Stock Market Review – 3/18 – 3/22

Investors are taking a breather after remarks from Federal Reserve Chairman Jerome Powell sent stocks to all-time highs. Powell struck a dovish tone on March 20, including comments that made it clear that the Fed still plans to cut rates in 2024, perhaps as early as June.

This was all investors needed to step on the gas. Also fueling the rally was Reddit’s initial public offering (IPO), which generated higher-than-expected interest (FOMO anyone?).

Next week will be a shortened trading week as markets close early on Friday in observance of Good Friday. But investors will still get plenty of economic reports, including February’s reading of the personal consumption expenditures (PCE) index on Friday.

The MarketBeat team will keep an eye on these reports and other market-moving news that may affect your portfolio. Here are some of this week’s most popular articles.

Articles by Jea Yu

SoFi Technologies Inc. NASDAQ: SOFI I can’t take a break. After a solid earnings recovery, SOFI shares continue to fall, largely due to what could be a misunderstood $750 million convertible debt offering. However, Jea Yu explained why this could be an opportunity for investors to get a more attractive entry point.

Yu also wrote about the decline Walmart Inc. New York Stock Exchange: WMT shares, which finalized a 3-for-1 stock split in February. The stock is showing technical signals that suggest a pullback is likely. But Yu tells investors that strong fundamentals and likely increased demand will make any pullback an opportunity to buy WMT shares at an even more attractive price.

However, Yu explains why investors looking to buy on the dip may want to avoid EV stocks, including Nio Inc. NYSE: NIO. The company holds 45% market share in China but remains unprofitable. Until this trend changes, Yu explains why, even though NIO shares are down 44% over the past 12 months, they may have to fall further.

Articles by Thomas Hughes

This week Thomas Hughes focused on AI stocks and pointed investors to the opportunities that still exist. One of them is with Nvidia Corporation NASDAQ:NVDA. The stock is consolidating as more and more investors buy the stock. However, as Hughes pointed out, the company continues to innovate and gain market share, factors that make NVDA stock a solid investment for long-term investors.

Hughes won’t deny that NVDA stock still has a premium valuation. And if that valuation makes you long for less expensive options, Hughes offers 5 undervalued AI stocks that offer investors double-digit upside.

The biggest news this week that moved markets was the Fed’s confirmation that interest rate hikes are not just on the table, but likely. If so, Hughes cites four furniture stocks that analysts say have become comfortably undervalued and poised to rise with lower interest rates.

Articles by Sam Quirke

A recurring theme about stocks that Sam Quirke wrote about this week was “upon further review”. At the end of the week, investors received earnings reports from two of the most followed retail stocks. Lululemon Athletica Inc. NASDAQ: LULU doubled as expected, but the athleisure giant also issued soft forward guidance that sent shares lower. A similar story emerged with Nike Inc. NYSE:DI after what, on the face of it, was a solid earnings report.

However, in both cases, Quirke reminds investors to look at analyst sentiment. For both LULU and NKE, analysts are reaffirming their Buy ratings, meaning both stocks could offer investors buyable dips.

A similar theme is found with one of the most traded technology stocks. Investors rushed in Snowflake Inc. NYSE: SNOW shares in 2024 but exited just as quickly after a disappointing earnings report. However, Quirke explains why SNOW stock could be a buy, as analysts believe the sell-off is now too much.

Articles by Chris Markoch

Chipotle Mexican Grill Inc. New York Stock Exchange: CMG announced a 50-for-1 stock split pending shareholder approval. Chris Markoch wrote about why the stock jumped immediately after the announcement, but why investors who are on the sidelines might want to wait to get involved with CMG stock.

Markoch also wrote about ‘s recent earnings reports Dollar General Inc. NYSE:DG AND Dollar tree NASDAQ:DLTR. At first glance the reports were similar, but the companies tell investors two different stories.

Archer-Daniels Midland Company NYSE:ADM is moving higher after the company shed light on an accounting investigation. Markoch writes why some short-term uncertainties make ADM stock a tough trade, but the stock still appears to be a solid long-term investment.

Articles by Kate Stalter

Investors line up to buy shares of Reddit Inc. NYSE: RDDT following its initial public offering (IPO) on March 21, 2024. Kate Stalter explains why investors may be eager to invest in RDDT stock and what it could mean for future tech stock IPOs.

For investors who may be looking for non-technology stocks, Stalter suggests looking at consumer discretionary stocks, which Bank of America NYSE:BAC believes that consumer staples stocks will outperform in 2024.

Stalter also wrote about Bitcoin’s recent decline and what it might mean for investors who are piling into Bitcoin ETFs. Stalter notes that how you feel about Bitcoin ETFs will largely depend on how you feel about Bitcoin. Right now, industry analysts are optimistic on both fronts.

Articles by Ryan Hasson

Even in a stock-picking market, investors can learn a lot by looking at sector patterns. This week, Ryan Hasson looked at two industries that appear to be moving in different directions. Hasson wrote of the continued momentum in the popular Fund for selected financial sectors New York Stock Exchange: XLF. The fund is not overbought yet, but investors may want to consider taking profits from financial stocks.

On the other hand, a growing interest in the SPDR Fund Energy Select Sector New York Stock Exchange: XLE underlines the long-awaited recovery of energy stocks.

Hasson also analyzed the recent rally from the bottom PayPal Holdings Inc. NASDAQ:PYPL, which could be supported by recent technical signals. However, Hasson cautions investors that analysts remain mostly bearish on the stock, making it a cautious buy for investors looking to get involved.

Articles by Gabriel Osorio-Mazilli

Investors are becoming increasingly aware of how stock buybacks can impact the growth of the stocks they own. With that in mind, this week, Gabriel Osorio-Mazilli highlighted three large-cap stocks that have been aggressively buying back shares.

Osorio-Mazilli also highlighted increased spending in the industrial sector and why one or more interest rate cuts will be bullish for three industrial stocks.

Another story that could impact the market in the future is the possible ban on TikTok. As lawmakers continue to debate the legislation, Osorio-Mazilli looks at what could happen after a ban and explains why investors might want to keep an eye Meta Platform Inc. NASDAQ: META AND Alphabet Inc. NASDAQ:GOOGL.

Before you consider SoFi Technologies, 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 SoFi Technologies wasn’t on the list.

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

View the five stocks here