Saturday, January 20, 2024

🌎 The Weekly Wrap-Up for 1/20/2024

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MarketBeat Weekly Wrapup
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January 20th, 2024
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The Weekly Wrapup

Will they or won't they? The "they" is the Federal Reserve, and the question is what the Fed will say about the direction of interest rates when they meet later this month. Investors are starting to cool on the idea that the Fed will cut rates in March. But the Fed itself continues to suggest that the economy may be cooling.  

In the meantime, Apple Inc. (NASDAQ: AAPL) lifted the market on news that it avoided litigation surrounding its Apple Watch. But the rally may be short-lived. Next week, investors will get the latest read on the Personal Consumption Expenditures (PCE) index, which is likely to show inflation ticking higher, which could dampen investor sentiment. However, investors will get a different read on consumer spending when Visa Inc. (NYSE: V) reports earnings late next week.  

Here are some of the top stories the MarketBeat team covered this week.  

Articles by Jea Yu 

Earnings season is underway, which has investors looking at the guidance from the companies' reporting. A common tactic is to underpromise and overdeliver. So, it's noteworthy when companies raise their guidance. That's the case with three healthcare companies that Jea Yu writes about this week. Each company offers buying opportunities after raising its revenue guidance for the coming year. 

Solid-state batteries are a potential alternative to lithium-ion batteries. QuantumScape Co. (NYSE: QS) is the leader in this space. Yu wrote about the good news that gave QS stock a lift this week, why it could be forming a bullish technical signal, and why investors may still need to proceed cautiously.  

If you think the weight loss craze is flaming out, think again. Yu writes about two biotech stocks with weight loss drugs in late-stage clinical trials. Read about the chances these drugs may have to compete with Ozempic or Mounjaro.  

Articles by Thomas Hughes 

Per tradition, the banks have been the first to report earnings. As Thomas Hughes writes, the strength of the big bank stocks was largely priced into the market. However, that creates an opportunity to buy the dip in small regional banks like the three high-yielding bank stocks he analyzes this week.  

Cybersecurity will continue to be an essential component of every home and business. But some cybersecurity stocks have soared into correction territory. This week, Hughes writes about two cybersecurity stocks that are due for a correction but will be solid buying opportunities for patient investors.  

The chip sector continues to rebound from an oversupplied situation in 2023. Although Nvidia Corporation (NASDAQ: NVDA) remains a solid choice, Hughes analyzes why Advanced Micro Devices Inc. (NASDAQ: AMD) has an upside that may rival 2023 NVDA stock.  

Articles by Sam Quirke 

Investors know that a reliable buying signal is when analysts upgrade or raise their price targets on a stock. That's the case with Salesforce Inc. (NYSE: CRM), which continues to get upgrades despite delivering a triple-digit return in 2023. 

The corollary is that stocks typically go down when analysts lower their guidance. But Quirke points out that this hasn't been the case for Shopify Inc. (NYSE: SHOP), which keeps going up despite receiving multiple downgrades in the past month.  

Quirke was also writing about Qualcomm Inc. (NASDAQ: QCOM), which remains a popular name among chip stocks. Nevertheless, QCOM stock has been lagging behind other stocks in the sector, but it looks like a buying opportunity based on, you guessed it, a bullish outlook from analysts.  

Articles by Kate Stalter  

It's been a rough start to the year for the electric vehicle (EV) sector and EV stocks, with Tesla Inc. (NASDAQ: TSLA) leading the way with a 13% decline. This week, Kate Stalter outlines the current state of play with the EV market and how that may affect the future outlook for TSLA stock.  

The troubles in the EV sector are a gut punch for growth investors. But as Stalter explains, several companies are already announcing double-digit dividend increases. This means that dividend-paying stocks, which had a rough year in 2023, could be rewarding for income-oriented investors in 2024.

Stalter was also analyzing the news from CVS Health Co. (NYSE: CVS). The company is shutting down dozens of pharmacies that it placed in Target Co. (NYSE: TGT). However, as Stalter explains, the move fits with the company's long-term strategy to become a healthcare-focused company.  

Articles by Ryan Hasson 

PayPal Holdings Inc. (NASDAQ: PYPL) has taken investors on a roller coaster ride since 2020. Off a year in which PYPL stock fell almost 20%, Ryan Hasson writes about the neutral outlook for the stock heading into earnings and why it may still surprise to the upside.  

Hasson also wrote about the steep drop in Spirit Airlines Inc. (NASDAQ: SAVE) after the Justice Department blocked its merger with JetBlue Airways Corporation (NASDAQ: JBLU). The decision reminds investors not to put much stock in merger announcements until the deal is done.  

Articles by Gabriel Osorio-Mazilli 

Inflation is being felt in many ways. One of the ones drawing significant attention in 2024 is rising insurance premiums. However, Gabriel Osorio-Mazilli explains why that may be bullish for UnitedHealth Group Inc. (NYSE: UNH). The company faces rising medical costs, but its ability to raise premiums allows it to pass much of those along to consumers.  

Many investors sold the news from The Boeing Company (NYSE: BA) after the in-flight incident with its MAX 9 jet. However, Osorio-Mazilli explains why investors who are paying attention to analyst sentiment may want to take advantage of oversold conditions in BA stock.  

And while consumers and businesses have been enjoying the relief that comes from lower oil prices, Osorio-Mazilli explains why the oil market is setting up for a major rally in 2024 and gives you a short list of oil stocks to buy.  

Articles by MarketBeat Staff 

As dividend investors know, a high yield doesn't always make a stock or an ETF a good value. However, this week, the MarketBeat staff identified three high yield ETFs that look like good buys in 2024.  

If picking individual dividend stocks is more your flavor, the staff shows you how it used the MarketBeat dividend screener to find three stocks that were garnering positive news sentiment in the last month.  

And as earnings season rolls on, we'll be hearing from restaurant stocks and, specifically, fast food stocks. This week, the MarketBeat staff analyzed three of the top names in the fast food sector and forecasted what you should expect from their upcoming earnings.  

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