MarketBeat Week in Review – 10/23 - 10/27

And now we wait for the Fed. A robust GDP number on Thursday and an in-line PCE reading on Friday weren't enough to keep the bears at bay. Even strong earnings reports from some of the big tech names couldn't sustain interest in equities.  

Right now, stocks are affected by more than bond yields near 5%. Institutional investors continue to reprice stocks for a higher-for-longer rate environment. They're also paying close attention to geopolitical events which could impact markets. 

The bottom line is that rather than climb the wall of worry, many investors are moving to the sidelines. But with the sell-off beginning to work its way into some established blue-chip stocks, there could be some opportunities as we head into the last two months of the year. 

Finding those opportunities is the goal of the MarketBeat analysts every week. Here are some of our most popular stories this week.  

Articles by Jea Yu 

Investing in Las Vegas Sands Corp. (NYSE: LVS) has been a gamble since on-premise casino operations were shut down in 2020. Since then, Las Vegas Sands has pivoted to embrace its properties in Macau and Singapore fully. As Jea Yu wrote this week, that bet is paying off as traffic in both locations is now above 2019 levels. However, that growth may not be reflected in LVS stock.  

If you're looking for more speculative stocks, Yu writes about two flying vehicle stocks that will scratch that itch. This is an emerging sector, and Yu explains what investors need to consider before investing in Joby Aviation, Inc. (NYSE: JOBY) and Archer Aviation Inc. (NYSE: ACHR). 

Retail earnings will be closely scrutinized heading into the holiday season. Yu points investors towards Kohl's Co. (NYSE: KSS) and offers four reasons you may want to include KSS stock on your holiday shopping list or 2024 watchlist.   

Articles by Thomas Hughes 

Tech stocks have led the decline in equities since mid-summer. But it's still a sector where investors need to have some exposure. Two of the most highly-rated companies in the sector reported this week. Microsoft Corporation (NASDAQ: MSFT) scored a double beat and raised its full-year guidance. The report confirmed the company's leadership in the cloud, which is only one reason MSFT stock should have a long runway

It was a similar story for Meta Platforms, Inc. (NASDAQ: META) with a double beat. However, as Hughes writes, investors expected more, and the stock has moved lower since the release. Nevertheless, Hughes provides five reasons why Meta is likely to hit new highs in 2024.  

Pivoting to value stocks, Hughes analyzed the recent earnings report from Verizon Communications, Inc. (NYSE: VZ). The stock is down 12% in 2023 as investors have been rejecting its deep value proposal. But Hughes explains why confirmation of the company's solid dividend will likely bring back income-oriented investors.  

Articles by Sam Quirke 

Sam Quirke was eyeing mega-cap stocks this week. In fact, he wrote two different articles, each focusing on mega cap stocks that offer opportunities for different reasons. In one article, Quirke looks at three mega caps trading at a low relative strength indicator (RSI). This is a technical indicator that often signals oversold conditions, which frequently means a reversal is coming.  

In a separate article, Quirke looks at two different mega cap stocks that have lagged the market this year. However, as is frequently the case, these stocks tend to be among the best performers in future years. Quirke makes the recovery case for these stocks.  

Quirke also wrote about the three tech giants that reported earnings this week (Microsoft, Alphabet, and Meta Platforms) and gave investors suggestions on how to play the stocks post earnings.  

Articles by Chris Markoch 

3M (NYSE: MMM) delivered a strong earnings report this week. The report briefly lifted MMM stock, which is trading near 11-year lows. However, as Chris Markoch writes, the earnings report didn't necessarily answer the questions that still hover around the stock, particularly how long the company can rely on cost-cutting and pricing power to grow earnings.

Markoch was also writing about Conagra Brands, Inc. (NYSE: CAG), which at first glance appears to be an undervalued consumer staples stock. Markoch outlines why that may be true but also gives investors the reasons why some investors may consider CAG stock to be a value trap.  

Articles by Kate Stalter  

One of the major stories of the week was the announcement that Chevron Corporation (NYSE: CVX) was acquiring Hess Corp. (NYSE: HES). The $53-billion all-stock deal is another example of how oil companies are attempting to increase production through acquisition. Stalter explains what Chevron says that means for current and future CVX shareholders.  

Sticking with defensive stocks, Stalter was writing about three dividend aristocrats, a group of solid blue-chip companies with a history of increasing dividends for at least 25 consecutive years. And Stalter offers up three of these stocks that are objectively undervalued.  

Even as artificial intelligence (AI) evolves, opportunities continue to pop up. One of those opportunities may be lining up with Super Micro Computer Inc. (NASDAQ: SMCI), which offers computer hardware products that will be essential to the growth of the AI infrastructure.  

Articles by Ryan Hasson 

The SPY index broke through a key support level this week. There are many stocks to avoid in the sector, but this week, Ryan Hasson made the case for ACM Research, Inc. (NASDAQ: ACMR). The company provides vital services for the chip industry. Hasson lays out the fundamental and technical considerations that could signal a breakout for ACMR stock.  

Hasson also offered his analysis prior to the major tech stocks that reported this week. The takeaway for investors is that these stocks are all in the top 10 of the QQQ fund, and their performance will heavily impact the performance of the ETF.  

Articles by Gabriel Osorio-Mazilli 

Gabriel Osorio-Mazilli reminded investors that it can pay to watch where Warren Buffett is putting his money. In this case, Osorio-Mazilli wrote about Buffett's recent investment in the housing sector, specifically some names in the construction sector. So far, earnings results and analysts' estimates suggest that Buffett is making a smart bet. 

If the housing sector is still a no-go for you, you may want to look at the utilities sector. Surprisingly, this sector has lagged the market this year. But as Osorio-Mazilli writes, there are reasons to believe the sector will move higher, and he gives you three picks that have valuations that are in line with the sector averages. 

And income-oriented investors will want to read Osorio-Mazilli's article about Simon Property Group, Inc. (NYSE: SPG). The real estate investment trust (REIT) pays a dividend with a juicy yield of 7.2%. And with a 16x valuation, investors can buy SPG stock at an all-time low valuation.  

Articles by MarketBeat Staff 

In volatile markets, many investors follow a momentum trading strategy. If that applies to you, the MarketBeat staff offers up CrowdStrike Holdings, Inc. (NASDAQ: CRWD). The stock checks off many of the boxes that momentum investors look for. The staff provides insight as to whether the stock can move higher.  

Mid-cap stocks are slumping in tandem with large-cap stocks. However, as with any sector, there are always exceptions. And this week, the staff highlighted three mid-cap stocks that go into earnings season with high expectations.  

And to close out the week, the staff reminded investors that even blue-chip stocks can find themselves on the wrong side of short interest. The staff lists the three S&P 500 stocks with the highest short interest. As with all stocks, there are reasons the shorts may be wrong, but it's important to understand the bullish and bearish thesis with any stock you own.