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MarketBeat Week in Review – 12/16 - 12/20

Stocks were mostly lower this week after the Federal Reserve confirmed that it was planning fewer rate cuts in 2025. The market had priced in a slower pace of rate cuts, but the confirmation that the number of cuts would be less than expected gave investors a reason to take profits in an extended market.

Investors got some good news to end the week when the Personal Consumption Expenditure (PCE) index reading came in slightly cooler than expected. However, the report did nothing to contradict the Fed’s decision. 

With most of the economic data in, investors will continue to look for direction in a holiday-shortened week. Markets will close at 1:00 p.m. EST on Christmas Eve and will be closed on Christmas Day. The MarketBeat team of analysts will still be keeping an eye out for signs of a Santa Claus rally and will be ready to point you to any opportunities that exist.

Articles by Jea Yu

Jea Yu covered semiconductor stocks from two distinct angles. Yu introduced some investors to Semtech Corp. (NASDAQ: SMTC), which manufactures analog and mixed-signal chips that are in growing demand from artificial intelligence (AI) applications. That moved the stock back into growth mode after bottoming out early this year, and Yu explained why there could be more upside ahead.

Yu also wrote about the potential impact of the incoming Trump administration’s proposed tariffs on the chip sector and, specifically, two chipmakers with extensive exposure to Taiwan and China.

It’s been a rough year for many restaurant stocks as consumers continue to hold their discretionary dollars. However, that hasn’t been the case for two notable fast-casual chains. This week, Yu explained why your decision to own Chipotle Mexican Grill Inc. (NYSE: CMG) or CAVA Group Inc. (NYSE: CAVA) in 2025 comes down to your desire for growth or value.

Articles by Thomas Hughes

Micron Technology Inc. (NASDAQ: MU) reported earnings this week, and the stock dropped sharply after the company’s mixed results and tepid guidance in the coming quarters. However, Thomas Hughes explained why speculative investors should look at the pullback as an opportunity because of the company’s long-term role in the ongoing AI revolution.

Hughes also highlighted another buy-the-dip candidate. Cintas Corp. (NASDAQ: CTAS) has rarely given investors a buying opportunity in the last decade. After earnings that were good but not great, Hughes explained the technical and fundamental case that supports owning the stock at these levels.

But instead of buying the dip, what about stocks that are having a good year, but analysts believe there’s even more growth ahead? Hughes gave investors three of the most upgraded stocks in 2024 and explained why each may have more room to run.

Articles by Sam Quirke

If you’ve owned Salesforce Inc. (NYSE: CRM) for the entire year, you’re celebrating a nice return on that investment. Sam Quirke checked in on the CRM software giant and found that if you missed buying it in 2024, you still have a chance for about a 20% gain and maybe more.

On the other hand, if you’ve owned shares of SolarEdge Technologies Inc. (NASDAQ: SEDG) in 2024, you’ve had a disappointing year. But Quirke explained why The Goldman Sachs Group Inc. (NYSE: GS) views the stock as a comeback story and explained the technical setup that may back up Goldman’s thesis.

Most of the conversations around autonomous vehicles focus on automotive stocks like Tesla Inc. (NASDAQ: TSLA). But this week, Quirke analyzed Aurora Innovation Inc. (NASDAQ: AUR), a leader in the autonomous trucking sector. The stock is up more than 300% in 2024 and is likely to move higher with a commercial launch set for 2025.

Articles by Chris Markoch

Palantir Technologies Inc. (NASDAQ: PLTR) is now part of the elite Nasdaq-100, and the stock continues its meteoric rise. This week, Chris Markoch explained why investors need to understand why Palantir is unique, and not just different, before making a buying decision on PLTR stock.

Markoch also looked at three consumer discretionary stocks poised for a comeback on expectations that consumer confidence will rebound in 2025.

The end of the year is a time for investors to rebalance their portfolios. And for those looking for growth stocks under $100, Markoch provided three names for investors to consider.

Articles by Ryan Hasson

Utilities stocks are normally known to be where investors flee for safety. As Ryan Hasson pointed out, that hasn't been the case in December, as one of the leading ETFs in the sector has dropped about 7%. However, investors may want to use that drop as an opportunity to get exposure to one of the nuclear stocks that Hasson highlighted.

Hasson also looked at signs that the semiconductor sector may be ready for a long-awaited recovery. If it is, Hasson explained, investors may look back at the earnings results from Broadcom Inc. (NASDAQ: AVGO) as the first of many bullish signals.

The Walt Disney Co. (NYSE: DIS) has been a comeback story almost worthy of a Disney movie. And with the stock posting a strong rally to close the year, Hasson addressed whether there’s more momentum left in DIS stock in 2025.

Articles by Gabriel Osorio-Mazilli

The price of oil has been a massive headwind for oil stocks in 2024. But Gabriel Osorio-Mazilli explained why the flight to value stocks is likely to make 2025 the ultimate time to invest in oil stocks.

At a time when many stocks are considered to be overvalued, it’s interesting that many companies continue to issue share buybacks. Osorio-Mazilli reminded investors that buybacks are a strategy a company enacts when it believes its stock is undervalued. And right now, three companies are announcing aggressive buyback plans.

Last week’s inflation data confirmed what many investors already knew. The price of many items is still moving higher. One of those is eggs. That makes it a good time for investors to own one or more of the three stocks that will benefit from rising egg prices.

Articles by Leo Miller

Artificial intelligence will continue to be a major investment theme in 2025. But it may be time to look at small-cap stocks. This week, Leo Miller analyzed three small-cap AI stocks projected to have strong revenue growth that could lift their stock prices.

Data centers will continue to be a focus in 2025, but Miller reminded investors not to forget about natural gas stocks when considering how to invest in this sector. Miller highlighted three companies that are in a leadership position in powering data centers with natural gas.

New competition in the weight loss market has stripped Novo Nordisk A/S (NYSE: NVO) of most of the meteoric gains it made in 2023 and 2024. Miller explained why the company has several catalysts that may make NVO stock a buying opportunity in 2025.

Articles by Nathan Reiff

Changes in tax policy, along with a more favorable regulatory environment, are expected to be bullish for industrial stocks in 2025. This week, Nathan Reiff gave long-term investors three industrial stocks that may offer attractive entry points.

Aerospace and defense stocks are also expected to get a boost in 2025. This week, Reiff highlighted three under-the-radar stocks that could be ready to deliver strong gains for investors.

Finally, AI is red-hot, but if you’re looking for the next big thing, it may come from quantum computing. The sector appears to be at, or near, its ChatGPT moment, and Reiff highlighted two quantum computing stocks that risk-tolerant investors may want to buy in 2025.

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