The SP 500 surged for a fourth straight week, helping the broad U.S. stock market indexes rise by more than 1% on Friday.
As investors found comfort in the fact that the most recent inflation numbers were not as awful as feared, energy names led the way upward.
On Wednesday, it w
as revealed that core July consumer prices (CPI), excluding food and energy, rose 5.9% from a year earlier. This figure was lower than anticipated and the same as the prior month.
The following day, it was revealed that core producer prices (PPI) increased 7.6% in July, which was below expectations and a decrease from the prior month.
The Coming Week
This week's reporting schedule is dominated by retail companies, starting on Tuesday with Home Depot and Wal-Mart. Lowe's and Cisco Systems are expected to report on Wednesday, while Deere reports on Friday.
Throughout the week, we'll get a few glimpses into the state of the American home market on the economic front. Along with the minutes from the most recent FOMC meeting, the July retail sales report will be released on Wednesday.
Gains from investments may be more difficult to come by in 2022 due to the likelihood for slower GDP and the possibility of increased interest rates. Any investor may find it difficult to decide what and when to buy as a result.
But if you look a bit harder, you can still find stocks with upside potential and other encouraging signs.
Our Stock of the Week is one such Energy name worth paying closer attention to.
Matador Resources is the Week's Top Stock.
In the Delaware Basin, the company primarily focuses on oil and natural gas shale exploration and production.
Last week, the stock increased by 14%. It is shown potential to maintain this relative outperformance into the last quarter of 2022. This is why:
Matador's posting of better-than-anticipated quarterly earnings in July demonstrated how much operating momentum it is currently experiencing. In the second quarter, the business made $3.47 per share on revenue that increased by 164% from the same period last year to $943.9 million.
Positive growth in production over the period increased by 18% sequentially. Additionally, Matador eliminated more than $200 million in debt.
With only 5.7x the profit anticipated over the following four quarters, the stock appears to be undervalued in the interim. This is below both the general market and the anticipated yearly earnings growth rate of the company.
Wall Street concurs that Matador's present price is fairly valued. The shares are rated a Buy by each of the six analysts TipRanks follows. Their average price target, $81.17, has a 33.6% potential increase.
The business now has a "Outperform" smarts core score of 10/10 on TipRanks. This stock score based on data is based on 8 important market variables.
In addition to the advantages already discussed, the Smart Score shows that hedge funds and financial bloggers are now more bullish on equities.
FYI: The Smart Investor Portfolio, a weekly newsletter that combines big data and market insights, consists of over 20 stocks, and this is just 1 of them.
Adeleke Ajibola 1 y
relish the trip!