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MarketBeat: Week in Review 10/24-10/28

It’s a full-on rally in equities as the week comes to an end. Investors are shrugging off an in-line PCE number, the positive read on third quarter GDP, and concerning earnings reports from several tech sector stalwarts.  All of this should drag the market down because they suggest inflation remains entrenched in the economy. However, a better-than-expected result from Apple along with a surge in profits from two stalwart oil stocks seems to be all the market needs to move higher. With the Federal Reserve expected to raise interest rates by another 75 basis points next week, investors may be expecting the worst is over. It’s too early to tell. However, the market will have more earnings reports to digest next week. And the MarketBeat team will be watching them closely and pointing you towards stocks that may present themselves as good opportunities. Here are some of the most popular articles from this week.

Articles by Jea Yu

Electric vehicle stocks remain under pressure for a number of macroeconomic reasons. And one of the most beaten-down EV stocks is XPeng (NYSE: XPEV). The stock is down 80% in just four months. Does that make it a good buy? That’s the question that Jea Yu attempted to address. Yu was also looking at another beaten-down stock, that of Unity Software (NYSE: U). Like XPEV, U stock is down 80%, but in the case of Unity Software, Yu does see some immediate catalysts that investors should pay attention to.  Turning his attention to the consumer staples market, Yu helped investors understand the recent earnings report by Procter & Gamble (NYSE: PG). The company is not immune from the headwinds battering the broader economy. But as its earnings report showed that the company is still delivering on the bottom line which will make the stock a buy for income-oriented investors.

Articles by Thomas Hughes

Thomas Hughes was also looking at the EV sector. In this case, Hughes was writing about Mullen Automotive (NASDAQ: MULN). It’s a penny stock now, but it’s up approximately 50% in the past month, and Hughes pointed out three catalysts that could accelerate its production timeline and the growth in its stock. For investors who are looking for income plays, Hughes suggested they understand the risk and reward with Zim Integrated Shipping (NYSE: ZIM). The good is that the company has a managed distribution plan that allows it to pay 30% of earnings in dividends. But that comes at a time when analysts may be cooling on the stock. One company that is not showing a problem with growth or value is Kraft Heinz (NASDAQ: KHC). Investors who appreciate the stability and safety of consumer staples stocks should appreciate what KHC stock offers in terms of high value and high yield.

Articles by Chris Markoch

Altria (NYSE: MO) has long been considered a great defensive stock with a high-yield dividend. However, Chris Markoch writes that it’s fair for investors to wonder if declining demand for the company’s core cigarettes is a harbinger for future revenue and earnings declines. A lack of demand is not a problem for Bristol-Myers Squibb (NYSE: BMY) which continues to show fundamental strength which makes BMY stock a solid choice in volatile markets. Markoch was also writing about Chevron (NYSE: CVX) that posted another quarter of near record earnings. And Markoch explains why Chevron is still a great long-term investment.

Articles by Parth Pala

Parth Pala gave a recap of the earnings report from Kimberly-Clark (NYSE: KMB). The consumer staples giant gave a mixed report that is bringing the stock down even as it continues to manage through inflationary pressures, including passing along a 9% price increase to its customers. Pala was also writing about two of the most-anticipated tech stocks to report earnings. As Pala writes Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) had two very different earnings reports. And that’s showing up in the respective stock’s performance the day after earnings. However, Pala believes the market may be overselling Amazon and he also wrote that investors may find Apple to be more fairly priced than bullish investors believe it to be.

Articles by Kate Stalter            

Renewable energy will be one of the most investable sectors for 2023 and beyond. This week, Kate Stalter was looking at Array Technologies (NASDAQ: ARRY), a small-cap stock that has been generating big returns for investors  this year. Read her article to see if it’s a fit with your portfolio. Turning her attention from small caps to mid-caps, Stalter wrote about Lantheus Holdings (NASDAQ: LNTH). The company has been outperforming its benchmark index and is one for investors to watch when it reports earnings on November 3. Another compelling sector for the next several years will be lithium miners. And one of the heavyweights in this sector is Albemarle (NYSE: ALB). The stock is having a good year, but Stalter advised caution before earnings while giving investors several buyable signals to watch.

 

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