MarketBeat Week in Review – 5/8 - 5/12

Key Points

• Equity markets had another choppy week as investors come to grips with the effect of higher for longer interest rates.  
• Another bank failure and no progress on the debt ceiling negotiations are also weighing on investor sentiment. 
• Next week brings a new round of earnings reports with retailers leading the way; unfortunately, investors aren’t expecting the news to be bullish for stocks. 

Investors had another choppy week that highlights what could be a new normal for equity markets. Even reports that showed the pace of inflation is slowing weren’t enough to feed the bulls. That’s because investors are coming to grips with the idea of a hawkish pause by the Fed that may keep interest rates higher for longer.  

There were also concerns about another regional bank failure. This continues to highlight the fact that, for many investors, the market is not the only game in town when they’re looking for yield. And then there’s the debt ceiling kerfuffle. While it still seems likely that an agreement will be reached, the posturing on both sides may be weighing on investor sentiment.   

Next week investors will get a look at retail sales numbers including earnings reports from some of the nation’s largest retailers. It’s expected that we’ll hear more of the same (I.e. high inventory, weak growth prospects). If we do, investors can expect the market to continue to be range bound. But there are still opportunities to be found, and the MarketBeat team will be here to keep you informed. Here are some of the most popular articles from this week.  

Articles by Jea Yu 

Jea Yu was posing a question of interest to our readers. Is the Electric Vehicle Movement Losing Steam? There’s a lot to unpack in that question but it’s coming down to the fact that Tesla, Inc. NASDAQ: TSLA continues to have a huge lead in market share that will be an obstacle for everybody else. If you’re looking for a different way to play the EV market, Yu suggests looking at Shoals Technologies Group Inc. NASDAQ: SHLS which is an electrical balance of system (EBOS) solutions provider for several industries that are key to a renewable future. As Yu writes, you may not be that familiar with Shoals yet, but it may be time to give this mid-cap a much closer look. Another stock that Yu believes is worth a look is ImmunoGen Inc. NASDAQ: IMGN a biotechnology company who just reported promising phase 3 clinical trial results for its ovarian cancer drug Elahere. And for less risk-tolerant investors, Yu recommends looking at oil stocks – but rather than picking individual names investors may want to look at the Energy Select Sector SPDR Fund NYSEARCA: XLE. 

Articles by Thomas Hughes 

Speaking of electric vehicles, Thomas Hughes wrote about three electric vehicle companies who are all trying to carve out a niche in the market. Hughes writes that Rivian Automotive NASDAQ: RIVN, Fisker Inc. NASDAQ: FSR, and Lucid Group NASDAQ: LCID have all seen their stocks drop sharply in the last year. But in each case, the technicals are showing the bottom may be in and analysts give each stock an upside. Hughes was also writing about Palantir NYSE: PLTR that delivered one of the most anticipated earnings reports of this season. The company delivered its second consecutive quarterly profit and the stock shot higher, but Hughes notes that it may not be able to cross a technical hurdle without analyst support. Hughes was more bullish about the prospects for The Walt Disney Company NYSE: DIS. As Hughes notes, the stock is looking oversold and there are catalysts for the stock including the fact that the company may reinstate its dividend by the end of the year.  

Articles by Sam Quirke 

One of the strongest performing stocks in 2023 is that of The Trade Desk Inc. NASDAQ: TTD. And Sam Quirke explains why the rally may still have legs. That's because the company’s revenue and earnings are growing due to the company’s business model that allows marketers to get objective, transparent, and data-driven media buying on the open internet. That’s approach is a stark contrast to the walled garden approach taken by its competitors. Quirke was also looking at the opportunity for Coinbase Global Inc. NASDAQ: COIN. The stock has been closely approximating the performance of Bitcoin CCC: BTC. However, Quirke points out that caution is advised as the company still has regulatory hurdles to clear. And for investors looking for diamonds in the rough, Quirke did some digging and came across Green Brick Partners Inc. NYSE: GRBK. It’s a homebuilder stock with a market cap of just $2.4 billion. But with a 175% return since last November, GRBK stock may be one of the best opportunities you’ve never heard of.  

Articles by Kate Stalter  

Every investor understands the importance of diversification. But as Kate Stalter writes, there are six tech stocks that are driving the market this year. And those stocks are closely held by several prominent index funds. This means investors may not be getting the diversification they think they are. One of those stocks is Nvidia Inc. NASDAQ: NVDA. And as Stalter writes, your decision on whether to buy, sell, or hold NVDA stock may depend on your risk tolerance and investment horizon. However, if you’re looking for a stock to sink your teeth into right now, Stalter writes that Darden Restaurants Inc. NYSE: DRI may be worth a look after its acquisition of Ruth’s Hospitality Group NASDAQ: RUTH. The stock wasn’t getting much of a bump immediately after the announcement, but with earnings expected to increase, Stalter sees DRI stock as one to watch.  

Articles by MarketBeat Staff 

In 2022, value stocks made a comeback as growth stocks fell out of favor with many investors. But as the MarketBeat staff pointed out, growth stocks are making a comeback in 2023 and the staff offered three growth stocks that are continuing to widen the spread between growth and value. Investors looking for growth may also want to look at mid-cap stocks. Several of these stocks have started to report earnings and our staff came up with three mid-cap stocks that look like attractive buying opportunities. But while growth stocks are doing well, value stocks aren’t going away, particularly if recession fears are on the rise. And our staff gives you three recession-proof stocks that pay you a nice dividend to ride out whatever is next.