MarketBeat Review of the Week – 2/5 – 2/9

The markets sang a familiar tune to investors this week. 10-year Treasuries were down, so stocks were up. The S&P 500 index is close to an all-time high of more than 5,000, and the tech-heavy Nasdaq continues to push higher. There has also been an upward movement in oil prices. And towards the end of the week, Bitcoin was back above $47,000.

But there has also been some positive movement in the Russell 2000 Index. If small-cap stocks start to pick up a bid, it would signal the broadening rally that investors have been waiting for.

However, next week could bring a jolt to reality in the form of the latest inflation data. January CPI and PPI data will be released on Tuesday and Friday respectively. If the reports provide any clue that the pace of inflation is not easing, that could stop the rally in its tracks. Conversely, if data shows that inflation is trending lower, hopes will be renewed that the Federal Reserve will start cutting rates as soon as possible.

Articles by Jea Yu

Investors continue to invest in AI stocks. This week, Jea Yu explained why investors should watch UiPath Inc. NYSE: PATH. The world’s largest provider of end-to-end robotic process automation (RPA) and business process automation (BPA) platforms is experiencing strong annual recurring revenue (ARR) growth, which could be a game changer for the profitability of the company.

Yu also wrote about how The Clorox Co. New York Stock Exchange: CLX presented a great earnings report. The double beat sent CLX shares higher. However, Yu explains why investors are wondering whether the company’s revenue growth comes from increased sales or simply from retailers normalizing their inventory following the cyber attack that hit the company in August 2023

We’re almost halfway through earnings season, and so far, most companies are beating earnings estimates. But some companies are Truly beating estimates. Yu offers investors three companies that have more than doubled analysts’ earnings per share (EPS) estimates.

Articles by Thomas Hughes

Thomas Hughes wrote about two stocks that are moving in different directions after reporting earnings. The Walt Disney Company NYSE: DIS reported earnings this week and gave investors more than faith, trust and magic dust. The company has increased its recently reinstated dividend, is buying back shares and is starting to see the effects of cost-cutting efforts on its bottom line.

On the other hand, McDonald’s Co. NYSE: MCD shares fell slightly after the company slightly missed profits and said its focus will be on containing costs for its customer base. However, Hughes writes that strong profits continue to make MCD stock a buy on a dip.

Hughes also updated investors on the status of Mullen Automotive Inc. NASDAQ: MULN. Hughes points out that the company is now licensed for sale in all 50 states, with production and revenues increasing. However, investors should keep an eye on the liquidity situation the commercial electric vehicle (EV) maker will need to cross the finish line.

Articles by Sam Quirke

This week, Sam Quirke wrote about the recent earnings report provided by Atlassian Society NASDAQ: TEAM. The company beat the headline numbers, but offered weak guidance that sent the stock lower. But as Quirke notes, the company has some defenders in the analyst community that make this software stock a buy-the-dip candidate.

Nvidia Corporation NASDAQ:NVDA AND Advanced Micro Devices Inc. NASDAQ:AMD receive a lot of attention in the chip industry. But Quirke explained it Cirrus Logic Inc. NASDAQ: CRUS is an under-the-radar name that investors may want to pay close attention to.

Quirke also revisited his bullish call Enphase Energy Inc. NASDAQ:ENPH. Despite the downturn in the solar sector, Quirke expects the rally in ENPH stock that began in November to strengthen this year.

Articles by Chris Markoch

Meta Platform Inc. NASDAQ: META has been a clear winner in the tech sector this earnings season. However, Chris Markoch has set his sights on three of the best tech stocks that investors should consider if they are looking for tech stocks that can offer better near-term upside.

If the market rally broadens, small-cap stocks are likely to benefit. This would help biotech investors who traditionally invest in these companies, some of which are moonshots. Putting the two categories together, Markoch provided a list of three small-cap biotech stocks that could have catalysts in 2024.

Palantir Technologies Inc. NYSE:PLTR we started the week off great. The stock rose more than 44% after the company beat earnings and earnings expectations and offered a bullish outlook that shows the company continues to calm its skeptics.

Articles by Kate Stalter

The S&P 500 is near a record high above 5,000, and for many investors the question is: why? Opinions abound, and this week Kate Stalter offered her take on why higher earnings could be the reason.

When picking winning and losing stocks, it pays to follow the money. On AI, Stalter writes that several companies plan to increase AI spending in 2024. And Stalter points investors to four companies benefiting from this AI spending, which should boost their stocks upwards.

Higher interest rates for a longer period historically push investors into financial, healthcare, utilities and energy stocks. This week Stalter wrote about why history may or may not repeat itself in each industry.

Articles by Ryan Hasson

This week, Ryan Hasson wrote about the question on the minds of many growth investors. Will the Magnificent 7 stocks be able to outperform in 2024? Hasson outlines the pros and cons of each of these stocks in 2024.

Hasson also wrote about ‘s latest milestone Archer Aviation Inc. NYSE:ACHR. The stock enjoys favorable sentiment from analysts. However, Hasson notes that short interest is through the roof (no pun intended) and may add volatility to the stock in the short term.

Articles by Gabriel Osorio-Mazilli

One of the most anticipated earnings reports of the week has arrived PayPal Holdings Inc. NASDAQ:PYPL. Before earnings plummeted, Gabriel Osorio-Mazilli explained why PayPal offers good value, especially if the Fed cuts interest rates as expected. Headwinds remain, but the market share leader appears to be undervalued.

Another highly anticipated earnings report has arrived Eli Lilly and company NYSE: LLY. The stock is rising after a double earnings beat. If you had read Osorio-Mazilli’s article before the report, you would have been aware that analysts were moving the stock higher, which is a reasonably accurate predictor of what the company will report.

Osorio-Mazilli also wrote about how utilities stocks could benefit from rising oil prices due to the ongoing conflict in the Red Sea. She explains how she identified three utility stocks that are undervalued and growing faster than the industry average using simple stock screening tools.

Articles by MarketBeat staff

The Nasdaq index shows no signs of slowing down. And investors should be cheered by the fact that the rally is starting to surpass the Magnificent 7. With that in mind, the MarketBeat staff has put together a list of three smaller Nasdaq stocks that are likely to post bullish earnings numbers.

On the opposite end of the spectrum, the staff was looking at three Dow stocks that have had a rough start to the year and face headwinds that will likely keep them from moving higher in the near term.

Before considering UiPath, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and UiPath wasn’t on the list.

While UiPath currently has a “Hold” rating among analysts, top analysts believe these five stocks are better buys.

View the five stocks here