportsman’s Warehouse (NASDAQ:SPWH). The sporting goods company derives over 50% of its revenue from sales of firearms and ammunition, and experts believe these sales may have peaked. But the company does have an attractive valuation. And if firearm sales stay strong, SPWH stock may be a sneaky buy.

Articles by Melissa Brock

Melissa Brock was looking at two sectors that were among the strongest in 2021 but have fallen on hard times in 2022. One is the financial technology (i.e. fintech) sector. This sector has been caught up in the flight from tech stocks. But the sector strongly appeals to millennials and Gen-Z consumers who are looking for alternative from traditional banks. Another beaten down sector that Brock was looking at is electric vehicles. This sector has been dragged down due to supply chain issues that are likely to delay production. However, Brock identifies four EV stocks that are offering opportunistic investors with a buying opportunity at deep discounts. And every consumer knows how much inflation is affecting grocery prices. That’s why now would be a time to look at grocery stocks. Brock gives investors a list of four grocery stocks that will remain good defensive stocks to own as other sectors may struggle.