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MarketBeat Week in Review – 8/14 - 8/18

Markets are flat to close the week as inflation and interest rates continue to weigh on investors’ minds. Many top retailers reported this week and the message was the same. Consumers are feeling the pinch of inflation and changing their shopping habits because of it. 

At the same time, with oil prices likely to average around $86 a barrel for the rest of the year, it will be hard to keep inflation in check. That’s why investors will be paying close attention to what Federal Reserve Chair Jerome Powell has to say next week from Jackson Hole, Wyoming. Higher for longer interest rates are a given, but how high is high? As long as investors remain uncertain about the short-term direction of rates, the markets will be volatile. 

But as some of our writers wrote this week, it’s almost time for football. And among our most popular stories this week are some stocks that can help you capitalize on this time of year.  

Articles by Jea Yu 

Meme stocks may have lost some of their 2021 mojo, but there are still many stocks that could be the next GameStop Corp. (NYSE: GME) if the conditions are right. Jea Yu wrote about six stocks that meet many of the requirements to be the next meme stock.  

If that’s not thrilling enough, Yu was also writing about the popularity of experiential entertainment. Not coincidentally, that’s helping the performance of the two stocks that Yu analyzes as strong options to capitalize on this growth.  

If more passive form of entertainment, like sports betting, is more your style, Yu wrote about why you might want to take a look at DraftKings, Inc. (NASDAQ: DKNG). The company continues to show strong growth as more states continue to legalize sports betting. And that trend shows no sign of letting up.  

Articles by Thomas Hughes 

Retail stocks were in focus this week. The sector is a bellwether into the health of the consumer and Thomas Hughes analyzed the hotly awaited earnings reports from Walmart, Inc. (NYSE: WMT) and Target Corporation (NYSE: TGT). While the companies posted different results, the outlook for both shows slower spending in discretionary items. 

Hughes was also writing about recent developments on Capitol Hill that could point to a resurgence in the cannabis industry. It may not be time to hit the buy button yet, but Hughes gave investors three cannabis stocks that investors should have on their watchlist if this is the start of a new rally in cannabis stocks. 

And when markets are volatile, dividend stocks remain a safe place for all investors. But if you’ve been in fast food stocks this year, you’re seeing investors back away as all the growth is seen as being priced in. However, Hughes was sharpening his pencil and explaining why three fast food chains have growth prospects that may not be properly priced into the stocks.  

Articles by Sam Quirke 

To kick off retail week this earnings season, Sam Quirke highlighted the three retailers that are most likely to move the market and helped investors understand what to expect from each retailer. 

Earlier this week, the CEO of Redfin Corporation (NASDAQ: RDFN) said the housing market had hit “rock bottom.” That factors into Sam Quirke’s analysis of Zillow Group, Inc. (NASDAQ: ZG). The stock is in a strong uptrend and Quirke analyzes why the recent 10% drop in the ZG share price may create an entry point for investors.  

Quirke also analyzed Qualcomm Inc. (NASDAQ: QCOM). The chipmaker has been widely discussed by MarketBeat analysts. Quirke gives investors two reasons to consider QCOM stock and one reason why they may want to stay away.  

Articles by Chris Markoch 

The healthcare sector tends to be a strong performer no matter what is happening in the macro economy. This week, Chris Markoch gave investors three healthcare stocks that may provide the right prescription for an ailing portfolio. 

Pharmaceutical stocks are much less of a safe bet. However, if you’re a long-term investor, Markoch wrote about three blue-chip pharmaceutical stocks that have deep pipelines that, should they pay off, are not being properly valued by analysts. 

And Markoch observes that beer and football go together like peanut butter and jelly. That’s why it’s a good time to look at three beer stocks that are good opportunities to consider as football season gets underway.  

Articles by Kate Stalter  

Bank stocks are historically among the more boring stocks to own. But 2023 has shown this sector to be anything but boring. This week, Fitch suggested that it may have to downgrade the credit of several U.S. banks, including some of the largest banks. That news is having a negative effect on bank stocks and Kate Stalter helped investors understand the threat and how to move forward. 

Stalter was also writing about the oil and gas sector which is moving in a much more bullish direction. But instead of looking at the big oil stocks, Stalter analyzes three smaller gear makers that analysts suggest may have tripled-digit earnings growth to power forward. 

And some investors are wondering if high-yielding dividend players AT&T Inc. (NYSE: T) and Verizon Communications, Inc. (NYSE: VZ) are starting to look so bad, they’re good? As Stalter explains, with share prices of both continuing to drop, the answer is likely to be that investors should proceed with caution.  

Articles by Ryan Hasson 

One way to identify potential breakout stocks is to watch for the movement of an ETF that tracks a particular sector. That’s a setup that Ryan Hasson noticed with a leading biotech ETF that is showing signs of consolidating. And Hasson gave investors three biotech stocks that investors may watch for a breakout.  

While penny stocks aren’t for everyone, investors can’t seem to avoid hearing about the fortunes, or misfortunes of WeWork (NYSE: WE) as they look for the next meme stock. As Hasson explains, WE stock is surging which is becoming a trend for companies on the brink of bankruptcy. The question is whether the stock has enough short interest for a short squeeze.  

And while many investors have been pulling out of tech stocks, Hasson was writing about Alphabet, Inc. (NASDAQ: GOOGL) which is up 6% in the last month and is giving off bullish technical signals that may send it higher.  

Articles by Gabriel Osorio-Mazilli 

Ross Stores (NASDAQ: ROST) delivered a double beat to close out a busy week of retail earnings. As Gabriel Osorio-Mazilli explains, the strong performance continues a trend that shows discount stores continuing to be the beneficiaries as consumers continue to trade down in an effort to manage through inflation. 

While retailers are struggling, construction companies are doing much better. Osorio-Mazilli explains why there are three construction stocks that have had a great summer and strong growth rates will continue to generate investor interest.  

On the other hand, Osorio-Mazilli noted that computer stocks are at the beginning of what will likely be a sharp pullback as PC demand falls from its highs that were fueled by remote work. Risk-tolerant, opportunistic investors should look to buy the dip on the three computer stocks that are covered in this article.  

Articles by MarketBeat Staff 

The impending end of summer ushers in back-to-school shopping and football season. This week the MarketBeat staff writers were looking at three stocks that are standing out as consumers stretch their budgets as their children head back to school.  

And even casual sports fans know that the National Football League (NFL) is big business that covers multiple sectors of the economy. As the season gets ready to kick off, investors may want to look at three stocks that will directly benefit from the return of the NFL.  

Finally, it may seem like an odd time to be investing in real estate investment trusts (REITs). But you can find value in any sector. That’s the angle our staff took as they wrote about three high-yield dividend REITs that are getting bullish upgrades from analysts.  

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