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MarketBeat Week in Review – 5/6 - 5/10

Sell in May, then go away got pushed to the side during the first full week of trading for the month. Investors were mostly in a buying mood, pushing the S&P 500 to within 60 points of its all-time high.  

If you're looking for even better news, there's some evidence that the winners are beginning to move beyond the tech sector. But finding those winners comes down to earnings. Companies delivering strong earnings reports and backing them up with solid guidance are being rewarded.  

The good market vibes could change next week when new reads on inflation are released. Investors will also get a read on consumer sentiment when retail stocks such as Walmart Inc. (NYSE: WMT) and The Home Depot Inc. (NYSE: HD) report earnings. The MarketBeat team will be covering those earnings reports as well as other stocks and stories moving the markets. Here are some of our most popular articles from this week.   

Articles by Jea Yu 

In this week's options trading focus, Jea Yu explained the long strangle strategy, which is popular during earnings season as stocks tend to see significant price moves. Long strangles allow investors to bet on the magnitude, not the direction, of the underlying stock price.  

Yu also helped investors understand how the mega-trend towards electrification 2.0 can benefit Generac Holdings Inc. (NYSE: GNRC). The stock has been struggling as demand normalizes for its signature home generators. However, the company has a significant role to play as the United States updates an aging electrical grid, including the demand that will come from data centers.  

Weight loss drugs continue to be a popular investment even as the cost of GLP-1 drugs is shrinking. This week, Yu explained why investors should view any pullback in Eli Lilly and Co. (NYSE: LLY) as a buying opportunity.   

Articles by Thomas Hughes 

With all the things to consider when researching a stock, it can be easy to overlook the person in charge. This week, Thomas Hughes focused on three companies that are good buying opportunities because of the Chief Executive Officer's leadership

While shares of The Walt Disney Company (NYSE: DIS) are down following earnings, Hughes broke down the numbers and explained why the magic is returning to the company -- and why investors should use this post-earnings dip as a buying opportunity.  

On the other hand, Hughes explained why Roblox Corporation (NYSE: RBLX) is losing its magic touch. The company, which designs games targeted at kids ages 9 to 12, saw its stock drop sharply despite a solid earnings report. The problem is that the growth isn't nearly fast enough to meet the elevated expectations that come from the metaverse.  

Articles by Sam Quirke 

One of the week's most closely watched earnings reports came from Arm Holdings plc (NASDAQ: ARM). As you'll recall, ARM stock rocketed over 100% after its February earnings report. But despite a beat on the top and bottom lines, weaker-than-expected guidance caused ARM stock to drop. Sam Quirke explained why investors can use this as a buying opportunity. 

Guidance was also an issue with Uber Technologies Inc. (NYSE: UBER). Quirke pointed out that the ride-sharing company's earnings report was solid, but shares are being repriced after the company issued weaker forward guidance. However, once that price discovery shakes out, UBER stock may be a buying opportunity for risk-tolerant investors.  

Articles by Chris Markoch 

As expected, Palantir Technologies Inc. (NYSE: PLTR) was a market mover, but not in the way that bulls had hoped for. Chris Markoch analyzed the company's earnings report, which had great headline numbers. But when Palantir guided for slightly lower revenue, traders seized the opportunity to take profit and Markoch explained that Palantir is a magnet for traders and long-term investors. The traders won the day this week, but the long-term outlook for Palantir remains strong.  

Articles by Ryan Hasson 

Micron Technology Inc. (NASDAQ: MU) was a top-performing stock heading into earnings, which had the company set up for potential disaster if it didn't deliver on earnings. But not to worry, Micron Technology beat estimates and raised its guidance. In his article, Ryan Hasson analyzed what investors should do next.  

Hasson also looked at the recent resurgence in Chinese stocks after the Chinese economy displayed significant growth in its most recent quarter. Hasson explained the opportunity that exists with three heavyweight Chinese stocks listed in the United States.

Through the first quarter of 2024, many biotech stocks have lagged the market -- but not all. Hasson analyzed three of the best-performing biotech stocks and why there could be more upside ahead.  

Articles by Gabriel Osorio-Mazilli 

There are signs that the market is shifting from growth to value. Gabriel Osorio-Mazilli highlighted three value stocks that are currently undervalued but give investors reason to believe they can provide substantial growth. 

As inflation continues to affect the price of new cars, auto parts stocks remain attractive for cyclical investors. Osorio-Mazilli analyzed the stock of three auto parts makers that will benefit not only from consumer demand but also from rising commodity prices on steel and aluminum.  

And while you're considering how rising commodity prices can benefit the auto parts makers, you may also want to look at these three metals stocks that Osorio-Mazilli believes could be poised for double-digit growth when, or if, the Federal Reserve cuts interest rates sometime this year. 

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