Financial News
MarketBeat Week in Review – 8/19 - 8/23
Stocks are closing higher to close the week. Federal Reserve chair Jerome Powell all but ensured that the Fed will cut interest rates in September. At the same time, the CBOE Volatility Index (i.e. the VIX) is up more than 6% this week, which suggests that investors are still concerned about the market's direction.
Those investors may bet more clarity after NVIDIA Corp. (NASDAQ: NVDA) reports earnings on August 28. Earnings season is winding down, but the chipmaker's report is a good example of how the market may be saving the best for last. That said, expectations are high, and even if the company delivers strong revenue and profits, investors will be paying close attention to the guidance.
Next week will likely have lower volume as traders and investors step away from their screens for the unofficial end of summer. But that also means it’s a good time to get positioned for post-holiday volatility when institutional investors jump back into the market. You can count on the MarketBeat team to keep you on top of the stocks and stories moving the market. Here are some of our most popular articles from this week.
Articles by Jea Yu
If you’re interested in investing in the space economy, Jea Yu explains why AST SpaceMobile Inc. (NASDAQ: ASTS) may be a compelling option to consider. The company is preparing to launch its first set of satellites allowing direct-to-cell 5G connection. This will take the company out of the pre-revenue stage and is a reason the stock is rocketing (pun intended) higher.
Another futuristic technology Yu was writing about is electric vertical take-off and landing (eVTOL) aircraft. Archer Aviation Inc. (NYSE: ACHR) is one of the emerging names in this space. Yu explains why the beginning of commercial flights in 2025 will be the catalyst that takes Archer into the commercialization stage.
Yu also wrote about the earnings report delivered by Merck & Co. (NYSE: MRK), which is down about 6% in the three weeks following its quarterly earnings. The pharmaceutical giant guided for lower earnings, but Yu explains why investors should still see this as a buying opportunity.
Articles by Thomas Hughes
Investors heard from several key retailers this week, and Thomas Hughes covered several of the top retail stocks. Lowe’s Companies Inc. (NYSE: LOW) delivered what many would say was a weak report. But Hughes notes that the company’s guidance was better than feared and, combined with a solid dividend, could make LOW stock a Hold for now and a Buy on any dip.
Hughes also wrote about the mixed results delivered by Williams-Sonoma Inc. (NYSE: WSM). The company is guiding to lighter revenue but stronger earnings and with analysts raising their targets, Hughes explains why WSM stock could be moving towards higher highs.
However, if you're looking for stocks to buy right now, Hughes explained why Ross Stores Inc. (NASDAQ: ROST) is a solid choice. The off-price retailer delivered a solid earnings report. And even with cautious guidance, analysts are giving ROST stock their seal of approval.
Articles by Sam Quirke
This week, Sam Quirke looked at three recently high-flying stocks that are down sharply in 2024 but may be poised for a comeback. For example, Tesla Inc. (NASDAQ: TSLA) is down 14.5% in the last month. However, Quirke notes that analyst sentiment is backed by solid technical signals that suggest risk-tolerant investors may have a buying opportunity.
Salesforce Inc. (NYSE: CRM) is another big name with significant volatility. The stock is basically flat in 2024 despite reaching an all-time high earlier in the year. The company will report earnings on August 28, and Quirke explains why CRM stock is starting to show signs of delivering a post-earnings rally.
Quirke also wrote about Lululemon Athletica Inc. (NASDAQ: LULU). Shares of the athleisure company are down almost 50% in 2024 and are now trading at pre-2020 levels. However, Hasson explains why the worst may be priced into LULU stock, which could be the base for an attractive rally when interest rates come down.
Articles by Chris Markoch
Investors are typically told to stay away from stocks with a high price-to-earnings (P/E) ratio. However, this week, Chris Markoch gave investors a list of three stocks with high P/E ratios that have catalysts that should allow investors to chase them higher.
On the other hand, companies that are buying back their shares are typically solid buys. This week, Markoch highlighted three stocks offering solid buying opportunities through ongoing stock buyback programs.
Although the EV market is facing headwinds, the future continues to look bright. That’s why investors may want to consider battery stocks like Microvast Holdings Inc. (NASDAQ: MVST) and FREYR Battery SA (NYSE: FREY). The companies are leading the way in creating the next generation of lithium-ion batteries, and Markoch analyzes what that means for investors looking to get involved with one or both stocks.
Articles by Ryan Hasson
For better or worse, investors pay attention to the moves made by Warren Buffett’s hedge fund, Berkshire-Hathaway Inc. (NYSE: BRK.B). This week, Ryan Hasson summarized Berkshire’s latest 13-F filing and explained the strategic shifts, sector diversification, and surprises that are important to investors.
One of the more notable Buffett buys was Occidental Petroleum Corp. (NYSE: OXY). This isn’t a new buy for Buffett; the company now owns 255 billion shares of OXY stock valued at approximately $16 billion. However, Buffett has been buying OXY stock aggressively in the past four years. Hasson explains why Buffett finds the stock so attractive and whether you may want to get involved.
Hasson also wrote about the latest 13-F filing from Stanley Druckenmiller. This included a new position in MercadoLibre Inc. (NASDAQ: MELI). Hasson explains why Druckenmiller may be interested in the Latin American e-commerce giant and why it may be a choice for retail investors as well.
Articles by Gabriel Osorio-Mazilli
In volatile markets, stocks that deliver consistent revenue and earnings stand out. This week, Gabriel Osorio-Mazilli highlighted four stocks that institutional investors will be holding onto this fall. If the market rally continues, these stocks will also likely outpace the market.
Three of those stocks are owned by Warren Buffett. However, Osorio-Mazilli also wrote about some of the stock picks made by Michael Burry. The hedge fund manager released his firm’s latest 13-F filing, and Osorio-Mazilli analyzed the top three picks on that list.
Several major cyberattacks in 2024 are crystallizing the significance of cybersecurity stocks. That’s evident in the performance of Palo Alto Networks Inc. (NASDAQ: PANW). The stock has increased more than 23% in the last six months. Osorio-Mazilli explains why the company’s latest earnings report, combined with the increased need for cybersecurity, will only increase interest in the company’s stock.
Articles by Leo Miller
Investors are eagerly awaiting NVIDIA's quarterly earnings report, which could push that stock and the market higher. However, many investors are trying to identify which company, if any, may be the closest to overtaking NVIDIA. This week, Leo Miller explains why Advanced Micro Devices Inc. (NASDAQ: AMD) is getting closer and why it may still have a long gap to close.
As we head into the election, the housing market will continue to be in sharp focus. But Miller pointed out that Toll Brothers Inc. (NYSE: TOL) stock is up 86% in the last 12 months and continues to climb higher after its recent earnings report, which the company beat on the top and bottom lines, reflecting strength in luxury homes. However, with earnings coming in lower year-over-year, the company is issuing a mixed outlook that gives investors reason to be cautious about the stock.
Finally, Cathie Wood is a polarizing investor, but Miller explains why if you had followed one recent move in her ARK Invest family of funds, you’d be sitting on significant gains. Specifically, Wood’s fund increased its holdings in Tempus AI Inc. (NASDAQ: TEM), which is up nearly 60% in the last month, even after mixed earnings.
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