MarketBeat: Week in Review 5/17 – 5/21

After a midweek selloff, the major indexes are trying their best to finish the week in the black. One of the catalysts was a drop in unemployment claims. As further evidence that the economy is reopening in earnest, retail stocks reported generally strong earnings this week. The same can’t be said of Bitcoin and other cryptocurrencies that saw a sharp correction this week. It’s too early to tell if that selloff is part of a larger story. In the meantime, it’s a good reminder to investors that over time, the fundamentals still matter. While many institutional investors may “sell in May and go away,” the MarketBeat team of writers will stay on top of the stocks and the stories that are moving the market. Here’s a look at some of the stocks they analyzed this week.

Articles by Sean Sechler                                                                                                                

While it can be misleading, it’s never a bad idea to see what the “smart money” is doing. That was the idea that Sean Sechler was conveying to investors as he combed through 13F reports to give our readers three stocks that hedge funds bought during the first quarter of 2021. Sechler was also reminding buy-and-hold investors about the advantages that real estate investment trusts (REITs) can provide for a portfolio. Sechler identified three REITs that buy-and-hold investors can buy for long-term returns. And it’s impossible to deny that the American economy is reopening quickly. Sechler gave investors three stocks that appear well positioned to take advantage of the recovery.

Articles by Jea Yu

The reopening of the global economy is bolstering some narratives and changing others. For example, Jea Yu writes about Transocean (NYSE:RIG). The offshore oil and gas drilling company has faced brutal selloffs in the last few years. But as demand for oil increases, traditional fossil fuel stocks are making a comeback. And that means RIG stock is beginning to present pullback opportunities for investors. On the other side of the fossil fuel issue, solar stocks have been tumbling as part of the broad selloff in electric vehicle and alternative energy stocks. Still, Yu sees Sunrun (NASDAQ:RUN) as a solid play in the solar sector. For investors looking at other oversold stocks, Yu likes the wearable components maker, Kopin (NASDAQ:KOPN) as a play in the augmented reality/virtual reality sector.

Articles by Thomas Hughes

By now, most investors are aware (some painfully aware) of the bubble that emerged in electric vehicle stocks. As the correction in these stocks continues, Thomas Hughes points out four EV names that are trading with high short interest which makes them candidates for short-covering rallies. Hughes then went on to write an expanded article on one of his picks, Fisker (NYSE:FSR). The company just delivered earnings that show steady progress that belies the high short interest. This means it may be time for investors to rev up FSR stock. On a more cautionary note, Hughes was looking at Walmart (NYSE:WMT). After a blowout quarter, Hughes is wary regarding what the retailer can do for an encore. With that said, Hughes advises investors to be careful in taking a position in WMT stock.

Articles by Sam Quirke

Snowflake (NYSE:SNOW) was one of the hottest stocks on the IPO market in 2020. But as 2021 has shown investors, what goes up rapidly can go down just as quickly. But now, writes Sam Quirke, institutional investors are beginning to add to their positions in SNOW stock. That means now is the time for investors to take a position in the data warehousing company. Another tech company that is showing signs of making a recovery is Salesforce (NYSE:CRM). As Quirke writes there are macroeconomic arguments against the e-commerce facilitator, but right now bullish analysts and investors seem to be in control. Quirke was also taking a look at Disney (NYSE:DIS) after the company delivered earnings last week. Despite the softening in Disney+ subscribers, Quirke still suggests Disney is a buy the dip stock for its long-term growth opportunity.

Articles by Chris Markoch

Earnings season has its own rhythm. This week was “retail week.” Chris Markoch wrote about three retail stocks that may fly under the radar, but deserve a look as potential buying opportunities. Markoch was also looking at the biotech sector and specifically iBio (NYSEAMERICAN:IBIO). The company recently reached a favorable resolution in a lawsuit involving intellectual property of its plant-based Fast Pharming technology. With that behind it, risk-tolerant investors should now consider the potential for iBio to draw interest as a “next generation” Covid-19 vaccine manufacturer. Another stock that Markoch believes may merit a closer look from investors is Golden Nugget Online Gaming (NASDAQ:GNOG).  The company continues to exceed expectations, but GNOG stock lags behind other gaming stocks.

Articles by Kate Stalter                                                                           

Kate Stalter was writing about how supply and demand was playing out in different ways as the global economy reopens. Stalter writes that bullish investors might look to the steel industry which continues to be a red hot performer after strong growth in 2020. On the other hand, solar stocks have dropped along with many other categories in the renewable energy sector. Stalter outlined the reasons behind the drop in solar stocks. It’s not a question of demand; supply can’t keep up. And until that changes, solar stocks are likely to continue to underperform the market. Stalter was also writing about the troubles engulfing Under Armour (NYSE:UA). The performance apparel retailer’s stock is dropping after an unfavorable court ruling, but as Stalter writes that’s not the primary reason UA stock is losing its appeal.