Key points
- Stocks are trending lower to end the week as inflation concerns dampen enthusiasm for a June rate cut.
- The combination of higher inflation and higher interest rates for longer is unlikely to be fully priced into corporate earnings, and analysts may revise their forecasts lower.
- The MarketBeat team can always help you find stocks that stand out in this market; here are some of our most popular stories from this week.
- 5 stocks we like better than Target
Stocks trended lower to end the week. The latest inflation figures are a stark reminder that inflation will remain above the Federal Reserve’s preferred 2% target for longer than expected. That means interest rates are also likely to stay high for longer, as expectations of a June rate cut quickly fade.
This combination of higher inflation and higher interest rates is currently not priced into corporate profits. But analysts could start to sharpen their pencils. This means investors should carefully monitor price target downgrades and reductions before the next earnings season begins in April.
The wall of worry is growing, but all major indexes are still higher for the year because it’s still a stock-picking market. And MarketBeat is here to help. Our team of analysts allows you to focus on the stocks and news that move 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 pleasantly undervalued. But maybe not for long. Read his article to learn more about the role of these chips and two stocks that appear to be preparing to make a bullish move.
Target Co. NYSE:TGT shares have been under pressure for almost a year as the company has disappointed in terms of revenue. But Yu writes that TGT stock rose sharply after another outsized profit surge that reminded investors there could still be value to unlock in the retail sector.
Yu also wrote about the double beat and bullish forward guidance issued by Medtronic PLC NYSE:MDT. The medical device maker’s journey has been rocky since 2020. However, as Yu points out, that hasn’t stopped this Dividend Aristocrat from increasing its dividend, which adds to the value of owning MDT shares.
Articles by Thomas Hughes
This week, investors heard Broadcom Inc. NASDAQ: AVGO as the company reported its first quarter 2024 results. Thomas Hughes explains why the stock could fall after the bullish report and why this could be a buyable drop.
Adobe Inc. NASDAQ:ADBE is another stock correction after gains. But in this case, it’s because the company’s forecasts were only in line with analysts’ expectations. As Hughes explains, the company lived up to expectations. However, in-line guidance in an era of high valuations is seen as conservative, leading analysts to lower their price targets.
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 at small and mid-cap stocks and offerings five mid-cap stocks well positioned for a turnaround.
Articles by Sam Quirke
The resurgence of Bitcoin has been a wave that has raised many Bitcoin stocks. As Sam Quirke writes this week, this includes the actions of Coinbase Global Inc. NASDAQ:COIN. Shares of the world’s largest cryptocurrency exchange soared by triple digits in the wake of Bitcoin. But Quirke advises caution because stocks that rise in the crypto market also frequently lead to sharp declines.
In the event of sale of the news, the shares of Southwest Airline. NYSE:LUV are down more than 17% after the company lowered its forecasts for several key indicators, including the expectation of a decrease in shipments of THE Boeing Company NYSE:BA. However, Quirke writes about technical signals suggesting that selling in LUV stock may be overkill.
Quirke was also looking at a potential tasty setup for Jack in the Box Inc. NASDAQ:JACK. The stock has been in liquidation since January and weak results have done nothing to help. Still, Quirke explains why recent analyst updates indicate a growth opportunity up to 30%.
Articles by Kate Stalter
So far, large-cap stocks have led the market higher in both 2024 and 2023. However, Kate Stalter points out that many analysts believe it is time for small-cap stocks to emerge from their prolonged slump. . This week, Stalter treated investors to three of the best Small-Cap Stocks Poised for Significant Growth.
Another opportunity for growth-oriented investors could come from examiningthree stocks that are not part of the S&P 500. In the article, Stalter explains how the components of the S&P 500 are selected and why investors may want to look for growth outside of the sector.
It won’t be long before several major tech stocks report earnings. And Stalter writes why The Goldman Sachs Group Inc. NYSE:GS provides for a 13% increase in share buybacks as many big names report windfall profits.
Articles by Ryan Hasson
As investors know, many Seven magnificent actions have been far from great 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 growth investors are making, moving away from big, overvalued tech stocks and into wildly 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 watch list.
Hasson also had some picking oversold stocks for dividend-minded investors. In an uncertain market, these stocks offer above-average dividend yields and positive analyst sentiment, making them good choices in an uncertain economic environment.
Articles by Gabriel Osorio-Mazilli
The super cycle in the chip industry is fueled, in part, by the chip law and the science that rewards companies that move their manufacturing plants offshore. However, Gabriel Osorio-Mazilli reminds investors that these companies still need components to power their extensionsand that is why they should consider Taiwan Semiconductor Manufacturing Co. NYSE:TSMwhich is also expected to receive $5 billion from the next funding round.
Osorio-Mazilli also looked at two stocks among Goldman Sachs’ top picks. In the industrial sector, Goldman appreciates the double-digit increase in Mueller Water Products Inc. NYSE:MWA. The “boring” company should benefit from the need to continue spending on infrastructure.
Regarding the technology sector, Goldman is bullish on cybersecurityAnd Sentinel One Inc. NYSE:S stands out because it presents upside potential which has not yet been taken into account in the company’s valuation.
Before you consider Target, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and top-performing research analysts daily and the stocks they recommend to their clients. MarketBeat identified the five actions that top analysts are quietly whispering to their clients to buy now before the entire market crashes…and Target wasn’t on the list.
Although Target currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are Better Buys.
Click the link below and we’ll send you MarketBeat’s list of the 10 best stocks to own in 2024 and why they should be in your portfolio.
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