Today’s episode of Full Court Finance at Zacks breaks down the mid-February market. The discussion then turns to two strong retail and e-commerce stocks – Shopify (SHOP) and Walmart (WMT) – to consider buying ahead of their upcoming quarterly financial releases due out the week of the 14th. February.
Stocks have fallen since January CPI data was released last Thursday morning to erase much of their recent rally. The S&P 500 is up just 1.5% from its late January lows and is back below its 200-day moving average. Wall Street sold stocks after US inflation officially climbed from 7% in December to 7.5% in January.
Inflation remained at its highest level in 40 years last month. Fortunately, the Fed should soon intervene. St. Louis Fed President James Bullard said Monday morning on CNBC that he believes the central bank needs to “preload more of our planned housing removal than we previously would have… Our credibility is at stake here and we have to react to the data.
Wall Street has clearly predicted a good number of hikes in 2022, and the first official hike will hopefully bring more clarity. The 10-year US Treasury is already above 2% for the first time since 2019. And it’s also worth noting that Bullard said the Fed can do what’s needed in an “organized, non-market-disruptive way.” “.
A ton of selling has already taken place in 2022 and at the end of last year it helped drive stock prices and valuations out of control. There could of course be more sales and 2022 could be a tough year after three consecutive periods of impressive returns.
Nevertheless, the uncertainty should not discourage investors with long-term horizons. Shopify STORE is expected to release its fourth quarter fiscal 2021 financial results before market open on Wednesday, February 16.
Shopify was a growth superstar on Wall Street for years before covid-19, as businesses turned to SHOP for all things e-commerce. SHOP provides what it calls “essential Internet infrastructure for commerce,” including everything from site design and marketing to payments and shipping. Shopify shares are trading 50% below their November highs after Wall Street began shedding all things growth.
The other strong retail and e-commerce stock we looked at today was Walmart Inc.WMT, with WMT set to report its fourth-quarter fiscal 2022 results before market open on Thursday. The pandemic helped Walmart post an explosive year in 2020, and its growth outlook for fiscal years 22 and 23 has improved. Walmart is more diverse than ever and its stock is currently trading around where it was in the summer of 2020.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 buy and hold tickers for all of 2022?
Last year 2021 Zacks Top 10 Stocks the portfolio generated gains as high as +147.7%. Now, a brand new portfolio has been selected from over 4,000 companies covered by the Zacks ranking. Don’t miss your chance to participate in this long term shopping
Access the Top 10 Zacks Stocks for 2022 today >>
Click to get this free report
Walmart Inc. (WMT): Free Inventory Analysis Report
Shopify Inc. (SHOP): Free Inventory Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.