MarketBeat: Week in Review 7/25 – 7/29

The markets are rallying to close the week and there are a couple of reasons why. First, big tech companies such as Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) delivered results that call into question the weakness of the consumer. That weakness was suggested by Walmart (NYSE:WMT) when it spooked the markets with a profit warning earlier in the week. The rally may also come from receiving data that the U.S. economy is in a technical recession. As odd as that sounds, it may give investors hope that the tightening the Fed has done is working. And if that’s true then maybe the bottom is in. But hope is not a strategy if you’re investing in this market. And that’s why the MarketBeat team continues to sift through the headlines to find the facts behind the stocks that are moving the market. Here are some of the stocks our analysts were looking at this week.

Articles by Jea Yu

In our continuous effort to guide consumers through this bear market, Jea Yu was reminding investors that staying in the market doesn’t mean holding on to every stock you own. In some cases, it’s important to realize that some beaten-down stocks are not coming back. And in this article, Yu gives investors practical tips on deciding which stocks to hold on to during a bear market. Yu also gave his analysis of C3.ai (NYSE:AI). The artificial intelligence sector is getting crushed in 2022. But the bullish thesis remains strong with the enterprise AI market predicted to grow to nearly $600 billion by 2025. And C3.AI continues to capture market share which suggests the stock may provide a buying opportunity. Yu was also looking at medical device maker Medtronic (NYSE:MDT). As procedure volumes are returning to pre-Covid levels, the company is forecasting a strong second half of the year which may make the stock appealing for growth-oriented investors.

Articles by Thomas Hughes

Oil company profits were one of the big stories to close the week. And Thomas Hughes was looking specifically at ExxonMobil (NYSE:XOM). The company posted record profits and with oil prices likely to remain elevated into 2023, Hughes outlines what that could mean for investors in XOM stock. Turning his attention to the consumer discretionary sector, Hughes was also analyzing the results from Coca-Cola (NYSE:KO). The company is managing through inflation to show why it’s one of the all-time great defensive stocks. And speaking of companies that are positioned well in an inflationary environment, Hughes suggests investors look at Wingstop (NASDAQ:WING) and Hershey (NYSE:HSY) which are both showing the importance of branding and operational efficiency.

Articles by Sam Quirke

Much has been made about companies reporting “less bad” earnings. And as Sam Quirke points out that was the case with Alphabet (NASDAQ:GOOGL) which missed on the top and bottom lines, but not as badly as feared. Quirke notes that GOOGL stock has been beaten down this year. However, this report may be the catalyst for opportunistic investors to jump back in. One company that had no problems in their earnings report was McDonald’s (NYSE:MCD). In a follow-up to an article he wrote a few weeks ago, Quirke analyzed the company’s recent earnings report that proves the fast food giant remains among the most attractive of recession-proof stocks.

Articles by Chris Markoch

One strategy that investors can follow is to get ahead of the sectors that are likely to grow in coming quarters. This week, Chris Markoch was looking at three stocks that investors should consider adding to their watchlist and also make the list of MarketBeat’s most upgraded stocks. Markoch was also reviewing Apple after the company reported strong earnings. As iPhone demand shows, sometimes it’s important to watch what the consumer does more than what it says. And although the housing market is softening, Markoch explains why that may not be the headwind for Home Depot (NYSE:HD) that many investors think it is.

Articles by Matthew North

MarketBeat analysts frequently give you both the bullish and bearish cases for a stock. And that was the approach that Matthew North took with several stocks this week.  For example, Disney (NYSE:DIS) is garnering some sentiment as an undervalued stock. North analyzes that claim while acknowledging that the sum-of-its-parts nature of Disney makes assigning valuation more complicated. AbbVie (NYSE:ABBV) is another stock that is getting attention. North analyzes the positive attributes of the company while also pointing out where there might be a better option in the sector. And it wouldn’t be a week here at MarketBeat where we didn’t analyze at least one semiconductor stock. In this case, North was looking at the bullish and bearish case for Micron Technology (NASDAQ:MU).

Articles by Parth Pala

The energy sector was one of the few growth sectors in the first half of the year. And this week, investors got to see just how much they grew. But with oil prices stabilizing, which oil and gas stocks remain good investments? Parth Pala offers up three stocks that look to outperform even if crude prices continue to fall. Sticking with the commodities sector, Pala was looking at the current situation with Freeport-McMoran (NYSE:FCX). The company reported weaker-than-expected earnings due to falling copper prices. However, with demand for copper likely to remain high, analysts are giving FCX stock a pass. Pala was also analyzing Ford (NYSE:F). The automaker delivered earnings this week and investors are encouraged that the company’s “all-in” commitment to electric vehicles appears to be paying off.

Articles by Kate Stalter

Continuing our look at the oil and gas sector, Kate Stalter provided an analysis of Occidental Petroleum (NYSE:OXY). Specifically, Stalter compares Occidental to ExxonMobil and Chevron (NYSE:CVX). If you’ve been considering a position in OXY stock you should read her article before the company reports earnings next week. Stalter was also looking at two airline stocks after each reported earnings. As Stalter points out, there are still a lot of unknowns in the airline sector. But these are two stocks to keep an eye on when there’s evidence of a sustained economic recovery.

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