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MarketBeat Week in Review – 9/16 - 9/20

Stocks got a boost as the Federal Reserve cut interest rates. However, the 50-basis point (0.5%) cut was larger than many analysts expected. That puts the focus on the future pace of rate cuts. Specifically, could the Fed begin to cut rates much faster than expected? And if it does, what does that say about the labor market, the economy, and a potential recession?  

There are conflicting opinions. For now, investors have to rely on the best data they have. Next week that means the latest data on housing starts as well as the latest read on the Personal Consumption Expenditure (PCE) index. This is the Fed’s preferred inflation measure, and it’s expected to mirror the latest CPI and PPI readings that show the rate of inflation decreasing. 

However, there is growing concern that stimulus in the form of lower interest rates may fuel a new spike in inflation. That data won’t likely start to show that until after the election. Until then, investors should expect more volatility, and MarketBeat is here to help. Our team of analysts looks at the stocks and stories that are moving the market. Here are some of our most popular articles from this week.  

 Articles by Jea Yu 

If you’re interested in investing in the emerging space economy but don’t know where to start, you’ll want to read Jea Yu’s article on AST SpaceMobile Inc. (NASDAQ: ASTS). The stock is down 18% in the last month as some investors are selling the news after the company successfully launched its first five satellites into orbit. 

Lower interest rates are expected to boost the housing market. If that’s the case, Yu explains why Zilllow Group Inc. (NASDAQ: ZG) may offer a good setup, particularly as the company recently reiterated its in-line guidance, which may be setting a low bar to climb over.  

Yu also explained why Beyond Meat Inc. (NASDAQ: BYND) might be setting up for a bullish recovery as it launches a new steak offering while showing less cash burn and a year-over-year increase in its margins.  

Articles by Thomas Hughes 

Thomas Hughes was all over the FOMC rate cut news and helped investors understand the possible outcomes from the Fed’s decision. The takeaway from Hughes is that the overall direction may be bullish, but investors should expect volatility.  

Hughes also wrote about the disappointing earnings report from FedEx Co. (NYSE: FDX) and what it may signal for the broader economy. Underperformance from a company like FedEx is considered a leading indicator of future demand. Hughes explains why analysts believe FDX stock may remain under pressure

If you’re looking to escape the market volatility, you may want to invest in the stocks that members of Congress are buying. This week, Hughes used the MarketBeat tool to highlight the three stocks that have been bought most frequently by members of Congress in the last 90 days.  

Articles by Sam Quirke 

The week ended with the launch of the Apple Inc. (NASDAQ: AAPL) iPhone 16. The highly anticipated launch is expected to drive one of the strongest upgrade cycles for Apple in recent years. That’s because of Apple Intelligence, which the company will be launching in the next few weeks. However, Sam Quirke explains why that’s not the only reason that analysts are forecasting a potential 30% upside for AAPL stock. 

The recent rotation out of technology stocks even affected a tech stalwart like Microsoft Corp. (NASDAQ: MSFT). However, Quirke gives investors three reasons to buy this dip as it’s likely just a healthy pullback in what still appears to be a multi-year rally for the tech giant.  

And don’t look now, but Shopify Inc. (NYSE: SHOP) is in the middle of a strong rally that started at the beginning of 2023. The stock hasn’t been getting a lot of attention after its strong sell-off, but Quirke explains why its latest earnings report is getting analysts forecasting big gains.  

Articles by Chris Markoch 

No week would be complete without at least one article about NVIDIA Corp. (NASDAQ: NVDA). So this week, Chris Markoch gave investors two articles about NVDA stock. First, Markoch explained the recent announcement that the U.S. government may authorize NVIDIA to sell its GPUs to Saudi Arabia and why it may turn out to be a sell-the-news event. 

This reminds investors that when it comes to widely held stocks like NVDA, there are many reasons to buy and sell the stock. Markoch gives investors an article that highlights some of the key arguments that bulls and bears make for NVDA stock

Lower interest rates will spark sector rotation which makes this a good time to start looking for stocks that have been heavily sold. This week, Markoch gave investors three beaten-down stocks that may be ready for a comeback.  

Articles by Ryan Hasson 

The biotechnology sector offers something for long-term investors and short-term traders. But it’s important to know which one you are, particularly as it relates to a stock like Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD). This week, Ryan Hasson wrote about the 400% increase in the GLMD stock price that was fueled by a short squeeze. However, Hasson reminds investors that the price action in this small-cap stock may appeal to short-term traders but is not suitable for buy-and-hold investors.  

A stock that may offer value for long-term investors is Alphabet Inc. (NASDAQ: GOOGL). That hasn’t been the case in the last year, but Hasson explains why analysts remain bullish on GOOGL stock despite its ongoing legal and regulatory hurdles.  

Gold is up more than 33%, making it one of the best-performing asset classes in 2024. Investors looking to get in on this sector without owning the physical metal will want to read Hasson’s article on one ETF and two mining stocks that offer good entry points.  

Articles by Gabriel Osorio-Mazilli 

Now that we’re at the start of what appears to be a multi-year cycle of interest rate cuts, it’s time to look for undervalued stocks. This week, Gabriel-Osorio Mazilli highlights three undervalued stocks trading at prices that look too cheap for investors to ignore. 

Another strategy for finding stocks to buy as interest rates begin to decline is to look at the stocks analysts are upgrading. This week, Osorio-Mazilli highlights three stocks that just got analysts' upgrades and are pointing to significant upside.  

One stock receiving bullish attention from analysts is Micron Technology Inc. (NASDAQ: MU). The stock is down 24% from its August highs over concerns about inventory and cash flow. But Osorio-Mazilli explains why analysts are beginning to believe the worst may be priced into MU stock, and that means it’s a good candidate for a recovery rally.  

Articles by Leo Miller 

Mastercard Inc. (NYSE: MA) has been a solid performer in 2024. However, Leo Miller explains why the company’s recent acquisition of Recorded Future is positioning the company in the growing areas of artificial intelligence and cybersecurity at a time when consumers are more concerned about fraud prevention than ever before.  

Another growth stock that should appeal to investors is e.l.f. Beauty Inc. (NYSE: ELF). Miller explains that the company continues to grow its business and gain market share without sacrificing profitability, which should make it a stock that investors shouldn’t overlook.  

And if you’re interested in getting involved in the cryptocurrency space without putting your money into Bitcoin or any of the altcoins in the sector, Miller explains why it may be time to look at Coinbase Global Inc. (NASDAQ: COIN). While there is still concern over saturation in the cryptocurrency space, analysts still see a 51% upside in COIN stock perhaps based on optimism over its stablecoin offering.   

Articles by Nathan Reiff 

Many investors are choosing to navigate market volatility by investing in exchange-traded funds (ETFs). This week, Nathan Reiff highlighted three ETFs that could have strong upside because of their focus on areas like small-cap stocks, emerging markets, and high-yield dividends. These are the sectors that are likely to benefit from interest rate cuts.  

While much of the attention has been on gold stocks, Reiff analyzes why this is a time for investors to consider buying silver stocks. Reiff makes the case for three mining stocks that appear to have strong upside heading into 2025.  

The ongoing issues with Boeing Co. (NYSE: BA) and more recent issues with Delta Air Lines Inc. (NYSE: DAL) make it more challenging than usual to invest in airline stocks. However, with the understanding that you can always find value somewhere in a sector, Reiff analyzes three airline stocks that may be flying under the radar of investors but may offer a savvy buying opportunity.  

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