Financial News
MarketBeat Week in Review – 2/27 - 3/3
Stocks are staging a rally to end the week. Of course, just because stocks start higher doesn’t mean that’s where they’ll finish. That’s the nature of a market that is hanging on every word spoken and unspoken from Federal Reserve officials. There’s an easier way. And this week you’ll see that many of the MarketBeat analysts are pointing you in that direction...dividend stocks. Those dividends can make a difference when many stocks look like they may be trading in a tight range. Next week brings more economic data and ends with the closely watched jobs report. Our team of analysts will be watching that data come in and looking for the stocks and stories that can help you capture gains no matter what’s happening in the broader market. Here are some of the most popular articles from this week.
Articles by Jea Yu
This week Jea Yu pointed investors in the direction of three monthly dividend stocks. Many of the companies that pay monthly have a business model that requires them to deliver a high percentage of their profits back to shareholders in the form of dividends. This makes the dividend highly reliable in bull and bear markets. Reliability may be a question that investors have about the 49% yield (that’s not a typo) that ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is currently offering.
As Yu says, this is one time when investors have to consider a lot more than the headline yield number. Yu was also looking at Royal Caribbean Group Ltd. (NYSE:RCL) as revenge travel continues to dominate the headlines. The cruise line has been seeing higher current and future bookings and expects to be profitable for full year 2023. The key will be if the company can raise prices enough to pay off the significant debt it took on during the pandemic.
Articles by Thomas Hughes
I told you we were focusing on dividend stocks this week, and I meant it. Thomas Hughes describes the outlook for two dividend stocks that reported earnings this past week. The one that may carry the most risk in 2023 is Lowe’s Corporation (NYSE: LOW). Hughes sees nothing that puts the Dividend King’s streak at risk, but the charts signal that LOW stock may have to go down sharply before it goes back up.
For Cracker Barrel (NASDAQ: CBRL), Hughes sees a tug-of-war between the bulls and bears that could keep the stock range-bound in 2023. That’s where a 4% dividend yield can help pacify investors. Hughes was also looking at one of the week's biggest movers, Salesforce.com (NASDAQ: CRM). The stock is up 14% for the week after the company crushed it on both the top and bottom line and issued positive guidance. Hughes notes that there may be some technical headwinds, but this may be a time to build a position in this best-of-breed company.
Articles by Sam Quirke
Sam Quirke continued on the theme of dividend stocks. Quirke wrote about the bullish outlook for Target Corporation (NYSE: TGT) after its earnings report. The retailer issued weak guidance for 2023 and the bulls have failed to push this stock past a firm level of resistance. Still, with a healthy 2.6% dividend yield, opportunistic investors may be rewarded as they look for opportunities to build their position. Quirke was also looking at another retailer that beat on earnings.
The case for Ross Stores Inc. (NASDAQ: ROST) Is similar to Target in that the stock price is failing to get traction because of weak guidance. But this is when it may pay to be one of the better companies in a weak retail sector which could point to an opportunity later this year. And if you’re still interested in growth stocks, Palo Alto Networks, Inc. (NASDAQ: PANW) has been charging ahead as if it was 2019. As Quirke writes, you would be wise to pay attention to its lofty valuation, but for right now, PANW stock looks ready to hit new highs.
Articles by Chris Markoch
Electric vehicle stocks have been in a slump lately. Rivian Automotive, Inc. (NASDAQ: RIVN) is among the latest to disappoint investors with its results and guidance. Chris Markoch writes that supply chain issues serve as a reminder that these are car companies first and foremost. The payoff may be years away if at all.
Lower guidance is also the issue facing dollar store stocks. These stores are benefiting from more foot traffic as consumers trade down. But they may not be seeing the growth in consumer discretionary spending as they have in prior economic downturns. All of this bad news may have you looking for comfort food. And for many people, that may mean a slice of Domino’s Pizza Inc. (NYSE: DPZ). If that’s you, it would be welcome news for the company which is finding that even pizza sales aren’t immune from inflation pressures.
Articles by Kate Stalter
Kate Stalter was also looking at dividend stocks and offered investors three high-yield dividend stocks that are not household names but can help ease the bite of inflation right now. Future demand for lithium is making lithium stocks among the most compelling buys in the market right now. This week Kate Stalter gave investors a small-cap name that may not be on their radar, Orion Engineered Carbons SA (NYSE: OEC). The specialty chemicals company supplies carbon black which is a key component in boosting the performance of lithium-ion batteries.
Small-cap stocks always carry some risk, but OEC is expected to post strong earnings growth in the next two years to fuel this opportunity. Stalter was also looking at security stocks. But this isn’t cybersecurity, this is about public safety and the companies that provide the products needed by law enforcement and private security firms. It’s becoming big business (as if it wasn’t already) and Stalter gives you three security stocks that are benefiting from this trend.
Articles by Matthew North
Did I mention that this week we were focusing heavily on dividend stocks? Matthew North has three articles for you to consider as you prepare your trading week. First, the Dividend Kings are an exclusive group of stocks that have increased their dividends for at least 50 consecutive years. This week North gave investors a list of 11 stocks that are on track to join that list in the next five years. And if stock picking is not your cup of tea, North gives you some factors to help you find the best dividend ETF for your portfolio. For investors who are active investors and comfortable with the potential risks of trading options, North offers up a strategy to help you get even more income from your dividend investments.
Articles by MarketBeat Staff
One strategy that investors can use to find alpha in this choppy market is to identify the sectors that are showing the strongest growth. The MarketBeat staff gives you an overview of three sectors that have been leading the market forward in 2023. Another good strategy for investors is to look at mid-cap stocks. These are stocks give investors a balance of growth and liquidity.
Our team offers you three mid-cap stocks that you can buy for less than $20 a share. And we’ll leave you with one more solid dividend stock to consider. That stock is General Mills, Inc. (NYSE: GIS). The consumer staples company has a strong stable of comfort foods and raised its 2023 guidance for the second time.
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