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MarketBeat Week in Review – 8/7 - 8/11

The markets gave investors some unwanted thrills this week. The price action was fueled in part by inflation readings that failed to provide clarity for bulls or bears. The long-term outlook for inflation depends on oil prices which were moving higher on Friday. If the employment outlook continues to remain strong, demand will support oil in the $80 range and likely higher.  

Next week, investors will get updated about the health of the retail and manufacturing sectors. Both numbers will also provide clues about the health of consumer spending. Don’t just pay attention to what a company reports; it’s the guidance that will drive the market. Before that data comes in, we encourage you to take time to look at some of our most popular stories from this week.   

Articles by Jea Yu 

This week Jea Yu explained to investors why the three top performers in the Russell 2000 small-cap index (NYSEARCA: IWM) still have room to move higher. The index lags behind the broader market in 2023, but Yu notes that could spark the interest of institutional investors.  

One stock that’s not lagging the market is Upwork, Inc. (NASDAQ: UPWK) which is leveraging demand for AI talent to its advantage. The gig economy is alive and well.  

For value investors, Yu wrote about two stocks that doubled their earnings estimates and still saw the stock price fall. As Yu reminds investors, this often creates an opportunity for investors to buy companies with strong fundamentals at a nice discount.  

Articles by Thomas Hughes 

Rivian Automotive, Inc. (NASDAQ: RIVN) continues to be one of the more intriguing names in the EV sector. As Thomas Hughes wrote this week, the company is meeting and exceeding production estimates. That means the reversal in RIVN stock that started in June may be moving into high gear

Plug Power, Inc. (NASDAQ: PLUG) is another company that is starting to deliver on its promise. Analysts are bullish about the long-term outlook, and PLUG stock may be a buy. But Hughes cautions that retail investors will need to have patience before the company's major projects are fully operational. 

For value-oriented investors, Hughes also wrote about the mixed earnings delivered by The Wendy’s Company (NASDAQ: WEN). The company offers a high-yield dividend that Hughes points out should be supported by the company’s expected margin expansion.  

Articles by Sam Quirke 

When it comes to investing in EV stocks, there’s Tesla, Inc. (NASDAQ: TSLA) and there’s everybody else. If you’re looking to invest in one of the stocks in the rest of the field, Sam Quirke gives you two alternatives to Tesla. One name looks safe, and its returns reflect that safety and one name carries more risk but may also provide you with a better reward. 

Quirke was also looking at the outlook for the cloud-based data storage, computer and analytics company, Snowflake, Inc. (NYSE: SNOW). The company will report earnings later in August, and Quirke offers his analysis with three reasons to love SNOW stock and one reason you may want to be cautious.  

Articles by Chris Markoch 

Earnings in the tech sector didn’t deliver many surprises. But there were some exceptions. Now that most of the sector has reported, Chris Markoch offered up two tech stocks to buy and one to avoid as you position your portfolio for the rest of the year. 

This week’s CPI and PPI numbers put inflation concerns back on the front burner for many investors. But if you’re in one of the three stocks that Markoch writes about in this article, you can profit no matter which way inflation moves.  

And while many investors look at insider selling as a Sell signal, Markoch reminds investors that insider buying is a more reliable indicator of stocks to buy. He offers up three stocks that look like solid buys after heavy insider buying.  

Articles by Kate Stalter  

As if you needed more evidence that AI stocks are red hot, Kate Stalter analyzes how the growth in AI stocks is easily outpacing the growth in dividend stocks in 2023. And this includes many of the Dividend Aristocrats. However, if you're a dividend-oriented investor, Stalter reminds you that this kind of sector rotation is normal, and dividend stocks have a way of always being in fashion. 

One of the stocks mentioned in that article that is not an AI play is Royal Caribbean Cruises Ltd. (NYSE: RCL). RCL stock is up over 100% for the year, and while recommending caution for the moment, Stalter believes the future is bright for the stock if the company delivers on its goal of returning to profitability.  

“Weight-loss drugs are the pharmaceutical industry’s equivalent of AI.” That’s a line I wish I had written, and Stalter was using it to write about the interest in Novo Nordisk A/S (NYSE: NVO) stock after the company reported positive clinical trial results regarding an expanded label for its Wegovy drug.  

Articles by Ryan Hasson 

Energy stocks have been on the minds of investors as oil surges to over $80 a barrel. Ryan Hasson gives you three energy stocks that present investors with opportunities to profit as money flows into the energy sector.  

And with recession fears returning (as if they ever really left), investors are rotating back into defensive stocks. Hasson gave investors three stocks to make your portfolio recession ready.  

But this doesn’t mean that growth-oriented investors have no options. And you don’t have to look beyond the top names. Hasson writes about two tech giants in the beaten-down tech sector that still offer investors room for growth.  

Articles by Gabriel Osorio-Mazilli 

This week, Gabriel Osorio-Mazilli was reminding investors how inflation can help reveal sector winners. One of those is in machinery stocks. As Osorio-Mazilli writes, the cost of money is now more expensive, but that is making these “boring” machinery stocks look pretty attractive as avoiding losses becomes more important than ever.  

Another sector that Osorio-Mazilli was eyeing was the apparel industry. You’ll want to read his article to learn about the three popular apparel stocks that have the option to see margin expansion from falling commodity prices. 

Osorio-Mazilli was also recommending that value-oriented investors take a fresh look at 3M, Inc. (NYSE: MMM). The company has finally put its long-standing legal issues behind it. That means that analysts are starting to re-evaluate the stock, and maybe investors should as well.  

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