MarketBeat: Week in Review 5/30 – 6/3

The jobs report is taking the spark out of markets. As the markets open, all the major indexes are down. And investors aren’t getting relief from cryptocurrencies or precious metals. They’re dropping as well. The question continues to be that there are too many questions. How many rate hikes are really in store? Will there be a recession? What is the outlook for corporate profits? These are just a few questions that are weighing on the future direction of the markets. However, there’s money to be made in any market. And you can count on the MarketBeat team to help point you in the right direction. Our analysts look at what and more importantly why stocks are moving the way they are. Here are some of the stocks they were looking at this week.

Articles by Jea Yu

Jea Yu analyzed three beaten-down stocks this week and believes each creates a buying opportunity. The first of the three stocks is Sonos Inc. (NASDAQ:SONO). The maker of audio components saw a boom in revenue and earnings due to homeowners making investments in their homes. That is reflected in a backlog that should continue through the remainder of this year. It’s a similar story for JFrog (NASDAQ:FROG). The software development applications platform is citing a 60% increase in customers which is not being reflected in a stock price that is down 70% from its post-IPO high. Yu was also looking at the current situation with Blink Charging (NASDAQ:BLNK). The company’s stock is falling despite the company posting strong top-line growth. However, the need to build out our national charging infrastructure should be a bullish long-term catalyst for BLNK stock.

Articles by Thomas Hughes

Long-time MarketBeat subscribers know that we believe investors should pay attention to analysts’ recommendations as an indicator of future price movement. With that in mind, Thomas Hughes gives investors a list of three stocks that are getting upgraded by analysts. Not surprisingly, energy is the most upgraded sector, but Hughes dug deeper and helped find some additional options for investors. Turning to the semiconductor sector, Hughes was writing about Broadcom (NASDAQ:AVGO). The stock has been beaten down for the last several quarters, but Hughes provides analysis for why AVGO stock looks poised to reverse. Hughes was also looking at the strong quarter delivered by Ulta Beauty (NASDAQ:ULTA). In fact, as Hughes puts it, ULTA is one mall stock that investors can believe in, particularly with positive margin growth.

Articles by Sam Quirke

The problem with bubbles is that eventually, they pop. This was the case with many stocks last year. And Sam Quirke was looking at one of the most beaten-down stocks, Roku (NASDAQ:ROKU). As Quirke writes, the company is benefiting from a bullish upgrade that is being supported by compelling growth in revenue and gross profit. Quirke was also looking at Lululemon (NASDAQ:LULU). Writing the day before the company reported earnings, Quirke wrote gave investors analysis to suggest that even with LULU stock back to near pre-pandemic levels, it may have more room to move higher.

Articles by Chris Markoch

Sometimes good stocks can still be good stocks, but may still not be good buys for a number of reasons. Chris Markoch was writing about two such stocks this week. The first is Medtronic (NYSE:MDT). The company continues to deliver remarkably consistent revenue and earnings that are evenly spread throughout its business units. But bearish analyst sentiment is likely to continue to cap the growth of MDT stock. With Chewy (NYSE:CHWY), Markoch points to short interest as a reason that investors may want to wait on buying CHWY stock. The company is pointing out strong revenue growth per customer and churn is at all-time low rates. But with short interest over 20%, investors may want to wait to get a clear picture of the stock’s valuation.