Stocks fared well last week, even with a shortened trading week due to the holiday. Folks looking at investing this week will note the markets experienced midweek pullbacks as some sectors were sold off hard, like Industrials, which ended the week at -3.37%, and Consumer Discretionary followed suit. Dow Jones ended the week positive, while S&P 500 traded at current levels.
Index | Last | YTD | 1 Week |
S&P 500 | 4090.38 | 6.92 | -0.10 |
S&P 500 Energy | 654.14 | -2.71 | 3.03 |
S&P 500 Materials | 501.51 | 2.44 | -1.26 |
S&P 500 Industrials | 827.76 | -0.44 | -3.37 |
S&P 500 Consumer Discretionary | 1129.59 | 12.34 | -2.95 |
S&P 500 Consumer Staples | 787.45 | 1.07 | 0.91 |
S&P 500 Health Care | 1557.33 | -1.78 | 3.08 |
S&P 500 Financials | 531.81 | -6.66 | -0.65 |
S&P 500 Information Tech | 2608.75 | 20.10 | -1.15 |
S&P 500 Consumer Services | 196.00 | 22.99 | 2.34 |
S&P 500 Utilities | 354.72 | -1.05 | 3.11 |
S&P 500 Real Estate | 232.97 | 0.26 | -0.77 |
S&P Dividend Aristocrats | 755.74 | 0.84 | -0.77 |
Dow Jones Industrial Average | 32237.53 | -1.36 | 1.18 |
Market Moving News
The jobs market maintained its strong hiring momentum last March. The US economy added another 236,000 jobs based on the nonfarm payroll the previous month, taking the unemployment rate back to 3.5% from 3.6% last February. The result suggests that the Federal Reserve may continue to raise interest rates. Although wage gains have slowed, it remains too high to be consistent with the 2% inflation target. The report also showed that labor market tightness was drawing more people into the workforce, with 480,000 entrants last month.
“Powell’s Curve” is flashing a recession signal: The 18-month US Treasury yield curve, previously identified by Fed Chair Jerome Powell as the most reliable indicator of an upcoming recession, has consistently declined to new lows. According to the “near-term forward spread,” a bond market signal that compares the forward rate on Treasury bills 18 months from now with the current yield on a three-month Treasury bill, has plunged to new lows, which suggests an upcoming recession. The Fed has been aggressively increasing interest rates to combat inflation. Still, some analysts believe tighter monetary policy may hurt growth, leading to bets on rate cuts later in the year. Money market investors predict the Fed will cut rates by about 70 basis points by December.
Week Ahead
The market waits for inflation data to affirm bets on Fed fund easing. Investors’ eyes are closely watching the upcoming US inflation report to see if it will answer questions about the market’s projection of near-term interest rate trajectory. Investors’ bets have driven down bond yields and supported tech and growth stocks, leading to the S&P 500 gaining 6.9% in 2023. However, the Federal Reserve sees borrowing costs remaining around current levels through 2023, and most Fed policymakers expect no rate cuts until 2024. If this week’s inflation reading shows a strong rise in consumer prices, the Fed’s view of a more restrictive rate outlook may gain support, leading to pressure on asset prices.
Earning Season Starts this week – Earning season has started today and markets are on the lookout for Friday’s major releases from major banks JPMorgan Chase and Co, Citigroup Inc, and Wells Fargo & Co. Markets expect a jump in first-quarter profit boosted by gains in the lender’s interest income in the wake of the continuous increase in interest rate.
Top 10 Stocks For The Week
Strong Buy-rated companies with 100% buy ratings to watch during the earning season.
Alphatec Holdings (ATEC)
Earnings Release: 5/4/23
Alphatec Holdings, Inc. is a medical technology company focused on products that help treat spine disorders. The company designs, develops, manufactures, and markets products focused on the surgical treatment of these disorders. The Company’s principal product offering includes various spinal implant products and systems consisting of components, such as spine screws and rods, plates, spinal spacers, and various biologics offerings. Alphatec Holdings, Inc. is headquartered in Carlsbad, California.
Analyst Rating and Barchart Opinion
Analysts Rated ATEC as a “Strong Buy” based on 6 Strong Buys, 2 Moderate Buys, and 1 Hold. The mean target for ATEC is $18.33, and the high target of $22.50, an upside of (42.31%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. However, investors should note that snapshot shows a waning opinion rating.
Activision Blizzard (ATVI)
Earnings Release: 4/24/23
Activision Blizzard, Inc. is a publisher and interactive entertainment content and services developer. It distributes and develops content and services on personal computers, video game consoles, and mobile devices. It also operates e-sports leagues and offers digital advertising within some of its content. Its segments include:
- Activision Publishing, Inc. (Activision) – delivers content through both premium and free-to-play offerings which also includes the activities of the Call of Duty League. This professional e-sports league is available globally.
- Blizzard Entertainment, Inc. (Blizzard) – delivers content through premium and free-to-play offerings and online gaming service via “Blizzard Battle.net”. This facilitates the digital distribution of Blizzard content and selected Activision content.
- King Digital Entertainment (King), and Others – deliver content on the mobile platform. Its most well know product franchise is Candy Crush, a match-three franchise.
Analyst Rating and Barchart Opinion
Analysts Rated ATVI as a “Strong Buy” based on 13 Strong Buys, 1 Moderate Buy, and 3 Holds. The mean target for ATVI is $90.59, and the high target of $95.00, an upside of (14.99%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. Investors should note that snapshot shows an increase in the opinion rating that suggests a strong momentum on ATVI.
Axon Enterprises (AXON)
Earnings Release: 5/9/23
Axon Enterprise, Inc. develops, manufactures, and sells conducted electrical weapons for the law enforcement, military, federal, corrections, private security, and personal defense markets. Its operating segment consists of:
- TASER Weapons – TASER Weapons segment involves the sale of conducted electrical weapons, accessories, and other products and services.
- Axon segments – focus on devices, applications, wearables, cloud, and mobile products.
Axon Enterprise Inc., formerly known as TASER International Inc., is headquartered in Scottsdale, AZ.
Analyst Rating and Barchart Opinion
Analysts Rated AXON as a “Strong Buy” based on 7 Strong Buys, 2 Moderate Buys and 1 Hold. The mean target for AXON is $235.40, and the high target of $263.00, an upside of (19.70%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. AXON’s rating shows a consistent 100% buy, which suggests it is still in a strong up trend.
Bridgebio Pharma Inc. (BBIO)
Earnings Release: 05/04/23
BridgeBio Pharma Inc. is a company that focuses on discovering, developing, and innovating drugs for genetic diseases. The Company’s product platform comprises Mendelian, Oncology, and Gene therapy. Its product pipeline includes:
- BBP-265
- BBP-831
- BBP-631
- BBP-454
Currently, BBP-631 and BBP-454 are in the clinical stage. BridgeBio Pharma Inc. is based in CA, United States.
Analyst Rating and Barchart Opinion
Analysts Rated BBIO as a “Strong Buy” based on 8 Strong Buys and 1 Moderate Buy. The mean target for BBIO is $24.38, and the high target of $29.00, an upside of (85.88%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. BBIO’s rating shows a consistent 100% buy, which suggests it is still in a strong up trend.
Berling Brands Inc. (BRBR)
Earnings Release: 5/4/23
BellRing Brands, Inc. is a manufacturer and seller of nutritional products. The company offers protein shakes, powders and nutrition bars, other RTD beverages, and supplements. It offers products under the
- Premier Protein
- Dymatize
- PowerBar
- Joint Juice
- Supreme Protein
BellRing Brands, Inc. is based in St. Louis, Missouri.
Analyst Rating and Barchart Opinion
Analysts Rated BRBR as a “Strong Buy” based on 9 Strong Buys and 2 Moderate Buys. The mean target for BRBR is $36.08, and the high target of $42.00, an upside of (21.56%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. BRBR’s rating grew from 88% buy last month to 100% last week and is now in the top 1% of stocks based on its current technical strength.
Boston Scientific Corp (BSX)
Earnings Release: 4/26/23
Boston Scientific Corporation manufactures medical devices and products used in various interventional medical specialties globally. The company has adopted the organic as well as inorganic routes for success. Boston Scientific has 3 global reportable segments:
- Cardiovascular – which includes Interventional Cardiology and Peripheral Interventions
- Rhythm and Neuro – which includes Cardiac Rhythm Management, Electrophysiology and Neuromodulation.
- MedSurg – comprises 2 sub-segments, viz. Endoscopy, Urology, and Pelvic Health.
Boston Scientific markets a broad portfolio of internally-developed and self-manufactured drug-eluting stents, including the Promus Element, Promus PREMIER, and Promus Element Plus everolimus-eluting stents. Within its CRM segment, the company also deals with implantable devices that deliver electricity to treat cardiac abnormalities and monitor the heart.
Analyst and Barchart Rating
Analysts rated BSX as a “Strong Buy” based on 11 Strong Buys, 2 Moderate Buys, and 3 Holds. The mean target for BSX is $51.67, and the high target of $56.00, an upside of (11.82%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. BSX rating grew from 88% buy last month to 100% last week, showing an increasing trend and technical strength.
B2Gold Corp (BTG)
Earnings Release: 5/2/23
B2Gold Corp is a gold producer with three operational mines in its portfolio. It consists of 1 mean per country:
The company also has a portfolio of evaluation and exploration assets located in Burkina Faso, Colombia, Namibia, Finland, and Mali.
Analysts and Barchart Rating
Analysts rated BTG as a “Strong Buy” based on 9 Strong Buys, 2 Moderate Buys, and 1 Hold. The mean target for BTG is $5.38, and the high target of $7.71, an upside of (84.45%). Barchart’s Opinion Rating also provides a “100% Buy” based on multiple technical indicators. BTG’s rating grew from 40% Sell last month to 100% last week, indicating a reversal in its bearish trend.
Cadence Design System (CDNS)
Earnings Release: 4/24/23
Cadence Design Systems Inc. is a company that offers products and tools that help customers to design electronic products. Through its System Design Enablement (SDE) strategy, the company offers hardware, software, services, and reusable IC design blocks (IPs) to electronic systems and semiconductor customers.
Cadence enables engineers to develop different types of ICs through its core electronic design automation (EDA) software and services. Its design IPs are directly integrated into the ICs. System Connect tools and services are used to analyze, design, and verify PCBs. Furthermore, they aid in designing and analyzing systems and verifying system functionality through their System Integration solutions.
Analysts and Barchart Opinion Rating
Analysts rated CDNS as a “Strong Buy” based on 8 Strong Buys, 1 Moderate Buy, and 2 Holds. The mean target for CDNS is $210.83, and the high target of $235.00, an upside of (12.70%). Barchart’s Opinion Rating provides a “100% Buy” based on multiple technical indicators and has been consistently on a 100% buy since last month, indicating a strong uptrend.
Certara Inc (CERT)
Earnings release: 5/4/23
Certara, Inc. is a company that provides software and technology-enabled services for biosimulation. Its focus is on using biosimulation technology and services to improve drug discovery and development with the aim is to produce better medicines for patients. They create their biosimulation technology using the principles of chemistry, biology, and pharmacology, using mathematical algorithms to model how drugs and diseases behave in the body.
Their end-to-end platform is offered to clients, including biopharmaceutical companies, academic institutions, and regulatory agencies in over 60 countries. Additionally, they offer an AI-powered platform to integrate and analyze content across their entire enterprise data landscape to organizations.
Analysts and Barchart Opinion
Analysts rated CERT as a “Strong Buy” based on 6 Strong Buys and 2 Holds. The mean target for CERT is $22.29, and the high target of $26.00, an upside of (13%). Barchart’s Opinion Rating provides a “100% Buy” based on multiple technical indicators. It was rated an 88% Buy last month and continuously moved its rating higher to 100% Buy based on its previous trading close.
Chipotle Mexican Grill (CMG)
Earnings Release: 4/25/23
Chipotle Mexican Grill operates quick-casual and fresh Mexican food restaurant chains with its subsidiaries. Its offering is focused on a menu of:
- Burritos
- Tacos
- Burrito bowls (a burrito without the tortilla)
- Salads
Chipotle restaurants also feature hormone-free pork, free-range, natural chicken, and other meat products that are prepared and cooked through traditional methods and served in a unique atmosphere. Chipotle has classified its restaurants as in-lines (in a line of retail chains), end-caps (at the end of a line of retail chains), free-standing units, and others.
Analysts and Barchart Opinion
Analysts rated CMG as a “Strong Buy” based on 17 Strong Buys, 2 Moderate Buys, and 5 Holds. The mean target for CMG is $1,835.27, and the high target of $2084.00, an upside of (23.66%). Barchart’s Opinion Rating provides a “100% Buy” based on multiple technical indicators and was rated a 24% Buy last month and continuously moved higher and closed at 100% Buy last week.
Final Thoughts
With the earnings season around the corner, investors can look at analyst estimates and ratings as a starting point when looking at companies to invest in. These ratings give investors additional confidence in discerning which companies are good to focus on during this earnings season. However, investors should still conduct their due diligence to understand better the companies analysts endorse.