MarketBeat: Week in Review 8/1 - 8/5
August 06, 2022 at 01:00 AM EDT
The jobs report for July came in hot. Nearly twice as many jobs were created than were forecast. That is having a predictable effect for investors that are following the market. That is, good news is bad news. In this case, the hot jobs number is likely to dispel investors of any notion that the Federal Reserve will take a more accommodative stance to monetary policy anytime soon. August tends to be a month of low volume so the long-term repercussions of this move may not be known for some time. In the meantime, you can count on the MarketBeat analysts to provide insight on the stocks and the stories that are moving the market. Here are some of the articles we believe you should look at this week.
Articles by Jea Yu
As part of our explainer series, Jea Yu educated investors on how to find support and resistance levels for a stock. These levels are important to investors because they are technical indicators that show if a stock is overvalued or undervalued. Yu is also looking at AutoNation (NYSE:AN) which is up 4% in 2022. Yu notes that the company hit an all-time high in quarterly profits in its most recent quarter and is seeing growth in the mid- and premium car segments. Another stock that is outperforming the market is BJ’s Wholesale Club Holdings (NYSE:BJ) which, as Yu notes, is up 3% for the year but may have more room to grow as consumers flock to warehouse clubs in an effort to mitigate the effects of inflation.
Articles by Thomas Hughes
Investors continue to seek out value stocks and this week Thomas Hughes identified two high-yield deep value stocks that are tied to the still growing RV market. For investors looking for some growth to go along with value, Hughes was analyzing the current state of play for Energy Transfer (NYSE:ET). As Hughes notes, the company’s “diversified approach to energy and its reliance on fee-based income make it stand out from other energy companies.” Hughes was also analyzing the news that Tesla (NASDAQ:TSLA) is issuing a three-for-one stock split. As Hughes points out, the stock split may provide the juice the electric vehicle market needs to continue its resurgence.
Articles by Sam Quirke
Amazon (NASDAQ:AMZN) has been a shining star in this earnings season. Like another tech stalwart, Apple (NASDAQ:AAPL) Amazon delivered a report that was outstanding, not just “less bad.” And as Sam Quirke notes, that is pushing AMZN stock up 35% off its 2022 lows and sets up the tech giant to be one of the best performing stocks for the third quarter.
Articles by Chris Markoch
In the last week of July, oil and gas companies confirmed what many investors already knew. Oil and gas companies delivered strong revenue and earnings. While many eyes are on the big names, Chris Markoch was advising investors to take a closer look at Devon Energy (NYSE:DVN). The company delivered a strong earnings report that included a hefty boost in free cash flow that supports the company’s already strong dividend. Markoch was less optimistic on the outlook for Intel (NASDAQ:INTC). Read his article for the one question that investors should be asking themselves before considering buying INTC stock. And for investors with a more speculative appetite, Markoch wrote about CRSPR Therapeutics (NASDAQ:CRSP). The company is a leader in the emerging sector of gene editing. However, as Markoch points out investors will need patience because the long-term payoff may be years away.
Articles by Matthew North
Matthew North was eyeing two beaten-down growth stocks to see if a reversal may be on tap. For Roku (NASDAQ:ROKU) the bullish case is that the “less bad” report from Netflix (NASDAQ:NFLX) may be a signal that it’s time to dive in on ROKU stock. But investors should take heed, the stock still looks overvalued. The same can be said for Nike (NYSE:NKE) which is down over 30% in 2022 but still appears to be overvalued by technical measures. However, as North writes, Nike still has some fundamental indicators that may provide some upside for investors. North was also looking at FuelCell Energy (NASDAQ:FCEL) which is caught in the back-and-forth negotiations over climate policy in Congress. FuelCell remains a long-term bet on the emergence of hydrogen fuel cells as a significant part of our national strategy for renewable energy. And North gives investors some positive indicators for FCEL stock as well as some reasons for concern.
Articles by Parth Pala
The U.S. economy is now in a recession by technical definitions. And Parth Pala was giving investors three stocks to consider for the simple reason that each of these defensive stocks outperformed the market in the last recession in 2008. And as electric vehicle stocks begin to recharge, Pala analyzed Rivian (NASDAQ:RIVN) and advised investors that the company will have to deliver on its production outlook to justify analysts’ current estimates for RIVN stock. Pala also offered a cautious outlook for PayPal (NASDAQ:PYPL). As Pala notes, the company beat analysts’ expectations in its recent earnings report. However, the company, and PYPL stock, still appear to face significant headwinds that suggest investors need to be careful before taking a position.
Articles by Kate Stalter
The saga surrounding Twitter (NYSE:TWTR) and Elon Musk can cause investors to take their eyes off the ball. Which, as Kate Stalter points out, means asking the question of whether TWTR stock is a good buy. If you’re on the fence about the stock, be sure to read Stalter’s article for insight on where Twitter fits in the social media landscape. Stalter was also offering her insights on Palantir (NYSE:PLTR) and Shopify (NYSE:SHOP). The enterprise software makers continue to struggle as the market is showing signs of reversing. Stalter was also looking at the pharmaceutical sector and specifically, these three pharma stocks, which although not outperforming the market may be worth keeping on your watchlist.