Equities trended lower to end the week. The latest readings on inflation were a stark reminder that inflation is going to be above the Federal Reserve's preferred 2% target for longer than hoped. That means interest rates are also likely to remain higher for longer as expectations for a June rate cut are fading rapidly.
This combination of higher inflation and higher interest rates is not currently priced into corporate earnings. But analysts may start to sharpen their pencils. That means investors should watch carefully for downgrades and price target reductions before the start of the next earnings season in April.
The wall of worry is getting taller, but all the major indexes are still higher for the year as it's still a stock picker's market. And MarketBeat is here to help. Our team of analysts enables you to focus on the stocks and stories that are moving the market. Here are some of our most popular stories from this week.
Articles by Jea Yu
This week, Jea Yu wrote about discrete semiconductors, a specific sector within the broader chip market that is refreshingly undervalued. But perhaps not for long. Read his article to learn more about what these chips do and for two stocks that appear to be getting ready to make a bullish move.
Target Co. (NYSE: TGT) shares have been under pressure for nearly a year as the company has disappointed on the top line. But Yu writes that TGT stock gapped up sharply after another outsized earnings beat that reminded investors there may still be some value to unlock in the retail sector.
Yu also wrote about the double beat and bullish forward guidance issued by Medtronic PLC (NYSE: MDT). It's been a choppy ride for the medical device maker since 2020. However, as Yu points out, that hasn't prevented this dividend aristocrat from increasing its dividend, which adds to the value of owning MDT stock.
Articles by Thomas Hughes
This week, investors heard from Broadcom Inc. (NASDAQ: AVGO) as the company reported its first quarter earnings for 2024. Thomas Hughes explains why the stock may be moving lower after the bullish report and why that may be a buyable dip.
Adobe Inc. (NASDAQ: ADBE) is another stock correcting after earnings. But in this case, it's because the company's forward guidance was only in-line with analysts' expectations. As Hughes explains, the company met expectations. However, in-line guidance at a time of elevated valuations is perceived as cautious, causing analysts to move their price targets lower.
As concerns grow over a significant correction in the S&P 500, many investors may be looking to find stocks that offer value and yield. Hughes suggests investors look to small- and mid-cap stocks and offers five mid-cap stocks that are well positioned for a turnaround.
Articles by Sam Quirke
The resurgence in Bitcoin has been a tide lifting many related bitcoin stocks. As Sam Quirke writes this week, that includes shares of Coinbase Global Inc. (NASDAQ: COIN). Shares of the world's largest cryptocurrency exchange soared by triple digits on the coattails of Bitcoin. But Quirke advises caution as equities that go up in the crypto market frequently make sharp moves lower as well.
In a case of selling the news, shares of Southwest Airlines Co. (NYSE: LUV) are down more than 17% after the company made a downward revision to its forward guidance for several key metrics, including an expectation of fewer deliveries from The Boeing Company (NYSE: BA). However, Quirke writes about technical signals suggesting that selling in LUV stock may be overdone.
Quirke was also looking at a potential tasty setup for Jack in the Box Inc. (NASDAQ: JACK). The stock has been selling off since January, and a weak earnings report did nothing to help. Still, Quirke explains why recent analyst upgrades point to an opportunity for up to 30% growth.
Articles by Kate Stalter
So far, large-cap stocks have led the market higher in 2024 as they did in 2023. However, Kate Stalter points out that many analysts believe it's time for small-cap stocks to break out of their prolonged slump. This week, Stalter gave investors three of the top small-cap stocks that are poised for significant growth.
Another opportunity for growth-oriented investors may come from looking at three stocks that are not part of the S&P 500. In the article, Stalter explains how the S&P 500 components are selected and why investors may want to look for growth outside the sector.
It won't be long before several big tech stocks report earnings. And Stalter writes why The Goldman Sachs Group Inc. (NYSE: GS) forecasts a 13% increase in share buybacks as many of the top names report breakout earnings.
Articles by Ryan Hasson
As investors know, many of the Magnificent Seven stocks have been less than magnificent in 2024. However, Ryan Hasson analyzes why it might be time for you to consider these three underperforming Magnificent 7 stocks.
Hasson also wrote about the shift that growth-oriented investors are making away from overvalued big tech stocks and into extremely oversold stocks. Hasson provides a list of five oversold stocks and explains why you may or may not want to buy them, but they should be on your watchlist.
Hasson also had some oversold stock picks for dividend-conscious investors. In an uncertain market, these stocks offer above-average dividend yields and positive analyst sentiment, which make them good choices in an uncertain economic backdrop.
Articles by Gabriel Osorio-Mazilli
The super cycle in the chips sector is being fueled, in part, by the Chips and Science Act that rewards companies who are onshoring their fabrication plants. However, Gabriel Osorio-Mazilli reminds investors that those companies still need components to power their expansions, and that's why they should consider Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), which is also projected to receive $5 billion from the next round of funding.
Osorio-Mazilli also looked at two stocks among Goldman Sachs's top picks. In the industrial sector, Goldman likes the double-digit upside of Mueller Water Products Inc. (NYSE: MWA). The "boring" company is forecast to get a boost from the need for continued infrastructure spending.
Turning to the tech sector, Goldman is bullish on cybersecurity, and Sentinel One Inc. (NYSE: S) stands out because it has upside potential that hasn't already been priced into the company's valuation.
