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MarketBeat Week in Review – 9/25 - 9/29

Historically, The end of the market's worst month and the end of a quarter has been volatile, mainly to the downside. Bond yields are up, and so are oil prices. Equities are down, as is the price of gold. The personal consumption expenditure (PCE) index showed that inflation may be growing slower than expected, but it's still growing.  

The wall of worry that investors have been climbing in 2023 just got a little steeper, with a likely government shutdown starting this weekend. An unforeseen consequence of a shutdown is the absence of key economic data that can shape investor sentiment. For example, the jobs report, which would typically come out at the end of next week, would not be issued. And should the shutdown linger, investors would not receive the September CPI reading.  

Even if the government is closed, the MarketBeat staff will still watch the markets. Here are some of our most popular articles from this week.  

 Articles by Jea Yu 

The aging of America will be a catalyst for investors for years to come. This week, Jea Yu analyzed two stocks that lean into that trend. Both stocks are underperforming the S&P 500 in 2023, but Yu explains why both stocks have delivered positive fundamental data that is not fully priced in.  

Sticking with undervalued stocks, Yu was writing about Kyndryl Holdings, Inc. (NYSE: KD), which is the world's largest IT infrastructure provider. The company spun off from International Business Machines Co. (NYSE: IBM) in 2021, and after a positive earnings report, the stock looks to be undervalued with a share price of under $20.  

This month, the stock of Planet Fitness, Inc. (NASDAQ: PLNT) and Block, Inc. (NYSE: SQ) both dropped sharply on news that both companies were replacing their CEOs with no specific reason given in either case. However, as Yu explains, each stock looks heavily oversold, which could point to a sharp correction to the upside.  

Articles by Thomas Hughes 

A new earnings season will be upon us in just a few weeks. The semiconductor sector will be one of the first to report. This week, Thomas Hughes gave investors five oversold semiconductor stocks for investors to look at before they report later this month.  

Regarding earnings reports, Costco Wholesale Co. (NASDAQ: COST) delivered a solid earnings report that failed to move the stock. There was a slight pullback in COST stock, which Hughes believes could be a buying opportunity. However, the company's substantial cash reserves led Hughes to suggest that the company may be preparing to issue a special dividend.  

Cintas Corporation (NASDAQ: CTAS) is another company seeing its stock fall after a solid earnings report. But Hughes points out that CTAS stock remains one of the best buy-and-hold stocks investors can buy and provides data supporting a higher stock price.  

Articles by Sam Quirke 

At a time when many stocks are trading lower, it's still important to be selective. That means finding undervalued stocks. One trading signal that some investors use is the relative strength indicator. This week, Sam Quirke highlights three household names trading at an RSI level, making each stock a good buy. 

Sticking with undervalued stocks, Quirke explains why the sell-off in PayPal Holdings Inc. (NASDAQ: PYPL) is reaching the oversold stage despite some current headwinds that are still in place.  

For investors looking to find a stock on a hot streak, Quirke wrote about the recent surge in Alphabet (NASDAQ: GOOGL) stock. As Quirke explains, the stock sold off sharply after a long rally. However, that looks short-lived, and he explains why the stock has room to move higher.  

Articles By Chris Markoch 

The appropriations bill for the defense department is one legislative item fueling the current standoff in Washington. A government shutdown would be detrimental to the defense sector. That's why Chris Markoch wrote about three defense stocks with a vested interest in resolving the standoff quickly.  

Markoch also reminded investors that one way to find quality stocks is to find stocks that are getting upgraded by analysts. In this article, he uses the MarketBeat Analyst Ratings Screener to give you five stocks that analysts are upgrading.

Another option for finding value in the market is to look at undervalued stocks owned by Warren Buffett. With that in mind, Markoch writes about three Warren Buffett stocks that are nearing the buy zone.  

Articles by Kate Stalter  

One of the week's big stories is the rise in oil prices. As Kate Stalter explains, higher oil prices cause dividend yields to rise. That's generating interest in three stocks that pay solid, growing dividends.  

Moving from one of the best sectors to buy today to one that looks to be warming up, Stalter wrote about the field of gene therapy. This field offers the potential to change how certain conditions are treated and, in some cases, will create treatment options for previously untreatable conditions. If you're interested in this sector, Stalter gives you three gene therapy stocks to consider.  

From stocks that are ascending to stocks that are contracting, Stalter was writing about several tech stocks that are correcting as investors wait for AI-generated revenue and earnings that match the current hype.  

Articles by Ryan Hasson 

When entire sectors of the market are dropping, observant investors will look to buy stock of companies that are dropping less than the average of the sector. That was the case with Meta Platforms, Inc. (NASDAQ: META), which, as Hasson explains may be ready for a breakout.  

If you're looking for less volatile stocks, Hasson suggests looking at that category of stocks known as the blue chips. These stocks won't dazzle in bull markets but tend to outperform when the market is selling off. Hasson gave investors three blue chip stocks that can act as safe havens for investors. 

Another strategy for stabilizing your portfolio in volatile markets is buying stocks analysts are bullish about. Hasson writes about three top-rated or upgraded stocks giving off technical signals of being oversold.  

Articles by Gabriel Osorio-Mazilli 

Many investors are becoming more convinced that we're heading for a hard, as opposed to a soft, landing. This week, Gabriel Osorio-Mazilli offered investors two strategies to invest for a hard landing. One option is to look for low beta stocks. And Osorio-Mazilli offers up three companies that deliver relatively recession-proof products. 

Another choice for investors trying to avoid a hard landing may be to look at small cap stocks. While you have to be more selective, this is a sector where many stocks are already priced for a hard landing. And this sector is generally the first to lead any broad stock recovery. With that in mind, Osorio-Mazilli offers three small cap stocks that investors should consider buying on weakness.  

Osorio-Mazilli was also writing about the solar sector, which has gone from boom to bust. But if you believe that the long-term growth story for the sector remains in place, now is the time to look for undervalued stocks like the three solar stocks that appear to be ready to shine.  

Articles by MarketBeat Staff 

Even though there seems to be no let-up in revenge travel, shareholders of JetBlue Airways Corporation (NASDAQ: JBLU). The stock has dropped into penny stock territory. The MarketBeat staff explains why that's occurred and why investors may want to follow the lead of analysts when it comes to buying JBLU stock at these prices.  

The staff also wrote about the benefits of exchange-traded funds (ETFs). These are an ideal way to get broad diversification without monitoring dozens of individual stocks. Currently, several ETFs are trading for less than $10 per share and offer exposure to several intriguing market sectors.  

Finally, what goes up must go down. That's been the case with The Clorox Company (NYSE: CLX), which is down sharply from its pandemic-fueled highs. However, the recent sell-off in CLX stock presents investors with an opportunity to buy a defensive stock with an appealing dividend.  

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