Financial News

MarketBeat Week in Review – 8/21 - 8/25

Markets were holding on to slight gains to close the week. This was despite remarks by Federal Reserve chair Jerome Powell that did not indicate that the Fed will retreat from its goal of keeping interest rates higher for longer. Powell also suggested that the committee is not closing the door on one or more interest rate hikes. 

Maybe this is a case of the bad news already being priced in. Whatever the reason, investors will take a slight reprieve. But it may not last long. Volume is likely to surge when institutional investors re-enter the market after Labor Day. And economic data next week, including the latest PCE reading and the August jobs report, may add more food for the bears to feed on. 

But this is still a market where there are opportunities for nimble investors. And the MarketBeat team continues to help you find them and explain how to profit from them. Here are some of the most popular stories from this week.  

Articles by Jea Yu 

This week, Jea Yu wrote two articles that gave investors ideas on profiting from a digital economy that is continually moving away from traditional banks. For example, payment platforms continue to gain a growing share of consumer's wallets. PayPal Holdings, Inc. (NASDAQ: PYPL) and Block, Inc. (NYSE: SQ) are two of the most recognizable names in this sector. However, Yu analyzes two digital payment platforms using growth in emerging markets to outperform those brand names. 

Yu also explains why higher interest rates, lower fees, and cryptocurrency trading are driving consumers to financial technology (fintech) banks. Yu five fintech banks that continue to have a lead over traditional banks, even as the latter are enhancing their fintech capabilities.  

And with interest rates likely to stay higher for longer, high-yield dividend stocks will continue to catch investors' attention. These stocks can be more volatile than other dividend stocks, but if you have an appetite for some risk, Yu gives you a list of five high-yield dividend stocks to add to your watchlist.  

Articles by Thomas Hughes 

This week, Thomas Hughes looked at MarketBeat's list of the Most Downgraded Stocks. As Hughes points out, investors should understand that just because a stock is heavily downgraded doesn't mean there isn't a buying opportunity. Hughes writes that this could be the case for three of MarketBeat's most downgraded stocks.  

One of the week's most anticipated earnings reports came from Nvidia Corporation (NASDAQ: NVDA). The company knocked it out of the park, and Hughes gives investors compelling reasons why NVDA stock could rise under 50%.  

Unlike Nvidia, the retail sector was largely a disappointment this earnings season, especially if you were looking at some of the biggest names in this space. However, Hughes gave investors a list of four off-price retailers whose stocks are clear winners as consumers continue to shift their spending habits from discretionary items to essentials.  

Articles by Sam Quirke 

Some argue this is a "sell the rip" market. That certainly seems to be the case with Super Micro Computer Inc (NASDAQ: SMCI) and Palo Alto Networks (NASDAQ: PANW). Both stocks have sold off sharply after a post-earnings rally.  

However, if you're still holding shares of these stocks or thinking about buying the dip, be sure to read why Sam Quirke believes both stocks have post-earnings tailwinds that may send them to higher highs.  

Articles by Chris Markoch 

As Congress returns from its summer recess, talk is turning to the possibility of a government shutdown. But as Chris Markoch notes, investors shouldn't allow this to change their feelings about defense stocks. Markoch gave investors three defense stocks to consider before market volume picks up in September. 

While artificial intelligence (AI) continues to be a key theme for investors, there is concern that some air is coming out of the bubble. It may be time to look at a different way to invest in AI. Specifically, Markoch recommends looking at two industrial stocks that are helping to monetize AI.  

And Markoch also analyzed this week's earnings report from Lowe's Companies, Inc (NYSE: LOW). The company delivered a different report from that of The Home Depot, Inc. (NYSE: HD) while still acknowledging that consumers are decreasing their discretionary spending. But while HD stock sold off after the report, LOW stock continues to show strength after solid but cautious guidance.  

Articles by Kate Stalter  

One strategy being bantered about is that you should invest in U.S. businesses doing business because of China rather than buying Chinese stocks directly. However, as Kate Stalter observed this week, that strategy is being tested with some of the semiconductor companies that were expecting to benefit from China's re-opening. Stalter writes about three semiconductor stocks that are at risk from the slowdown in China, particularly if it continues to get worse. 

Stalter was also writing about the Elon Musk-fueled drop in Bitcoin and, by extension, Bitcoin stocks. Each of these stocks are highly correlated to the price of bitcoin, so, as Stalter observes, investors need to prepare for a range of outcomes when it comes to these stocks.  

Options are also on the mind of The Walt Disney Company (NYSE: DIS) CEO Bob Iger, who is mulling over whether to sell off its ESPN asset as part of a more significant restructuring. Stalter writes about the state of play and gives you some things to consider, particularly if you own or are planning to buy shares of DIS stock.  

Articles by Ryan Hasson 

Warren Buffett has been buying homebuilder stocks, but should you? That's a question Ryan Hasson asked as he analyzes the three homebuilder stocks that Berkshire Hathaway (NYSE: BRK.B) recently purchased.   

Investors continue to look for equities that can deliver the combination of dividend growth and price appreciation that compares with the 5% risk-free yield they can receive from short-term Treasury bills. Hasson offered up two mid-cap telecom stocks that are threading that needle nicely for investors and have some room to run higher.  

Hasson also explained why MetLife, Inc. (NYSE: MET) is showing technical signals that point to the fact that the stock could be ready for a breakout after a strong earnings report.   

Articles by Gabriel Osorio-Mazilli 

Rising mortgage rates suggest ongoing weakness in the housing sector. However, recent data shows a jump in new home sales that indicates it may be a good idea to look at the stock of mortgage companies. Gabriel Osorio-Mazilli did just that in making the case for three mortgage stocks that could be opportunistic buys.  

Osorio-Mazilli also looked at the large swings in crude oil prices in the last year. He reminds investors a key to investing in the sector is to shut out short-term noise and look at the long-term picture. When you do, Osorio-Mazilli gives investors three oil exploration stocks that have strong upside. 

And while the consumer is under pressure, they haven't stopped spending altogether. As Osorio-Mazilli points out, you should look for three consumer cyclical stocks that may be ready for a comeback.  

Articles by MarketBeat Staff 

The Nasdaq 100 is one of the best-performing sectors in 2023. The index includes many of the top tech names. But this week, the MarketBeat staff wrote about three hot Nasdaq stocks that aren't as flashy as their tech brethren but are showing strong momentum heading into the last quarter of the year.  

The staff also examined the case for high-equity exchange-traded funds (ETFs). This presents investors with a low-risk, diversified investment option that often delivers a yield that beats the short-term Treasury market. And when you buy one of these low-cost, high-yield ETFs, you won't be eating into the yield you get.  

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