MarketBeat Week in Review – 12/9 - 12/13

Equities had their worst-performing week since October. Investors are digesting the latest readings on inflation, particularly the producer price index (PPI) which came in hotter than expected. With valuations as extended as they are, any news that adds a risk premium will be a reason to sell.

But is this the start of a deeper correction? Probably not. The Federal Reserve is still likely to cut interest rates by 25 basis points next week. However, resurging inflation will dampen expectations for future rate cuts, and investors have to price that into stocks. 

On the other hand, if the Federal Reserve maintains interest rates at a higher level, it’s because the economy and the consumer remain healthy. The end of the year is always a time for profit-taking, tax-loss harvesting, and other rebalancing strategies. However, the trend for the market is still likely to be higher in 2025. MarketBeat analysts are here to help you find opportunities for your portfolio. Here are some of our most popular articles for this week. 

Articles by Jea Yu

Could NVIDIA Corp. NVDA become a victim of its own success? As its customers look for alternatives to NVIDIA’s Blackwell chips, which have a healthy backlog, Jea Yu explained why Marvell Technology Inc. MRVL may be well-positioned to pick up market share. 

A company’s performance during the current earnings season may be a solid predictor of the sectors poised for growth in 2025. This week, Yu highlighted four stocks that beat analysts’ estimates by more than double and could be setting up for even larger gains.

Nimble traders frequently look for vigorous price action to find profitable trades. This week, Yu analyzed the recent “gap and crap” price action in two AI stocks and explained why this pattern may set up a buying opportunity.

Articles by Thomas Hughes

This week, Thomas Hughes explained the Neos S&P 500 High Income ETF SPYI. This two-year-old fund is attracting attention because it harnesses the power of options but may be misunderstood by investors. Hughes explained the fund’s methodology, what type of investor it attracts, and where it may fit into a portfolio.

NVIDIA investors likely noticed a dip in the stock this week. For those that didn’t catch the headline, the Chinese government announced a probe into NVIDIA’s acquisition of Mellanox in 2019. Hughes explained why the sell-the-news moment is likely an isolated event and what that means for the NVDA stock price.

Hughes also reminded investors this week that the only thing better than buying shares of a quality company is buying those shares after the company’s stock splits. That may be the case for investors in Casey’s General Stores Inc. CASY. After a gain of over 525% in the last decade, CASY stock is reaching a point where the company may consider a stock split to make shares more accessible to retail investors.

Articles by Sam Quirke

After hitting an all-time high earlier this year, shares of Uber Technologies Inc. UBER have fallen more than 25%. However, Sam Quirke explained why, after a bullish earnings call, analysts are lining up to catch a ride with UBER stock and why you may want to do the same.

With all the negative headlines surrounding The Boeing Co. BA, it may come as a surprise that airline stocks have been among the strongest momentum stocks in the second half of 2024. This week, Quirke explained why two airline stocks are likely to carry that momentum into 2025.

On the other hand, investors are well aware that cruise line stocks have been among the year’s best performers. However, they may not be aware of the strong performance of the cruise line that Quirke analyzed this week and explained why investors may still have time to get on board a stock that’s up more than 90% in 2024.

Articles by Chris Markoch

Consumer discretionary stocks have been a mixed bag in 2024 as hotly anticipated interest rate cuts came lighter than expected. However, with all signs pointing to a strong economy in 2025, Chris Markoch highlighted three beaten-down consumer discretionary stocks that may be ready for a comeback.

One of the most closely watched earnings reports this week came from C3.ai Inc. AI. The company is known for its customizable AI applications for enterprise-level companies. The company is not yet profitable, but for now, investors are willing to overlook that in favor of the company’s niche in the AI space, which is leading to a spike in revenue.

Investors will know the bull market is ready to go to another level when the housing sector improves. However, investors who have been involved in homebuilder stocks are likely to buy the dip in Toll Brothers Inc. TOL after the company posted a strong earnings report that shows demand for its luxury homes is on the rise.

Articles by Ryan Hasson

It’s always tricky getting involved with a stock after its initial public offering, but Ryan Hasson checked in on Nebius Group N.V. NBIS. The company just went public on the NASDAQ in October, but it’s been publicly trading internationally for over a decade. And with the backing of NVIDIA in its initial funding round, this may be one that investors will want to watch closely before the institutions get involved.

Speaking of technology stocks to watch, Hasson explained why an expected resurgence in chip stocks is likely to be a bullish catalyst for ASML Holding N.V. ASML. The stock has pulled back after light guidance, but the sell-off may be overdone, making this a good buy-the-dip opportunity.

Tesla stock continues its torrid rally. TSLA stock is up more than 57% for the year after a 72% spike in the most recent quarter. Hasson helped investors understand why analysts are becoming more bullish on the stock and why the price targets may be moving higher in 2025.

Articles by Gabriel Osorio-Mazilli

Whether you see social media as a friend or foe, there’s no denying it’s here to stay. And as Gabriel Osorio-Mazilli pointed out this week, it’s become an essential way for businesses to reach customers. That’s why you’ll want to look at Osorio-Mazilli's four social media stock picks that are likely to post strong gains in 2025.

While trading activity may slow down in the last few weeks of the year, investors are still planning their next moves. Osorio-Mazilli had an article this week to help get your due diligence off to a strong start by highlighting four stocks in three core sectors that are likely to post market-beating gains.

The need for power is likely to be a momentum trade for years to come. In 2024, investors are getting behind nuclear energy stocks as industry experts point out its importance as a truly clean energy option. This week, Osorio-Mazilli analyzed two nuclear stocks that are strong candidates to power the ongoing data center revolution.

Articles by Leo Miller

The expected rally in chip stocks has many investors eyeing chipmakers like NVIDIA and Advanced Micro Devices Inc. AMD. However, Leo Miller explained why, if you’re willing to look further up the supply chain, a name like Synopsys Inc. SNPS is one to watch. The company is the leading provider of software that’s critical to chip design, and investors can get SNPS stock at a substantial discount heading into the new year.

Miller also broke down the state of the cybersecurity sector and why it may be time for investors to look at smaller companies that were among the weaker performers in 2024. That would include SentinelOneInc. S which is down 17% in 2024 but continues to look like a solid buy after its December earnings report.

Earnings season brings the announcement of share buybacks. This is a strategy that companies use to return value to shareholders. This week, Miller wrote about four companies that recently announced share buyback programs with two additional dividends added.

Articles by Nathan Reiff

Quantum computing is a niche sector that may be about ready to go mainstream. That means that a significant portion of the investment dollars have been flowing to big tech companies. However, investors following the sector closely are eyeing the smaller Quantum Computing Inc. QUBT, an industry leader with strong revenue growth in 2024; Reiff explained why the company could face short-term headwinds.

Investors looking for stocks that could go from worst to first may want to look at small-cap stocks. That thesis had Nathan Reiff looking at three small-cap stocks that are positioned for strong growth in 2025, with two of the names being strong performers in 2024.

Momentum traders are always on the lookout for stocks that allow them to ride the hot hand. That could be the case with three undervalued stocks that Reiff noted have been growing quickly but have room to push higher.