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MarketBeat Week in Review – 9/18 - 9/22

Investors are fleeing equities after remarks from Federal Reserve chair Jerome Powell on September 20. Powell reiterated the central bank's intention to keep interest rates higher for longer. That sent bond yields higher, and the market could be experiencing a flight to safety similar to what the market experienced at the beginning of the year.  

Next week's reading of the personal consumption expenditure (PCE) index will likely confirm that inflation is moving higher. And the end of a week and a quarter is always a time for increased volatility as institutional investors position their portfolios for the next three to six months.  

The takeaway is that, for now, the bears are firmly in control of the market. But there are still areas of opportunity. The MarketBeat team of analysts helps find those opportunities and help direct you to them. Here are some of the most popular articles from this week.   

Articles by Jea Yu 

You may be wondering how to invest in the growth of artificial intelligence (AI). If so, Jea Yu suggests looking for companies in defensive industries (that tend to perform well when the economy is slowing down) that offer AI solutions that add value to their customers. This includes companies that focus on national intelligence, and Yu offered up two intelligence stocks that present investors with this opportunity.  

Yu was also looking at the solar industry, which has burned some investors after a red-hot 2022. However, Yu identified two solar stocks that have withstood the sector sell-off and are likely to continue bucking that trend.  

Investors are also turning away from beauty stocks after a recovery-induced run-up in 2021. But as Yu points out, opportunistic investors have two niche health & wellness stocks that are showing signs of forming a bottom.  

Articles by Thomas Hughes 

The electric vehicle (EV) sector continues to intrigue speculative investors. This week, Thomas Hughes wrote about two of the most beaten-down EV stocks that may be ready for a turnaround. The first is Nikola Corporation (NASDAQ: NKLA), which is up 43% since September 13 as analysts are beginning to buy into the production story behind its Tre FCEV

The second EV stock is Mullen Automotive, Inc. (NASDAQ: MULN), a favorite among MarketBeat subscribers. Hughes offers hope to speculative investors with five reasons why the bottom may be forming for MULN stock.  

Turning his attention to the tech sector, Hughes was eyeing five sizzling tech companies that may have a bullish thesis to back up technical signals for a bullish reversal.  

Articles by Sam Quirke 

Sam Quirke was looking at two technology names. One of them is a well-known tech giant. The other is a lesser-known stock that should be on investors' radars. 

The well-known stock is Microsoft Corporation (NASDAQ: MSFT). The stock has sold off 15% since August, but as Quirke notes, this is an example of when investors can look at this as a buying opportunity and presented three reasons why MSFT stock is likely to make new highs

The lesser-known stock is Western Digital Corporation (NASDAQ: WDC). Quirke notes that WDC stock is up more than 40% in 2023, reversing a multi-year slide. And strength in the company's core business should give investors a reason to buy into this rally.  

Articles by Kate Stalter  

Market corrections can send investors fleeing the market. However, Kate Stalter had three ideas for investors who are still looking for opportunities. One idea is to look at healthcare stocks. Historically, consumers in this sector will continue to spend even when the economy is slowing, as analysts expect in the fourth quarter. 

Dividend stocks are another opportunity for long-term investors looking for income and portfolio growth. This is particularly true when a company increases its dividend. And Stalter gave investors three dividend stocks that are boosting their dividend payouts

And if you're looking for a company that offers a high dividend yield and a growing dividend, Stalter makes a case for Enterprise Products Partners (NYSE: EPD), which is outperforming its midstream competitors in the surging energy sector.  

Articles by Ryan Hasson 

There are many reasons investors should own Nvidia Corporation (NASDAQ: NVDA) shares. However, for companies looking for another bullish option in the chip sector, Ryan Hasson gives investors three reasons why Advanced Micro Devices, Inc. (NASDAQ: AMD) should be on your watch list if not in your portfolio.  

From a chip maker to companies and sectors that will benefit from the advances in chip designs, Hasson was writing up the virtual reality (VR) sector. This field has a long runway, but it's important to stick with proven performers, and Hasson offers up three VR stocks leading the way.  

However, many investors are looking for more conservative investment options to ride out the market volatility. Hasson offers up three exchange-traded funds (ETFs) that invest in stocks and sectors that appeal to conservative buy-and-hold investors.  

Articles by Gabriel Osorio-Mazilli 

The auto workers strike is creating a feeling of déjà vu for investors. As Gabriel Osorio-Mazilli writes, this is creating an opportunity for auto parts makers. The thinking is simple. If new car production is halted, consumers will have to keep their existing rides in working order. And Osorio-Mazilli gives investors three auto parts maker stocks that look like buying opportunities. 

Osorio-Maxilli was writing about another sector that is bucking the economic narrative. In an industry known for seasonality, three restaurant stocks continue to move higher despite continued pressure on the consumer. 

And as the price of crude oil moves above $90, it puts more emphasis on clean energy. Despite being one of the only true forms of clean energy, nuclear energy and nuclear energy stocks are not enjoying the same gains as other clean energy stocks. But if you have the time to wait and appropriate risk tolerance, Osorio-Mazilli highlights three nuclear stocks that may be worth the wait.  

Articles by MarketBeat Staff 

Great minds think alike. The MarketBeat staff was also picking up on the auto parts narrative. In this case, they were writing about four auto parts retailers and explaining why two are moving in a positive direction and two are stocks for investors to avoid.  

The MarketBeat staff was also looking at Etsy Inc. (NASDAQ: ETSY) and reminding investors that when a stock that's been falling gets an analyst upgrade that's backed up by solid fundamentals, it's often a signal that the bottom is in.  

And we leave you this week with a potentially sweet idea for your portfolio. That is the recent purchase of Hostess Brands by the J.M. Smucker Company (NYSE: SJM). So far, the market isn't as bullish on the deal as Smucker is forecasting. However, the drop in share price is putting the dividend yield at its highest level in over a year, which can look very tasty to investors looking for the relative safety of dividend stocks.  

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