Daily Stock Market Reports

Volatility High Ahead of Busy Economic Calendar

The broader U.S. market averages rebounded on Friday to end the session mixed. Earlier in the day, the S&P 500 was down more than 20% from its January highs, which is seen by some market watchers as the sign of a bear market.

The S&P 500 ended last week 3% lower, led by Consumer names like Target (TGT) and Wal-Mart (WMT) which disappointed investors with their quarterly results. On the other hand, the Energy and Healthcare sectors rallied.

In economic action, core April U.S. retail sales exceeded expectations on Tuesday, growing 0.6% excluding autos.

The Week Ahead

Nvidia (NVDA) kicks off the reporting calendar on Wednesday, followed by Costco (COST) and Medtronic (MDT) a day later.

On the economic front, the preliminary May U.S. purchasing managers’ index (PMI) data will be released on Tuesday. Wednesday brings durable goods orders, in addition to the minutes from the latest FOMC meeting.

Thursday offers a possible revision to first-quarter U.S. GDP growth, which initially printed a negative reading. The core PCE price index will be announced on Friday and is the key inflationary gauge of the Federal Reserve.

The Dow Jones Industrial Average is now riding an eight-week losing streak. The S&P 500 and Nasdaq Composite have also declined for seven straight weeks.

Given a slowing growth outlook and the prospect of higher interest rates, it could become hard to come by investment gains in 2022. As a result, deciding what and when to buy can be challenging for any investor. However, the fact remains that investments with upside potential and other positive signals are out there if you dig a little deeper.

One such Energy name is worth a closer look and is our Stock of the Week.

Stock of the Week: Matador Resources (MTDR)

The company explores and produces energy commodities, focusing on oil and natural gas shale in the Delaware Basin.

The stock gained 4% last week. It is showing signs that it has the potential to continue this relative outperformance into the second half of 2022. Here’s why:

Matador is carrying a lot of operating momentum, as was evident when it posted a better-than-expected quarterly profit in April.

The company earned $2.32 a share in the first quarter, which beat expectations. Revenue also increased 112% from the previous year. Matador is leveraged to rising commodity prices and offers a potential natural inflation hedge.

In the meantime, the stock appears inexpensive at just 4.5x profit expected over the next four quarters. This is a discount to both the broader market and the company’s expected annual earnings growth rate.

Wall Street agrees that the stock is attractively valued at current levels. All eight active analysts tracked by TipRanks rate Matador a Buy and the average price target of $76.13 represents 51.1% upside potential.

In the meantime, the company carries an “Outperform” Smart Score of 10/10 on TipRanks. This data-driven stock score is based on 8 key market factors.

On top of the positive aspects mentioned already, the Smart Score indicates that shares have seen insider buying, in addition to improving sentiment from hedge funds and financial bloggers.

FYI: This is just 1 of the 20+ stocks selected for the Smart Investor portfolio, a weekly newsletter that blends big data, and market insights.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >

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