Financial News
MarketBeat: Week in Review 6/27 – 7/1
The markets closed out the first six-months of 2022 at 50-year lows. The issues remain the same. Inflation remains stubbornly high. Many analysts now believe the economy is headed for, if not already in, a recession. And that means that equity prices may have further to fall. However, we know that this is a time to have a plan and stick to it. Whether you already have a plan, or are looking to develop a bear market strategy, we’re here to help. 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
In bear markets, investors shift their focus from growth stocks to value stocks. And when it comes to finding companies that offer value, cash is king. But as Jea Yu points out, in this case cash means cash-per-share. And in this article, Yu gives investors explains how investors can screen for cash value stocks in this bear market. Turning his attention to international stocks, Yu was looking at what appears to be a double bottom in the Brazilian financial technology company, StoneCo (NASDAQ:STNE). As Yu notes, STNE stock is down 54% for the year despite triple-digit top line growth. Another stock that Yu believes may be forming a bottom is SentinelOne (NYSE:S). The cybersecurity company is showing strong top-line growth, but the stock is down over 40% as part of the broader tech sell-off.
Articles by Thomas Hughes
One tried-and-true bear market strategy is to look at stocks that analysts are upgrading. This is particularly important at a time when many experts predict that analysts will be lowering their forecasts and price targets for the back half of the year. Thomas Hughes gave investors two stocks that have been received the most upgrades from analysts. Another bullish signal in a bearish market is finding stocks that insiders and institutional investors are buying. As Hughes points out, Smith & Wesson (NASDAQ:SWBI) fits that criteria and is showing the fundamental strength to back it up. And not to neglect dividend stocks, Hughes was advising investors to take a close look at General Mills (NYSE:GIS) for both its growing dividend and its growing bottom line.
Articles by Sam Quirke
It continues to be brutal in the tech sector, but Sam Quirke was looking at Snowflake (NYSE:SNOW). And this week he gave investors three reasons why risk-tolerant investors should consider buying SNOW stock even as the stock is still down significantly from its 2021 highs. Another growth stock that looks like it may be a good investment in the back half of 2022 is Nike (NYSE:NKE). As Quirke explains, investors may continue to face some short-term headwinds, but it’s fair to say that a long position in NKE stock is likely to be rewarded.
Articles by Chris Markoch
As Chris Markoch writes, “the playbook for investing in this bear market can be as simple as finding companies that have pricing power.” And that’s at the core of Markoch’s thesis for why investors may want to buy Hershey’s (NYSE:HSY) stock. The confectioner raised prices late last year and so far it’s showing no signs of affecting sales. In its most recent quarter, Hershey’s posted a 16% year-over-year (YOY) increase in revenue and a 31% YOY increase in earnings. And as Markoch points out, HSY stock is outperforming the broader market and should continue to do so as consumers continue to find comfort in the company’s products.
Articles by Matthew North
Matthew North was helping investors understand the bullish and bearish case for QuantumScape (NYSE:QS) stock. The company is developing solid-state batteries that have a potential to disrupt the EV industry. At the same time, the company’s product won’t be ready until perhaps 2026. And that makes investing in the stock an exercise in patience for only the most risk-tolerant investors. Revenue and earnings is not a problem for Pfizer (NYSE:PFE) and rock-solid financials backed by a growing pipeline of therapeutics are reasons North is buying the stock and recommends investors do the same.
Articles by Parth Pala
The first half of 2022 saw the emergence of revenge travel. This was bullish for stocks like Booking Holdings (NASDAQ:BKNG). As Parth Pala notes, the pure-play travel technology company is delivering steady cash flow and is well seeded in the travel industry. This is drawing the attention of institutional investors who are buying into the stock helping to support its premium valuation. Pala was also making a case for Paychex (NASDAQ:PAYX). The company provides human resources, payroll, and outsourcing services for small and medium-sized businesses. And as Pala notes the company continues to deliver solid performance in a competitive industry.
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.