MarketBeat: Week in Review 6/20 – 6/24

All of the major indexes look to close the week in positive territory for the first time in several weeks. Ironically, it appears that the more that investors hear from Federal Reserve chairman Jerome Powell, the more convinced they become that the economy may already be in recession. And if we are, then perhaps an investable bottom is forming. Still, market timing is an imperfect science. That’s why we believe that investors should take prudent actions. Our mission at MarketBeat is to guide you to the opportunities that exist no matter what is happening in the market. Here are some of the stocks our analysts were looking at this week.

Articles by Jea Yu

This week, Jea Yu pointed investors to opportunities in several sectors. In the retail sector, Yu notes that shares of Lululemon (NASDAQ:LULU) appear to be on sale despite the company reporting strong revenue and earnings. The company also continues to boost its guidance when a number of companies have been lowering expectations. In the travel and entertainment sector, Yu suggests that investors may want to look at Six Flags Entertainment (NYSE:SIX). The company’s stock performance is not reflecting the strong revenue growth that is occurring as pandemic restrictions are lifted. And for fans of the technology sector, Yu suggests taking a look at Ciena Corporation (NYSE:CIEN). The company’s stock is down 43% for the year. However, as a leader in providing the optical fiber that is needed for 5G infrastructure as well as cloud adoption, the stock may present an opportunity for risk-tolerant investors.

Articles by Thomas Hughes

One of the best strategies for investors of all risk tolerances in times of volatility is to invest in dividend stocks. Thomas Hughes gave investors two articles that highlighted different benefits of owning quality dividend stocks. First, many of these companies are defensive stocks which means that they offer products and/or services that are in demand whether the economy is growing or contracting. And Hughes also pointed investors to several Dividend Kings that show an ability to turn a profit quarter after quarter. Not only does this make a growing dividend a near certainty, it can help boost an investor’s total return in the face of inflation. However, Hughes also points out there are still significant risks in the market. And growth investors should look for clearer technical signals before believing the bottom is in for stocks.  

Articles by Sam Quirke

Sam Quirke was noting that the correction in stocks is creating potential opportunities in two stocks that at first glance don’t appear to have much in common.  On the one hand, Quirke was writing about Dollar General (NYSE:DG). The discount chain is seeing its stock price climb 30% in the last month which is in stark contrast to the S&P 500 index. And as Quirke points out, investors should get in on DG stock before institutional investors jump in. For investors with a higher risk tolerance, Quirke pointed out that Boeing (NYSE:BA) received a recent upgrade. That’s welcome news for shareholders of the beleaguered stock and could set investors up for a sizable gain.

Articles by Matthew North

This week, Matthew North explained why investors should be bullish on NXP Semiconductors (NASDAQ:NXPI). The chip maker is a major supplier to the automotive sector, specifically power control systems. And as anyone who has shopped for a car in the last two years can attest, demand far exceeds supply. That means demand for chips will remain strong, particularly as they are key components in all vehicles which continue to become computers on wheels. And this is even more the case with the growing shift towards electric vehicles.

Articles by Parth Pala

Parth Pala wrote a series of articles that highlighted the importance of diversification on an investor’s portfolio. And one way to do that is by investing in commodities. One of the best ways to do that is to invest in the stocks of companies that produce commodities. In the energy sector, Pala gave investors two midstream oil companies that stand to generate strong revenue in the next few quarters and have juicy dividend yields. If precious metals are appealing to investors, Pala made the case for three silver stocks that investors can add. And one are of the commodities sector that continues to remain strong is lithium. This metal will be needed in many of the most disruptive technologies of the next several decades. With that in mind, Pala gave investors three lithium stocks that present investors with exceptional buying opportunities.