MarketBeat Week in Review – 5/27 - 5/31

Key Points

• Markets closed the week quietly after a sharp sell-off in a holiday-shortened week.  
• Earnings season is winding down, but investors will have several key economic reports to digest in the coming weeks.  
• Here are some of our most popular articles from this week. 

The major exchanges closed the week quietly after a sharp sell-off to start the week. Friday’s reading of the April 2024 Personal Consumption Expenditures (PCE) index aligned with expectations. This may have prevented a sharper sell-off, but it was nothing that would signal a change in Fed policy (i.e., lower interest rates) any time soon. 

The short-term concern is whether the markets have fully priced in the idea of no interest rate cuts until December at the earliest and possibly not until 2025. To help give stocks direction, investors will be waiting for the next round of economic data. That starts with the Jobs report on June 7 and the latest readings on consumer and producer prices the following week.  

As we enter what is historically a quieter time in the markets, we hope you’ll have time to recharge with family and friends. If you do step away, you can have MarketBeat with you 24/7 to help keep you informed on the stocks and stories that impact your portfolio. Here are some of our most popular articles from this week.  

Articles by Jea Yu 

Could a retail stock really match the performance of NVIDIA Corp. NASDAQ: NVDA? You might not think so, but Jea Yu points out that was the case with Deckers Outdoor Co. NYSE: DECK. Shares of the outdoor apparel company shot over $1,000 per share after its recent earnings report. And even with weak guidance, the stock is holding those gains on the strength of its popular, iconic brands. 

Yu also wrote about the recent growth in Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH). The cruise line’s stock had been lagging behind the sector but is moving higher after the company reported strong earnings and record bookings, and raised its full-year 2024 guidance for the second time.  

As the recent price action in stocks like AMC Entertainment Holdings Inc. NYSE: AMC shows, meme stocks are back. However, unlike in 2021, the short squeeze was short-lived, but Yu points out why it may be time to look at AMC stock as an investment and not just a trade.  

Articles by Thomas Hughes 

The price action in Salesforce Inc. NYSE: CRM after its earnings report shows you that one stock can have a major impact on the markets. However, as Thomas Hughes wrote this week, you don’t have to look too closely at the company’s earnings report to understand why the 25% drop in CRM stock could be a once-in-a-lifetime buying opportunity.  

We’re still in the early stages of the AI revolution. Hughes explained why that’s creating an opportunity for investors to consider a long position in companies that will be part of AI’s second wave. Hughes provided investors with a list of three stocks that analysts believe will be a part of AI’s second wave.  

If you’re considering investing in retail stocks, Hughes wrote about why the interest in Ross Stores Inc. NASDAQ: ROST shows why discount retail may be a sector to watch closely. Even at 24x earnings, the stock still looks like a bargain because it’s well-positioned to capture market share in today’s retail environment.  

Articles by Sam Quirke 

Should investors be concerned about the recent drop in Amazon.com Inc. NASDAQ: AMZN stock? As Sam Quirke writes, it looks like investors are taking some profits after the stock enjoyed a strong rally to start the year. Analysts support that opinion, showing a potential 35% upside for AMZN stock.  

Quirke also writes why bargain-hunting investors should consider American Airlines Group Inc. NASDAQ: AAL. The stock dropped sharply after the company lowered its earnings and operation margin guidance. However, analysts continue to stand by the stock, which they believe can have a significant upside. 

Articles by Chris Markoch 

While Salesforce had a rough week, the opposite was true for Pure Storage Inc. NYSE: PSTG. The stock shot up approximately 2% after a stellar earnings report and a bullish forecast for the rest of the year. Pure Storage provides flash memory-based server storage solutions that will be critical as demand for AI applications increases. As Chris Markoch writes, investors should consider getting in as analysts believe the stock may have much higher to move. 

Markoch also wrote about Hormel Foods Corporation NYSE: HRL, which gave up most of its 2024 gains after a mixed earnings report that showed softness on the top line. However, Markoch explains why this may be an overreaction fueled by high-frequency trading and why the company’s high-yield dividend could make HRL stock a buy for income-oriented investors.  

Articles by Ryan Hasson 

One key to active investing is knowing when to buy and when to sell. One way is to find a list of overbought and oversold stocks. This week, Ryan Hasson looked at both of these categories. For investors looking for oversold stocks ready to bounce higher, Hasson offered up three oversold stocks with bullish price targets and the added benefit of a high dividend yield. 

However, suppose you’re an investor in one of these three overbought stocks. In that case, Hasson writes why it may be a good time to consider taking profits as analysts forecast a broader market correction.  

And if you’re an investor who missed the first wave of artificial intelligence stocks, Hasson explains why the next wave of AI will be about the companies that are using AI in a transformative way and points you to five surprising AI stocks that are poised to disrupt their respective sectors.  

Articles by Gabriel Osorio-Mazilli 

One of the under-the-radar stories that could have a big impact in the energy sector was the merger between Chevron Corporation NYSE: CVX and Hess Co. NYSE: HES, which Hess shareholders voted on this week. However, Exxon Mobil Co. NYSE: XOM has a stake in Hess’ $11 billion oil reserves in Guyana. Gabriel Osorio-Mazilli explains why that means this merger isn’t as straightforward as it first looked and how investors can trade these stocks as the merger gets ready to close.  

Osorio-Mazilli also looked at PayPal Inc. NASDAQ: PYPL, which continues to be an underappreciated stock. However, the company is buying back shares and making changes to its platform, which is likely to change investor sentiment on PYPL stock.  

And now that earnings season is almost over, it’s a good time to look at stocks that are getting upgrades. Osorio-Mazilli writes about three stocks that analysts couldn’t wait to upgrade so you can see if they fit with your portfolio.