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MarketBeat Week in Review – 11/6 - 11/10

Stocks closed the week with a strong rally that erased all the losses that hit the market after Fed chair Jerome Powell reiterated the Fed's stance that more interest rate hikes may be needed to combat inflation.  

However, the rally wasn't broad-based, with tech stocks grabbing most of the gains. And many key indicators still suggest these gains may be short lived. The tipping point is likely to come from the upcoming readings on inflation.  

The Consumer Price Index (CPI) and Producer Price Index (PPI) report next week, as will major retailers Walmart and Target. While this will be lagging data, it will help investors decide the outlook for the upcoming holiday season.  

Articles by Jea Yu 

Artificial intelligence (AI) stocks have been down sharply in the past quarter over concerns about the ability of companies to monetize AI. If that's the case, investors may want to look closely at Fastly Inc. (NYSE: FSLY). Jea Yu updated investors after the company delivered a double beat and maintained guidance that was in line with estimates. Although not yet profitable, the company's revenue continues to grow as customers embrace the company's business of using AI to optimize content delivery at the network's edge.  

Yu was also looking at two biotech stocks of companies that delivered disappointing earnings reports. For Pfizer, Inc. (NYSE: PFE), the sell-off continues a trend that's been in place for nearly a year. The correction in Sanofi (NASDAQ: SNY) has been more recent. Read Yu's article to see if either stock presents a buying opportunity.  

Continuing his hunt for potential turnaround opportunities, Yu analyzed three lithium stocks that are trading lower due to lower guidance but may be great buys if the electric vehicle (EV) market continues to deliver on its long-term promise.  

Articles by Thomas Hughes 

Thomas Hughes presented investors with a different way to consider AI stocks. Specifically, what companies are using AI to help investors make better decisions? Hughes gives investors three companies to consider if they're looking to invest in artificial intelligence in a unique way. 

It's been a rough earnings season for electric vehicle (EV) manufacturers. That's one reason Rivian Automotive, Inc. (NASDAQ: RIVN) stood out. The company had a double beat and raised its guidance for the year. Analysts are raising their outlook for the stock as it trades at a critical support level.  

Hughes also reminded buy-and-hold investors who are looking for quality dividends to consider three health insurance stocks that are becoming leaner and meaner due to secular trends, federal law, and the rise of AI.  

Articles by Sam Quirke 

You know it's a rough year for semiconductor stocks when even shares of Nvidia Corporation (NASDAQ: NVDA) are falling. But as Sam Quirke writes, after trading sideways for the better part of a year, Qualcomm Inc. (NASDAQ: QCOM) is giving investors several reasons to believe it may be a buying opportunity in what continues to be a volatile sector.  

Quirke was also looking at the stellar performance of Birkenstock Holding plc (NYSE: BIRK). As Quirke notes, the initial response to the IPO was a little scary, but the stock has more than recovered and is enjoying strong support from analysts, with some calling for a 30% upside from the stock's recent high of over $42 per share.  

Articles by Chris Markoch 

Vertex Pharmaceuticals (NYSE: VRTX) is pulling back from its all-time high despite a solid beat on the bottom line. As Chris Markoch writes this week, the stock may have been priced for a perfect earnings report, and a slight miss on revenue was all it took for investors to take a profit. However, the company has two catalysts in the next quarter or two that, if the news is positive, will likely take the stock to new highs.   

Articles by Kate Stalter  

The U.S. economy may or may not have a recession, but Kate Stalter reminded investors this week that facts don't care about feelings and laid out some facts in the banking and trucking sectors that may point to where the broader economy is headed. We encourage you to read Kate's article and invest accordingly. 

On a brighter note, Statler was reminding investors that this is a stock picker's market and backed that up by pointing investors to three companies - Airbnb Inc. (NASDAQ: ABNB), Intel Corp. (NASDAQ: INTC) and Live Nation Entertainment Inc. (NYSE: LYV) - with little in common except that all three crushed earnings expectations, making all three buying opportunities in the fourth quarter.  

Stalter was also writing about the price action around Eli Lilly and Co. (NYSE: LLY) after it received approval from U.S. regulators for its weight-loss drug Zepbound. Lilly is the latest to get its hat in the ring of this growing sector, and analysts believe the company will likely be one of the winners in the space

Articles by Ryan Hasson 

Ryan Hasson analyzed the earnings report from Palantir Technologies, Inc. (NYSE: PLTR). This is a company that some investors love and some love to hate. Hasson helps you take the emotion out of it and gives you the positive and negative to consider about PLTR stock post earnings.  

Hasson also wrote about Roku Inc. (NASDAQ: ROKU), which moved sharply higher after earnings. However, Cathie Wood has trimmed her position, and that has some investors wondering if the stock is overbought.  

And while many investors are looking for risk-off stocks, some risk-tolerant investors may look for an opportunity in penny stocks. If that fits your investment style, Hasson writes about five penny stocks in the aerospace and defense sector. This could create an opportunity to find low-priced stocks in a sector that is projected to show strong growth in coming years.  

Articles by Gabriel Osorio-Mazilli 

Earlier this year, many investors were surprised to learn that Warren Buffett was buying homebuilder stocks. But Gabriel Osorio-Mazilli reminds you that investors who were paying attention could see that it was a logical move, and it's paying off now and may continue to pay off into 2024

Apparel stocks have been falling as retailers try to right-size their inventory. But, as Osorio-Mazilli points out, that may be changing in the world of footwear. This week, he explains why investors looking for certainty may want to consider just buying adidas AG (OTCMKTS: ADDYY) instead of Nike, Inc. (NYSE: NKE).  

One stock that most investors won't have any problem getting behind is Celsius Holdings Inc. (NASDAQ: CELH). The stock is up nearly 50% in 2023, and Osorio-Mazilli analyzes why the company's stock may have much further to run.  

Articles by MarketBeat Staff 

Bearish investors won't want to read what the MarketBeat Staff was writing this week. The team was looking at three bullish narratives. First, institutional investors frequently look at one year's laggards as potential winners in the following year. The MarketBeat staff writes about three beaten-down stocks that Wall Street believes may be next year's big winners.  

For risk-tolerant traders looking for ideas on stocks to trade during this earnings season, the staff delivered several large cap names that have yet to report but are expected to beat on earnings, which means now is the time for you to put these stocks on your radar. 

And finally, the staff asked what's in your portfolio? It's tongue-in-cheek, we know, but if you're looking for opportunities in finance stocks, you'll want to read why Capital One Financial Corporation (NYSE: COF) may be worth a closer look.  

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