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MarketBeat Week in Review – 9/30 - 10/4

Good news is good news again. Stocks turned positive after a strong jobs report, and the announcement of a temporary settlement in the port strike offset continued turmoil in the Middle East. The bigger question is if this is the start of a longer trend or just a knee-jerk reaction.  

The continued moderation of inflation will be a key factor in answering that question. Investors will get more data on that next week when the September readings of the consumer price index (CPI) and producer price index (PPI) are released.

Next week also marks the start of the third quarter earnings season. In addition to the big banks, investors will hear from key names like Pepsi Co. Inc. (NASDAQ: PEP) and Delta Air Lines Inc. (NYSE: DAL), which should provide a glimpse into the state of the consumer. 

The MarketBeat team will be all over these reports as well as the other stocks and stories that are moving the market. Here are some of our most popular articles from this week.  

Articles by Jea Yu 

Artificial intelligence (AI) and data centers are two sectors that will continue to drive the markets in 2025. This week, Jea Yu analyzed two energy stocks that are fueling the AI data center boom while also focusing on the growing demand for renewable energy.  

Another stock that gives investors a way to play the data center sector is Seagate Technology Holdings plc (NASDAQ: STX). The company is the world’s leading manufacturer of hard disk drives (HDDs). The demand for data storage is one reason the stock is up over 27% this year, and Yu explains why the stock’s momentum may continue to grow.  

Small-cap biopharmaceutical companies can be among the more volatile medical stocks. However, investors who owned shares of Capricor Therapeutics Inc. (NASDAQ: CAPR) were treated to a gain of over 100% as the company filed for full FDA approval of its Duchenne muscular dystrophy (DMD) therapy, deramiocel. In his article, Yu explains why the stock could have more room to move higher. 

Articles by Thomas Hughes 

Few topics stir the passion of investors, like hearing which stocks members of Congress are profiting from. However, rather than getting angry, you can learn how to trade like they do. This week, Thomas Hughes directed investors to two exchange-traded funds (ETFs) that have a focus that aligns with the sectors that members of Congress love to buy.  

Hughes was also looking at the fall in NIKE Inc. (NYSE: NIK) stock after the company’s weak earnings report and lackluster guidance. However, with the company in the early stages of a transition that includes a new CEO, analysts are signaling that investors may want to use this pullback as a reason to “just do it” when it comes to buying NKE stock.  

Joby Aviation Inc. (NYSE: JOBY) has been one of the most discussed stocks in 2024. The flying car stock got a lift of 15% this week when it announced receipt of $900 million in additional funding from Toyota Motor Corp. (NYSE: TM). The funding will help ensure that Joby has enough cash to get through certification and into production.  

Articles by Sam Quirke 

Struggles? What struggles? That’s the question that Broadcom Inc. (NASDAQ: AVGO) investors may be asking as AVGO stock continues to buck the broad slowdown in the chip sector. This week, Sam Quirke explained the price action in the stock and why analysts believe it may have room to move higher.  

Keeping his eye on technology stocks that may continue to outperform, Quirke analyzed the current move in Microsoft Corp. (NASDAQ: MSFT) stock. Quirke explains why investors may want to zoom out from the recent sell-off and focus on the company’s strong fundamental outlook.  

Speaking of oversold stocks, Quirke also looked at three stocks that were oversold based on the commonly used Relative Strength Indicator (RSI). Quirke explains what the RSI measures and analyzes three stocks that may be a buying opportunity based on their current RSI.  

Articles by Chris Markoch 

During September, the S&P 500 hit a record high on many occasions. But its failure to break out confirms weaker buying activity. However, as Chris Markoch explains, that can be an opportunity for investors to look for stocks that are ready to break out. Markoch highlights three stocks that could be solid breakout candidates as the S&P 500 meets resistance. 

Earnings season starts next week and Markoch gave investors four stocks that are poised for growth and a solid earnings outlook could send many of these picks much higher to end the year.  

Markoch also analyzed the news that the Federal Trade Commission (FTC) approved the merger between Chevron Corporation (NYSE: CVX) and Hess Corp. (NYSE: HES). But as Markoch explains, there are many reasons why investors may want to buy undervalued CVX stock before its earnings report that goes beyond the merger.  

Articles by Ryan Hasson 

The recent sell-off in the chip sector may have some investors wondering if it’s time to buy the dip. If that’s your mindset, Ryan Hasson gives you three investment ideas in the chip sector. Not surprisingly, Hasson reminds investors to focus on the best in class to find the winners.  

If you’re looking for opportunities to invest in the emerging space economy, Hasson gives investors three small-cap space stocks that could reward risk-tolerant investors who are looking for the possibility of market-beating returns.  

Energy stocks are also expected to rally into 2025 due to geopolitical tensions in the Middle East and economic stimulus in both the United States and China. Hasson provides investors with three energy stocks that are poised for strong gains.  

Articles by Gabriel Osorio-Mazilli 

Chinese stocks have been on fire since the Chinese government announced new and aggressive stimulus measures. One of the most outspoken China bulls has been David Tepper who went as far as to say investors should be “buying everything” as it relates to China. Gabriel Osorio-Mazilli dives into that thesis and explains which China stocks may be the best buys right now. 

Of course, NVIDIA Corp. (NASDAQ: NVDA) remains one of the most discussed stocks. This week, Osorio-Mazilli helps investors understand the recent choppy price action and what technical signals they can look for to determine if the stock is in a correction or a consolidation.  

If you want to escape the market volatility altogether, Osorio-Mazilli looked at three low beta stocks. Beta is a measure of volatility. So low beta stocks tend to produce smaller average daily moves from other stocks in a corresponding index (i.e., lower highs but higher lows). Since the period before a presidential election tends to be volatile, this could be a good time to shelter your portfolio with one of the stocks in his article.    

Articles by Leo Miller 

Costco Wholesale Corp. (NASDAQ: COST) stock is down slightly since its most recent quarterly earnings report. This week, Leo Miller explains why the company’s fundamentals suggest that this pullback could just be due to analysts being overly cautious. In any event, a pullback of any size would signal a solid buying opportunity.  

If you’re looking for stocks that are already in a slump, Miller highlights three bargain stocks that are underperforming the 20% growth in the S&P 500 but have catalysts that should spur a recovery in the next 12 months. 

Miller also had three stock picks for income-oriented investors. Dividend stocks are a solid choice for investors, especially companies that balance stock price growth with a healthy dividend. This week, Miller analyzes three dividend stocks with dividend yields of over 5% but still have enough cash to fuel future growth. 

Articles by Nathan Reiff 

There are many options available to investors who want to get exposure to some of the market’s hottest sectors. And for many investors, ETFs make a lot of sense. Investors get exposure to dozens of stocks when they buy one fund. This week, Nathan Reiff highlights five ETFs focusing on the themes and stocks investors will want to own now and through 2025.  

Since the Federal Reserve cut rates, the market has been on fire. This may leave investors with analysis paralysis when it comes to finding opportunities. Reiff reminds investors to keep it simple by highlighting the case for why Visa Inc. (NYSE: V) and Mastercard Inc. (NYSE: MA) will be names to watch as consumers continue to use credit cards as an inflation management tool. 

Finally, investors with a healthy risk appetite may enjoy the risk-reward that comes from penny stocks. If you fit that description, you’ll enjoy Reiff’s article, which analyzes four of the best penny stock opportunities in October 2024.  

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