Home Alternative guide MarketBeat: Week in Review 07/18 – 07/22

MarketBeat: Week in Review 07/18 – 07/22

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The market was in rally mode this week, but investors should be careful not to read too much into it. For one thing, with a few notable exceptions (we see you Snap), the gains are “less bad.” But forecasts are still weak and investors still don’t know what the Fed’s next move will be. There is still some sentiment that the Federal Reserve will raise the federal funds rate by 100 basis points when it meets next week. And if the Fed forecasts a 75 basis point hike for September, there could be more stock revaluations to come. That’s not the only big story on tap next week. Many high-profile tech stocks, including Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) report next week. The MarketBeat team continues to sift through headlines to find stocks and stories that can move the market. Here are some of the stocks our analysts have looked at this week.

Articles by Jea Yu

Semiconductor stocks are back in the news and Jea Yu was analyzing the outlook for Nvidia (NASDAQ: NVDA) which presents an interesting dilemma for investors. Specifically, the stock has fallen more than 40%, while revenue and earnings continue to grow on a sequential and year-over-year basis. The company released a lower guidance for the coming quarter, but as Yu points out, the lower guidance is a low bar to cross for a company that appears to be firing on all cylinders. Yu was watching too Costco (NASDAQ:COST) as another company that continues to show strength in a slowing economy. As with the pandemic, consumers continue to benefit from the company’s warehouse model which allows them to buy in bulk to mitigate the effects of inflation. And with growing membership, Costco continues to expand its footprint while delaying increased membership rates. At the other end of the spectrum, PayPal (NASDAQ: PYPL) stocks continue to lag the broader market and even company management is struggling to predict what the immediate future of digital payments will look like. Nonetheless, Yu shares an analysis of why PYPL stocks can form a fund for risk-tolerant investors.

Articles by Thomas Hughes

The relationship between price and value is critical to the success of an investment, especially when your portfolio is rather small. With that in mind, Thomas Hughes was looking for certain stocks with double-digit upside potential that could be bought for less than $50 a share. Hughes was also looking at the chip sector which offers a trio of undervalued stocks and has surprisingly high dividend yields. One of the big names reporting income this week was Tesla (NASDAQ:TSLA) who beat on both the top and bottom lines. That may have lifted the spirits of investors concerned about Elon Musk’s remarks about the company’s factories in Austin, Texas and Berlin being “money furnaces”. Hughes analyzes the company’s results and writes “Analyst activity at Tesla remains mixed but sentiment is firming and price target is stabilizing.” And this despite the persistent supply chain challenges in China. If the automaker sees an improvement in the supply chain, TSLA stock could be poised for a big upside.

Articles by Sam Quirke

We told you that semiconductor stocks made headlines this week. And if you want to learn more about the catalysts for the future of the industry, you’ll want to check out Sam Quirke’s two-part series. In part one, Quirke reviews the current state of the industry, including why there may still be headwinds. However, long-term investors who tolerate some volatility might consider snacking on quality stocks in the market. In the first part, Quirke pleads for Advanced Micro Devices (NASDAQ:AMD). Then in the second part, he continues his analysis with a review of the current catalysts of Nvidia (NASDAQ: NVDA).

Articles by Chris Markoch

Chris Markoch was looking at a pair of dividend-paying stocks that investors can rely on if the economy continues to slow. The first was Johnson & Johnson (NYSE:JNJ) which is a defensive title for defensive titles. As Markoch points out, this means investors gain “exposure to multiple sectors that all provide essential products and services to consumers.” And it also has the power to fix prices to increase revenue and profits in times of recession. The second was AbbVie (NYSE: ABBV) which will have to convince analysts that its Humira revenue replacement strategy is still on track. But long-term investors can count on the company’s growing dividend and expansive pipeline. And Markoch has also taken a look at the semiconductor sector and offers investors his view on the current situation with Advanced Micro Devices (NASDAQ: AMD). While Markoch admits the bears are in control, he points out that there’s a lot to love about the company’s fundamentals.

Articles by Matthew North

Matthew North was looking at two tech stocks that fell for different reasons. If you think history could repeat itself, North suggests investors look into Alibaba (NYSE:BABA). As China begins to reopen across the country with recently announced stimulus packages, some analysts are predicting an economic recovery similar to that which occurred in the United States in 2021. North was also analyzing much maligned stimulus packages Metaplatforms (NASDAQ: META). Although some reasons for concern remain, some analysts now consider META stock to be undervalued. North digs deeper into the company’s financials so you can decide if the stock is a hedge against the recession. And North was also analyzing the (less bad?) results of Netflix (NASDAQ:NFLX). The streaming giant’s stock is on the rise after the company beat high and low numbers and announced it had lost fewer subscribers than expected.

Articles by Parth Pala

The investing axiom of “selling the news” was in the spotlight this week when Apple (NASDAQ:AAPL) announced it would slow hiring and cut spending in some divisions through 2023. With investors looking for a reason to sell, AAPL stock fell more than 2% on the news and dragged the rest of the market down with her. Parth Pala notes that the company has several issues that analysts are concerned about, which makes their upcoming earnings report all the more important. Pala also forecast the Federal Reserve’s decision on interest rates and investor positioning with three stocks that benefit from rising interest rates. Along the same lines, rising interest rates are strengthening the US dollar, and Pala highlights four stocks that could benefit from a stronger dollar.

Articles by Kate Stalter

One of the emerging global trends that will impact investors over the next few years will be the balance between traditional fossil fuels and the expansion of alternative and renewable clean energy sources. And that was the center of attention when Kate Stalter analyzed the recent price movement in ExxonMobil (NYSE:XOM). ExxonMobil stock remains strong even though the energy sector has cooled. As Stalter notes, the question going forward will be how the company handles the early suppression of demand due to higher interest rates. Looking at Ford (NYSE:F), Stalter notes that F stock is recovering, but advises caution. As Stalter notes, this may be a case of investor sentiment (and perhaps nostalgia) running ahead of company fundamentals. Stalter was also reviewing the disappointing earnings report presented by Verizon (NYSE:VZ). In this case, the strength of the company’s dividend is an important factor to consider against softer forecasts. Specifically, Stalter notes, “The stock price is down 8.3% year-to-date, but if you include dividends, the total return is -1.87%.”

NVIDIA is part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and led by entrepreneurs.

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