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MarketBeat Week in Review – 3/4 – 3/8

The market rally continues as talk of a soft landing heats up again. The February Jobs Report added fuel to that talk, with the unemployment rate hitting 3.9%. Anything above 4%, which may be achieved next month, would signal to the Federal Reserve that rate cutting can begin. 

Another reason to believe in this rally is that money is beginning to flow away from some of the Magnificent 7 stocks into other sectors. This broadening out, especially if it starts to extend into small-cap stocks, is what many analysts have been waiting for.  

However, if next week's readings on CPI and PPI come in hot, the rally could stop in its tracks. The MarketBeat team will be following those numbers as well as corporate earnings, which have been mostly stronger than expected. Here are some of the most viewed articles from this week.  

Articles by Jea Yu 

Artificial intelligence stocks are stirring up FOMO in the market. This is a time when Investors have to be careful as many companies try to ride the coattails of Nvidia Corporation (NASDAQ: NVDA). However, Jea Yu explains why you might want to consider Pure Storage Inc. (NYSE: PSTG), a company partnering with Nvidia to build the emerging AI infrastructure.  

Stocks of companies producing weight loss drugs are also stirring up some FOMO. As a different way to play that market, Jea Yu suggests looking at two packaged meat stocks that are positioned to capitalize on the carnivore diet craze fueled by drugs like Ozempic. 

And while gene editing stocks may not be at the FOMO stage yet, they may be soon. Beam Therapeutics Inc. (NASDAQ: BEAM) is a company on the cutting edge of this sector and surprised investors with a double beat in quarterly earnings fueled, in part, by a deal that the company has in place with Eli Lilly and Company (NYSE: LLY).  

Articles by Thomas Hughes 

Apple Inc. (NASDAQ: AAPL) has been anything but magnificent in 2024. In addition to softening iPhone sales in China, the tech giant delivered investors more bad news this week when it announced that it was walking away from plans for its own autonomous vehicle. Thomas Hughes explains why the story of AAPL stock is about innovation outside of the Apple Car. That lack of innovation is why Hughes believes the stock may have further to fall.  

Membership clubs have been among the best investments in a difficult retail environment. Their business model commits consumers to a membership fee, which helps them maintain a higher share of their members' wallets. As Hughes writes, you can keep chasing Costco Wholesale Corp. (NASDAQ: COST) higher. However, a better play might be to buy one of the three membership club stocks that may pull back as the sector loses momentum.  

And as earnings season winds down, investors frequently look for stocks that analysts are upgrading. Hughes looked at MarketBeat's list of Most Upgraded Stocks to give you this list of three stocks that have been getting the most analysts' upgrades in the last 90 days.  

Articles by Sam Quirke 

Sam Quirke frequently writes about the tech sector. This week, he looked at two of the Magnificent 7 stocks that he believes still look like solid investments. Alphabet Inc. (NASDAQ: GOOGL) has been a poor performer recently, but Quirke shows that analysts are taking the long view, and investors should consider doing so as well.  

In the case of Microsoft Corp. (NASDAQ: MSFT), Quirke observes that the pullback is more of a consolidation and that analysts are already bidding up the stock, including one analyst who has a $500 price target on MSFT stock.  

And while you may not be familiar with Paymentus Holdings, inc. (NYSE: PAY), Quirke notes that you may want to start paying attention. The $2.5 billion fintech company just delivered a strong earnings report that sent the stock into overbought territory. However, Quirke explains why investors should welcome a pullback as an opportunity to get in on this emerging company among finance stocks.  

Articles by Chris Markoch 

Palantir Technologies Inc. (NYSE: PLTR) moved sharply this week after the company was awarded a contract from the U.S. Army. Chris Markoch wrote about the specifics of the deal and whether it should impact your decision to buy or hold PLTR stock.  

Markoch also wrote about a stock moving sharply in the other direction. UnitedHealth Group Inc. (NYSE: UNH) is reeling from a recent cyberattack as well as the announcement that the company is the subject of a Department of Justice (DOJ) probe. However, investors have to decide for themselves whether this is a buyable dip or if UNH stock is a falling knife

And whether you like Cathie Wood or not, the stocks she buys move markets. So you may be interested in learning why Wood sold her fund's shares of NVDA stock to buy shares of UiPath Inc. (NYSE: PATH)

Articles by Kate Stalter  

This week, Kate Stalter reminded investors to keep it simple by following the advice to buy low and sell high. The first half of that axiom means buying stocks that look undervalued. This means that the companies are trading below their intrinsic value based on underlying fundamentals. Stalter wrote about five undervalued stocks that have recently delivered strong earnings performance. 

On the other hand, Stalter also found five stocks that look overvalued. As Stalter explains, long-term investors may choose to hold these stocks if they like the long-term fundamentals. However, traders may want to take this opportunity to sell these stocks and look for better opportunities. 

Restaurant stocks have been surprisingly good performers despite sticky inflation. One of the best in the sector is the Mediterranean restaurant chain Cava Group Inc. (NYSE: CAVA). The stock is up 60.96% in the last three months and could have further to run.  

Articles by Ryan Hasson 

Suppose you're a speculative investor looking for a way to invest in artificial intelligence stocks. In that case, you'll want to read Ryan Hasson's article about five under-the-radar AI stocks that are likely to heat up as risk-on sentiment returns to the market. 

Another group of stocks that risk-tolerant investors may want to consider buying are those stocks that have unusually high short interest. As Hasson explains, this can create a situation where even a small move higher could trigger a round of short covering that traders can take advantage of.  

And if you're still hesitant about chasing Nvidia as it approaches $900 a share, investors looking for technology stocks in the chip sector should consider Advanced Micro Devices Inc. (NASDAQ: AMD). The company is providing AI chips that are a worthy competitor to Nvidia, which will be bullish for AMD's stock price.  

Articles by Gabriel Osorio-Mazilli 

Like many MarketBeat analysts, Gabriel Osorio-Mazilli also helped guide investors seeking alternatives to NVDA stock. This week, he focused on Broadcom Inc. (NASDAQ: AVGO), trading at a 30% discount to Nvidia. Analysts are beginning to bid the stock higher on the belief that it can start delivering Nvidia-like growth. 

Investors who are looking to take a different approach to generating profits outside of AI can consider oil stocks. This week, Osorio-Mazilli explains why the price of oil is almost assuredly going up and why that makes three particular oil stocks good values.  

And if you're looking for stocks that can benefit from an interest rate cut, Osorio-Mazilli explains why you may want to consider Foot Locker Inc. (NYSE: FL). The stock trades at a significant discount to the retail sector, setting the stage for a strong recovery.  

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