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A Second Week of Declines as September Continues

This story originally appeared on Zacks

Any hopes of a positive week were dashed on Friday, as the September slump continued and left each of the major indices with slight losses over the five days. And now the market waits to hear what the Fed has to say in their meeting next week.The S&P slipped 0.91% today to 4432.99, while the NASDAQ was off by the same percentage (or nearly 138 points) to 15,043.97. The Dow declined 0.48% (or around 166 points) to 34,584.88.The indices actually came into Friday’s session with gains through the first four days. We enjoyed a decent rally on Wednesday (which has been rare this month) followed by only slight losses on Thursday. Even a mediocre advance could have sent investors into the weekend feeling pretty good, all things considered.However, the above-mentioned performances left the S&P and NASDAQ in the red by 0.6% and 0.5%, respectively, for the week. The Dow was pretty much breakeven, though technically off by less than 0.1%.  That makes back-to-back weekly losses for the indices, but the declines were much narrower than last week when stocks were down by more than 1.5%.We saw a good amount of economic data in the past few days, which continued on Friday with the University of Michigan’s consumer sentiment index. The print came to 71, which was a bit better than August’s number but below expectations of 72.It was a similar idea to the CPI report on Tuesday and jobless claims yesterday. The results were slightly below forecasts but held up rather well, suggesting an economic recovery that’s staying on its feet though being impacted by the delta variant.Meanwhile, the retail sales data from Thursday was downright solid by climbing 0.7% in August, compared to the market’s expectation for a 0.8% slide.All of this stuff will be taken into account when the Fed meets next week. Investors will be watching for any announcements, or at least hints, on the central bank’s timeline for scaling back on its asset purchasing program. Has this recent data impacted their plans? We’ll find out on Wednesday.Today’s Portfolio Highlights:Technology Innovators: There’s a lot of open spots in this portfolio right now, so Brian added for a second consecutive session today. He picked up EchoStar (SATS) on Friday, a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband internet services for home and small office customers. The company has a great earnings history with an average surprise of 187% over the past four quarters, while rising earnings estimates pushed the stock to Zacks Rank #2 (Buy) status. Brian thinks the valuation is “amazing” and really appreciates the margins moving to a gain 2.1% from a loss of 2.2% over the past several quarters. Learn more in the complete commentary.Counterstrike: Streaming staple Roku (ROKU) beat the Zacks Consensus Estimate by 270% in its most recent report from August. You’d think that would mean good things for a Zacks Rank #1 (Strong Buy), but it has actually slipped almost 25% from that release. And its now down 35% from its all-time highs. That means it’s a good candidate for this portfolio. Jeremy thinks that ROKU likely bounces back to its 200-day at around $360 – $370, which would mean a 15% to 20% gain. The editor added the stock on Friday with a small 4% position, but plans to manage this trade and possibly add more if it comes down to long-term support around $250. “Don’t be surprised if this goes against us, the key will be managing this trade,” said Jeremy. Read the full write-up for more on this move.Value Investor: The portfolio got back into oil on Friday by adding Pioneer National Resources (PXD), as Tracey still thinks we’re entering into a multi-year bull market in energy. PXD is an industry leader in E&P and should be less volatile than smaller names. Plus, the company has one of the best balance sheets in the business. In fact, PXD’s free cash flow is so “tremendous” that it pays a variable dividend on top of its regular dividend. And, of course, it has all the good value characteristics. Meanwhile, Tracey has been patient with Fiserv (FISV), but she finally got rid of it today for a slight loss after pretty much running in place since being added in February. Read the full write-up for more on these moves.Healthcare Innovators: The top movers scoreboard was dominated by this portfolio on Friday with the top four names. Those winners were Twist Bioscience (TWST, +6.9%), Pacific Biosciences of California (PACB, +6.7%), Invitae (NVTA, +6.05%) and CRISPR Therapeutics (CRSP, +5.9%).Headline Trader: “I suspect that the Fed will hold off on its announcement to pare its $120 billion monthly asset purchases until there are clear signs that the impacts of the Delta-dent are behind us.”This tapering delay should catalyze another wave of risk-on capital into public equities, especially if the averages continue to slip into the meeting.”Either way, I expect to see the market moving action next Wednesday afternoon (FOMC statement at 2:00 pm EST & Jerome Powell’s post-meeting news conference at 2:30 pm).” — Dan LaboeHave a Great Weekend!Jim Giaquinto
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Peloton (PTON) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

In the latest trading session, Peloton (PTON) closed at $103.42, marking a -1.43% move from the previous day. This change lagged the S&P 500’s 0.91% loss on the day.

– Zacks

Heading into today, shares of the exercise bike and treadmill company had lost 2.67% over the past month, lagging the Consumer Discretionary sector’s gain of 0.91% and the S&P 500’s gain of 0.01% in that time.Wall Street will be looking for positivity from PTON as it approaches its next earnings report date. In that report, analysts expect PTON to post earnings of -$1.15 per share. This would mark a year-over-year decline of 675%. Our most recent consensus estimate is calling for quarterly revenue of $802.71 million, up 5.91% from the year-ago period.PTON’s full-year Zacks Consensus Estimates are calling for earnings of -$1.98 per share and revenue of $5.37 billion. These results would represent year-over-year changes of -209.38% and +33.6%, respectively.It is also important to note the recent changes to analyst estimates for PTON. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 450.4% lower within the past month. PTON currently has a Zacks Rank of #5 (Strong Sell).The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow PTON in the coming trading sessions, be sure to utilize Zacks.com.
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