MarketBeat: Week in Review 5/24 – 5/28

All eyes were on the personal income and spending data that was released on May 28. Markets ticked up slightly after the report showed that personal income dropped by $3.21 trillion (over 13%) in April. Further results showed that real disposable personal income (DPI) dropped over 15% and real personal consumption expenditures (PCE) was essentially flat. All of this is having a negligible effect as investors seem to want to digest the data heading into the long weekend. Next week will be a short trading week, but 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                                                                                                                

There can be strength in numbers. That’s what Sean Sechler reminds investors in his article about buying stocks that have recently received analysts’ upgrades. In this case, more is better. And the stocks that Sechler recommends have received multiple recent upgrades and/or price increases. Another sound investing strategy is to buy stocks in companies that recently reported strong earnings. Earnings season brings out speculators. Sechler reminds investors that while speculators often jump into companies prior to earnings, they can be in for a loss if the earnings report doesn’t meet expectations. By contrast, these are companies that have proven that they have a revenue and earnings outlook that is worth your investment capital. And Sechler also reminds investors that diversification means looking at international stocks. In this case, Sechler recommends three European stocks that are showing strong growth .

Articles by Jea Yu                                                                                              

AT&T (NYSE:T) is a stock that investors have loved to hate in the past few years. And unfortunately, as Jea Yu wrote, the company’s recent announcement of a deal to spin-off its WarnerMedia division into a combined entity with Discovery Networks (NASDAQ:DISCA).  However, the company also cut its dividend and Yu says the patience of investors is running out. On a brighter note, Yu was looking at SolarEdge Technologies (NASDAQ:SEDG). The solar sector has dropped in 2021 as investors begin to realize the growth in the sector is real, but won’t happen as rapidly as expected. However, as Yu writes, risk-tolerant investors can stake a position in the stock as long-term catalysts remain in place. Yu also pointed bargain hunters to an opportunity in 5G. Optoelectronics products maker NeoPhotonics (NASDAQ:NPTN) stock has dropped after posting wide losses and receiving downgrades by analysts. But with 5G demand expected to ramp up late in 2021, risk-tolerant investors can buy the dip on NPTN stock.

Articles by Thomas Hughes

Costco (NASDAQ:COST) was one of the big winners during the pandemic. But as Thomas Hughes writes, despite a favorable long-term outlook, COST stock currently looks to be overvalued. That doesn’t appear to be a problem for AutoZone (NYSE:AZO) which looks to have dropped far enough to be a good buying opportunity. The company is benefiting from multiple catalysts as it moves further in 2021. Hughes was also looking at Zscaler (NASDAQ:ZS), an IT security company that is bucking the trend of the sector. While analysts are finding it hard to believe that companies can continue their pandemic-fueled growth. However Zscaler is bucking that trend and continuing to deliver strong earnings.

Articles by Sam Quirke

It’s been a generally good season for the retail sector and Sam Quirke writes that Abercrombie & Fitch (NYSE:ANF) has been no exception.  Like many retailers, Abercrombie is benefiting from a commitment to digital sales that led to ANF stock gapping up 7% despite the stock already being up 500% since when the pandemic began. Cloud analytics companies have been plummeting after their run-up during the pandemic. But as Quirke writes few have been punished as much as Splunk (NASDAQ:SPLK). However after such a steep sell-off, it may be time for investors to hit the buy button. Another stock that is looking to be a good buy is Ford (NYSE:F). As Quirke writes, perhaps better late than never, Ford is embracing electrification and is becoming a strong value in the EV sector.

Articles by Chris Markoch

Chris Markoch was writing about the recent strength in retail stocks but offering investors different guidance. In terms of Burlington Stores (NYSE:BURL), Markoch says investors shouldn’t be concerned that the company is running out of gas after posting strong gains during the pandemic. The company’s slow and steady strategy for adding new stores is on track and looks very sustainable. On the other hand, Markoch cautioned that while Dick’s Sporting Goods (NYSE:DKS) looks like a buy after a strong earnings report, investors may want to wait for a more opportunistic pullback.

Articles by Kate Stalter                                                                           

Over the last twelve months, a number of companies have chosen to go public while eschewing an initial public offering (IPO). Kate Stalter writes that the most recent example of this is ZipRecruiter (NYSE:ZIP). The company went public via a direct listing, and analysts like what they see. The stock is surging higher as the online job seeking space looks to be a dominant theme in 2021. Another theme in 2021 continues to be the global chip shortage. To that end, Stalter was writing about Nvidia (NASDAQ:NVDA). NVDA stock is moving higher after the company reported strong earnings and, more importantly, issued stronger guidance for the second quarter. And as retail earnings wind up, Stalter was looking at a tale of two discount stores. Shares of Dollar Tree (NASDAQ:DLTR) and Dollar General (NYSE:DG) are moving in different directions after both reported strong earnings. Apparently analysts liked the outlook from Dollar General better as DG stock is moving higher while DLTR stock is falling.