MarketBeat Week in Review – 6/4 - 6/9

Key Points

• Investors were cautiously optimistic to close the week with the S&P 500 moving out of bear market territory. 
• This is still a range-bound market. 
• Next week will be a market mover as investors get the latest readings on inflation, interest rates, and consumer confidence.     
• Here are some of the most popular articles from this week.

Markets closed the week in a state of cautious optimism. The S&P 500 is officially out of bear market territory but, in the words of another Fed chairman, this is no time for “irrational exuberance.” The market is still range bound. The immediate question is whether an S&P index at 4,300 is the top or the middle of that range.  

Investors now wait for the latest data on inflation and interest rates. They won’t have to wait long. The May consumer price index (CPI) reading comes out on Tuesday followed by the producer price index (PPI) reading on Wednesday. That’s also the day the Fed will announce its decision on interest rates. Investors will also get a read on manufacturing, oil inventories, and at the end of the week the latest read on consumer confidence.  

It’s going to be a busy week, and the MarketBeat team will have every angle covered. Here are some of the most popular articles from this week.  

Articles by Jea Yu 

Investors continue to plow money into artificial intelligence (AI) stocks. One of the biggest beneficiaries is Samsara, Inc. NYSE: IOT. This is a company that specializes on developing Internet of Things (IoT) solutions that are powered by AI. As Yu writes, IT stock is up 135% in 2023 and may have higher to go after beating earnings guidance and raising its outlook. Turning his attention to the stickiness of revenge travel, Yu wrote about the state of airline stocks and how investors should think about investing in airline stocks in a post-pandemic world. Yu also wrote specifically about American Airlines Group, Inc. NASDAQ: AAL which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels.  

Articles by Thomas Hughes 

One of the biggest news items this week came when Apple, Inc NASDAQ: AAPL debuted its Vison Pro AR/VR headset. And while investors are pondering what it may mean for Apple, Thomas Hughes suggests you take a look at a company like GitLab NASDAQ: GTLB. As Hughes writes, GitLab is “one of the leading AI-powered DevSecOps platform” which will give it many opportunities to increase revenue and market share. If you’re looking for something a little safer, Hughes explains why Verizon Communications, Inc. NYSE: VZ has a dividend yield of over 7%, but the stock is far from a yield trap and, in fact, may be too good to pass up. And as many investors may be hitting the road this summer, it’s a good time to check in on a company like Thor Industries, Inc. NYSE: THO. The company just delivered an earnings report that showed that the floor for RV sales may be higher than analysts expected. Hughes advises investors may want to wait a bit before taking THO stock on a drive, but it does pay a safe dividend if you’re looking for a safe stock for the summer. 

Articles by Sam Quirke 

The reality of electric vehicles is starting to live up to the promise. And that’s why EV stocks are still relevant to investors with a long-term focus. That was Sam Quirke’s message as he pointed investors to three promising EV stocks for investors to put on their watchlist. None of these companies will threaten Tesla, Inc. NASDAQ: TSLA for market share any time soon, but now is a time to think about which companies are going to be in that next tier. And speaking of Tesla, Quirke wrote about why the company’s rally within a rally may still have room to run. And while the big tech names are driving the market forward, Quirke was taking a look at three mid-cap stocks that investors probably have not heard of but should. Mid-cap and small-cap stocks tend to lead big rallies, and this may be one of those times.  

Articles by Chris Markoch 

Dollar General Corp. NYSE: DG sent shock waves through the market when it noted that its target consumer was showing signs of distress. But as Chris Markoch writes, the company’s earnings report says more about the state of the consumer than a fundamental flaw with the company which may make it a buy-the-dip candidate for patient investors. And keeping his eye on the dollar store sector, Markoch also wrote about Five Below Inc. NASDAQ: FIVE that may be heading to an all-time high. The discount chain saw its shares rally as new store openings helped drive up the overall transactions even as the total dollar value of those transactions was lower.  

Articles by Kate Stalter  

Earnings growth is one of the most accurate predictors of stock price growth. And Kate Stalter explains to investors how that narrative is playing out with Shopify Inc. NYSE: SHOP. The stock is rallying on expectations for earnings growth of 715% in 2023. As Stalter writes, this jump comes after a recent consolidation which is a signal that institutional investors still believe in the stock. Stalter was also looking at two areas of concern for investors: regional banks and real estate. Although concerns still exist about the banking sector, the potential for new capital requirements makes the case for three undervalued regional banks even stronger. And even in the beaten-down real-estate sector, Stalter points out two undervalued real-estate stocks that are offering good value for investors even as their stock price has recently moved higher.  

Articles by MarketBeat Staff 

This week, the MarketBeat staff was on the hunt for stocks that offer value wherever investors may find them. And you might be surprised to find that even at a price tag of over $2,000 a share a stock may offer good value. But that’s exactly the case our staff made for two stocks that have lofty share prices but are still undervalued. The staff also had their eye on a more traditional metric like price-to-earnings (P/E) ratio in looking at two Dow stocks that offer great value at less than 10x earnings. Investors can even find value in stocks that are cutting their dividend. While this is generally seen as a sign a company is in financial distress, it can also be a savvy, short-term move that will lead to a better tomorrow as is the case for these three stocks who just cut their dividends.