MarketBeat Week in Review – 3/18 – 3/22

March 23, 2024 at 07:00 AM EDT

Investors are taking a breather after remarks from Federal Reserve chair Jerome Powell sent stocks to all-time highs. On March 20, Powell took a dovish tone, including comments that made it clear that the Fed still plans to cut rates in 2024, possibly as early as June.

That was all investors needed to step on the gas. Also helping to fuel the rally was Reddit's initial public offering (IPO), which generated higher-than-expected interest (FOMO anyone?).

Next week will be a shortened trading week as the markets close early on Friday in observance of Good Friday. But investors will still get a lot of economic reports, including the February reading of the Personal Consumption Expenditures (PCE) index on Friday.

The MarketBeat team will keep an eye on those reports and other market-moving news that can affect your portfolio. Here are some of the most popular articles from this week.

Articles by Jea Yu

SoFi Technologies Inc. (NASDAQ: SOFI) can't seem to catch a break. After a solid earnings beat, SOFI stock continues to move lower, largely because of what may be a misunderstood $750 million convertible debt offering. However, Jea Yu explained why that could be an opportunity for investors to get a more attractive entry point.

Yu also wrote about the dip in Walmart Inc. (NYSE: WMT) stock, which finalized a 3-for-1 stock split in February. The stock is showing technical signals that suggest a pullback is likely. But Yu tells investors that strong fundamentals and likely increased demand will make any pullback a chance to buy WMT stock at an even more attractive price.

However, Yu explains why investors looking to buy the dip may want to steer clear of electric vehicle stocks, including Nio Inc. (NYSE: NIO). The company has 45% of the market shares in China but remains unprofitable. Until that trend changes, Yu explains why even though NIO stock is down 44% in the last 12 months, it may have further to fall.

Articles by Thomas Hughes

Thomas Hughes was focused on artificial intelligence stocks this week and pointed investors to the opportunities that still exist. One of those is with Nvidia Corporation (NASDAQ: NVDA). The stock is consolidating as more investors buy the stock. Still, as Hughes pointed out, the company is continuing to innovate and gain market share, both of which make NVDA stock a solid investment for long-term investors.

Hughes won't deny that NVDA stock still has a premium valuation. And if that valuation makes you long for less expensive options, Hughes gives you 5 undervalued AI stocks that offer investors double-digit upside.

This week's big market-moving news was the Fed's confirmation that interest rate hikes are not only on the table, but likely. If that's the case, Hughes points to four home decor stocks that analysts believe have become attractively undervalued and ready to move higher on lower interest rates.

Articles by Sam Quirke

A recurring theme on stocks that Sam Quirke wrote about this week was "upon further review." At the end of the week, investors received earnings reports from two of the most-watched retail stocks. Lululemon Athletica Inc. (NASDAQ: LULU) delivered an as-expected double beat but the athleisure giant also issued soft forward guidance that sent shares lower. A similar story emerged with Nike Inc. (NYSE: NKE) after what, at first glance, was a solid earnings report.

However, in both cases, Quirke reminds investors to look at analyst sentiment. For both LULU and NKE, analysts are reaffirming their Buy ratings, which means both stocks could be offering investors buyable dips.

A similar theme is in place with one of the most widely traded technology stocks. Investors rushed into Snowflake Inc. (NYSE: SNOW) stock in 2024 but exited just as quickly after a disappointing earnings report. However, Quirke explains why SNOW stock may be a buy, as analysts believe the sell-off is now overdone.

Articles by Chris Markoch

Chipotle Mexican Grill Inc. (NYSE: CMG) announced a 50-for-1 stock split pending shareholder approval. Chris Markoch wrote about why the stock jumped immediately following the announcement but why investors who are on the sidelines may want to wait before getting involved with CMG stock.

Markoch also wrote about the recent earnings reports from Dollar General Inc. (NYSE: DG) and Dollar Tree (NASDAQ: DLTR). The reports were similar at face value, but the companies are telling two different stories to investors.

Archer-Daniels Midland Company (NYSE: ADM) is also moving higher after the company shed some light on an accounting probe. Markoch writes why some short-term uncertainty makes ADM stock a difficult trade, but the stock still appears to be a solid long-term investment.

Articles by Kate Stalter

Investors are lining up to buy shares of Reddit Inc. (NYSE: RDDT) after its initial public offering (IPO) on March 21, 2024. Kate Stalter explains why investors may be eager to jump into RDDT stock and what it may mean for future tech stock IPOs.

For investors who may be looking for non-technology stocks, Stalter suggests looking at consumer discretionary stocks, which Bank of America (NYSE: BAC) believes will outperform consumer staples stocks in 2024.

Stalter also wrote about the recent decline in Bitcoin and what that could mean for investors who are piling into Bitcoin ETFs. Stalter observes that how you feel about Bitcoin ETFs will largely depend on your feelings about Bitcoin. Right now, industry analysts are bullish on both.

Articles by Ryan Hasson

Even in a stock picker's market, investors can learn a lot by observing sector patterns. This week, Ryan Hasson looked at two sectors that appear to be moving in different directions. Hasson wrote about the continued momentum in the popular Financial Select Sector Fund (NYSE: XLF). The fund isn't overbought yet, but investors may want to consider taking profit in financial stocks.

On the other hand, increased interest in the Energy Select Sector SPDR Fund (NYSE: XLE) points to the long-awaited resurgence in energy stocks.

Hasson also analyzed the recent climb off a bottom by PayPal Holdings Inc. (NASDAQ: PYPL), which may be supported by recent technical signals. However, Hasson cautions investors that analysts remain mostly bearish on the stock, making it a cautious buy for investors looking to get involved.

Articles by Gabriel Osorio-Mazilli

Investors are increasingly becoming aware of how stock buybacks can impact the growth of the stocks they own. With that in mind, this week, Gabriel Osorio-Mazilli highlighted three large-cap stocks that have been aggressively buying back shares.

Osorio-Mazilli also pointed out the increased spending in the industrial sector and why one or more interest rate cuts will be bullish for three industrial stocks.

Another story that may have a future impact on the market is the possible ban on TikTok. As lawmakers continue to debate legislation, Osorio-Mazilli looks to what might come after a ban and explains why investors might want to keep their eye on Meta Platforms Inc. (NASDAQ: META) and Alphabet Inc. (NASDAQ: GOOGL).

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MarketBeat Week in Review – 3/18 – 3/22

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