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MarketBeat Week in Review – 8/28 - 9/1

The markets ended the week with mixed results as stocks enter what is historically the toughest month of the year. The jobs report offered some hope that the Federal Reserve may hold interest rates where they are. But this is a trader's market, and many investors may be snapping up profits before a long holiday weekend.  

Volume will likely pick up after Labor Day as institutional investors return to the market. With the major indexes facing significant resistance levels, the increased volume will likely move stocks in one direction or another. History says investors should brace for a sell-off.  

However, that sentiment could change when the new CPI and PPI numbers come out in the middle of the month. That will be the last data point for the Fed to digest before it announces its decision on interest rates on September 20.  

It will be a short trading week as U.S. markets will be closed on Monday to observe the Labor Day holiday. As you plan your activity for next week, here are some of the most popular stories from the MarketBeat analysts this past week.  

Articles by Jea Yu 

Investors who read Jea Yu's article about how dollar stores are underperforming the market were prepared for the weak report delivered by Dollar General Corporation (NYSE: DG) this week. Yu writes that even these discount chains are finding earnings tough to come by as consumers prioritize staples over discretionary purchases. 

Ford Motor Company (NYSE: F) is another company feeling pressure for different reasons. Specifically, the looming strike by the United Auto Workers (UAW) is pressuring the company's production just as the automaker is seeing a surge in electric vehicle (EV) production.  

And despite concerns about artificial intelligence (AI) being in a bubble, Yu reminds investors that this sector is still in its infancy. With that in mind, Yu wrote about five AI-themed penny stocks that could produce outsized gains for risk-tolerant investors.  

Articles by Thomas Hughes 

Thomas Hughes focused on AI opportunities and approached the sector from two angles for different investors. For income-oriented investors, AI stocks aren't typically associated with dividend payers. But as Hughes writes, there are still opportunities to find AI stocks that offer high-yield dividends that income investors will enjoy. 

Another way to invest in AI is to look at where the technology is going. That should make you look at stocks of companies involved with computer vision. The companies in this sector are helping to industrialize AI, and Hughes offers five computer vision companies that investors should watch in this growing sector. 

Hughes was also writing about one of the big stories of this week. That was how 3M (NYSE: MMM) had settled its long-standing earplug lawsuit. Now that the dust is settling and analysts know how the settlement may impact earnings, Hughes gives investors five reasons why investors may want to take a close look at this potentially undervalued Dividend King.  

Articles by Sam Quirke 

Every investor loves a good comeback story – especially when they own a particular stock. This week, Sam Quike wrote about two stocks making strong comebacks in 2023. In the case of Oracle Corporation (NYSE: ORCL), the bullish case centers around AI, and that has pushed the stock up 100% in 2023. However, as Quirke notes. The proof is in the performance, and for now Oracle is delivering. 

Netflix, Inc. (NASDAQ: NFLX) was also one of 2022's biggest losers. Investors were concerned about the streaming giant's ability to pivot into an ad-supported tier and cracking down on password sharing. But once again, the proof is in the company's performance. And Quirke gives both fundamental and technical investors ways to invest in NFLX stock.  

Speaking of 2023 winners, Quirke was writing about three online retailers among the year's biggest winners. With retail theft remaining a front-burner issue for brick-and-mortar retailers, these may be stocks to watch for the rest of the year.  

Articles by Kate Stalter  

As the rally in growth stocks is losing steam, Kate Stalter reminds investors that dividend stocks are a good area to pivot. This week, Stalter analyzed three undervalued dividend stocks with high yields. Stalter reminds investors that having one or more strong dividend payers in your portfolio is a good strategy to offset losses in other areas. 

If you're invested in pharmaceutical stocks, you’ll want to check out Stalter's analysis of how next year's Medicare price negotiations may impact the health of some blue-chip big pharma stocks. This is a complicated issue, and Stalter helps explain what investors need to know from both sides.  

And, like many of our MarketBeat analysts, Stalter was looking at a popular AI stock. However, in the case of Marvell Technology, Inc. (NASDAQ: MRVL), Stalter was quick to note that stocks that saw eye-popping share price growth may find it hard to convince analysts that they can maintain their valuations. That's the case with MRVL stock, which is down even after posting strong (but not strong enough) earnings.  

Articles by Ryan Hasson 

Insurance stocks have underperformed the market for several reasons. However, as Ryan Hasson noted this week, at least two insurance stocks are giving off technical signals that could point to a reversal of fortune and potential breakout opportunities for investors. 

One stock that's had no problem breaking out is Celsius Holdings, Inc. (NASDAQ: CELH). In fact, with the stock up 75% for the year, many investors would logically expect a pullback. However, Hasson writes that there are some technical reasons why this may be a bull that still has some room to run.  

And even if you don't invest in cryptocurrency, you'll want to pay attention to the news this week that caused a spike in crypto prices, particularly Bitcoin (BTC), which jumped 8%. Specifically, a federal district appeals court ruled in favor of Grayscale Bitcoin Trust (OTCMKTS: GBTC), which sets the stage for its conversion into an exchange-traded fund (ETF). As Hasson writes, this would be bullish news for three bitcoin stocks, which can expose investors to cryptocurrencies without investing directly in the digital currency.  

Articles by Gabriel Osorio-Mazilli 

Investing in the healthcare sector has been a profitable strategy for many investors. This is particularly true when you can find undervalued companies hiding in plain sight. Gabriel Osorio-Mazilli pointed investors to two such names this week and explained that while Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has a juicier dividend yield than its rival CVS Health Corporation (NYSE: CVS), investors might do well to simply own both stocks. 

Osorio-Mazilli was also looking at two online car sales platforms that are getting attention from analysts. As it becomes harder for traditional brick-and-mortar car dealerships to move inventory without heavy discounting, these online platforms are starting to look more appealing to consumers and investors.  

Turning his eye to the retail sector, Osorio-Mazilli made a case for beaten-down Target Corporation (NYSE: TGT). The stock decline may not be without reason. However, Osorio-Mazilli makes the case that TGT stock looks oversold at its current level. This may present an opportunity for investors who believe the worst may be over for the beleaguered retailer.  

Articles by MarketBeat Staff 

Value investors live by the principle of building long-term wealth by investing in undervalued companies. The P/E ratio is one of the most common metrics that value investors use. Fortunately, several exchange-traded funds (ETFs) hold companies with low P/E values. This week, the MarketBeat staff identified three low P/E stock ETFs for investors to consider. 

Turning to a specifically undervalued company, the MarketBeat staff explained why the recent sell-off in DICK'S Sporting Goods, Inc. (NYSE: DKS) has probably gone too far. You can read their article for three reasons why DKS stock may offer great value now.  

Another stock that has sold off after earnings is Deere & Company (NYSE: DE). The sell-off wasn't like Dick's, which is dealing with a weak consumer and retail shrink. Instead, Deere's stock fell despite a beat and raise earnings report. As the staff writes, sometimes you just take the opportunities the market gives you and provides five reasons to buy DE stock on the dip.  

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