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MarketBeat Week in Review – 10/2 - 10/6

Markets remain under pressure. This week, investors were spooked by the apparent hiring surge in September. The jobs report showed that over 370,000 jobs were created in September. At midday on Friday, the S&P 500 was close to a critical level of support at around 4,200.  

Next week will give investors the latest read on the consumer price index (CPI) and the producer price index (PPI). Both numbers are expected to show that inflation will continue reversing the downward trend that started last month. The week will end with the kickoff of earnings season. That means reports from the big banks. 

October is starting off as another scary month for investors, but opportunities still exist. The MarketBeat team continues to sift through the data to help point you to the stocks and trends that can help sustain your portfolio in these volatile times. Here are some of the top stories from this week.  

Articles by Jea Yu 

Nvidia Corporation (NASDAQ: NVDA) is one of this year's hottest stocks as investors make the link between the company's products and the rapid growth of artificial intelligence (AI). Jea Yu explains why the stock is giving off a technical signal that shows why the recent sell-off is a clear buying signal for investors looking to start or add to a position. 

Sticking with AI, Yu explained why Cloudflare, Inc. (NYSE: NET) is the cloud-based security and services company that is best positioned as businesses look to host AI data at the network edge.  

The Ukraine War is showcasing that drones are now big business for multiple sectors of the economy. This week, Yu gave investors three drone stocks to consider if they want to invest in this growing sector.  

Articles by Thomas Hughes 

In times like these, playing defense doesn't have to mean avoiding stocks altogether. This week, Thomas Hughes gave investors two great strategies for opportunistic investors. First, there's dividend stocks. Hughes wrote not one but two articles that showcase dividend-paying stocks that are ready to increase their dividends. One of the articles included stocks that are trading at near rock-bottom prices

Another strategy when investing in dividend stocks is to look for low-beta stocks. As Hughes notes, "Low-beta stocks trade with less volatility than the S&P 500, which can lower risk in a portfolio while opening the door to outperformance." And the five stocks that Hughes writes about also have a high dividend yield. 

On the other end of the spectrum, Hughes used MarketBeat's Most Active Penny Stocks tool to highlight five penny stocks with bullish outlooks and favorable catalysts that could push the stocks higher.  

Articles by Sam Quirke 

Every investor loves a good comeback story. This week, Sam Quirke was eyeing three stocks that opportunistic investors may want to keep an eye on.  

First, there's The Walt Disney Company (NYSE: DIS). The stock is trading near 10-year lows despite record revenue. Quirke explains why the market is beginning to take note of that discrepancy and why it may be time for you to get involved

Next, there's Foot Locker, Inc. (NYSE: FL). The stock is down sharply and not without reason. It's been a dreadful year from a fundamental standpoint. But Quirke notes that sometimes the bears go too far, which seems to be the case with FL stock.  

Quirke also wrote about the Ralph Lauren Corporation (NYSE: RL). The stock has been range-bound for much of the year but is showing signs that there could be a breakout to the upside.  

Articles by Kate Stalter  

This week brought a surge in bond yields. As Kate Stalter wrote, this may cause investors to choose the safety of fixed-income investments over dividend stocks. But as Stalter writes, it also created a flight from dividend stocks to some of this year's hot technology and growth stocks.  

That being said, dividend stocks are still an ideal choice for volatile markets, particularly when those stocks come with a high dividend yield. This week, Stalter pointed investors to a cyclical sector, oil tankers, that offer that kind of dividend yield. And specifically, Stalter explained why Frontline plc. (NYSE: FRO) provides a 17% yield to go along with 74% year-to-date stock price growth.  

Stalter also helped investors understand the discrepancy between the performance of FedEx Corporation (NYSE: FDX) and United Parcel Service, Inc. (NYSE: UPS). FedEx is the clear winner, and Stalter gives investors a reason behind the stock's 2023 gains.  

Articles by Ryan Hasson 

Your investment opportunities often depend on your investment style. Investing in stocks that are candidates for short squeezes can be risky, but if it fits your style, Ryan Hasson explains why Groupon, Inc. (NASDAQ: GRPN) is a stock you'll want to have on your watchlist. 

If you're an investor who likes to buy stock on momentum, Hasson explained why analyst sentiment surrounding Meta Platforms, Inc. (NASDAQ: META) likely means the stock can continue building on its strong year-to-date performance. 

And if you're an investor who prefers to stick with blue-chip stocks, Hasson wrote about Microsoft Corporation (NASDAQ: MSFT). Analysts continue to upgrade the stock, which means investors should have confidence buying into the 18% upside for MSFT stock.  

Articles by Gabriel Osorio-Mazilli 

Chip stocks remain one of the hottest sectors for investors to consider, and some of that excitement centers around China. However, as Gabriel Osorio-Mazilli writes this week, many investors prefer these chip makers offering a more diversified supply chain. 

Osorio-Mazilli was also looking at the beaten-down housing market. While it may not be time to buy a home, he offered up three oversold, home-adjacent stocks that are showing low risk with the potential for a high reward. 

For investors looking for even less risk, Osorio-Mazilli suggests investors look at The Coca-Cola Company (NYSE: KO), which is moving into oversold territory and creating a no-brainer buying opportunity for fans of this Warren Buffett stock.  

Articles by MarketBeat Staff 

A time-honored investment strategy is that one year's market losers frequently turn out to be the next year's market winners. With that in mind, the MarketBeat staff wrote about three stocks that are among this year's biggest underperforming stocks in the S&P 500. However, each has a catalyst that makes them likely turnaround candidates in 2024. 

Speaking of turnarounds, many restaurant stocks have been selling off. For some stocks, the sell-off is deserved. But the sell-off in other stocks looks overdone. This week, the MarketBeat staff looked at two restaurant stocks that look like buys and one that still looks like one to avoid. 

Finally, if you're looking for a twist on defensive stocks, you may want to consider International Paper Company (NYSE: IP). The stock was heavily sold in 2022. But strength in key defensive areas, such as the food and beverage industry as well as e-commerce, is likely to put more upside in IP stock.  

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