Stock Market Week in Review – 12/16 – 12/20

Stocks were mostly lower this week after the Federal Reserve confirmed that it was planning fewer rate cuts in 2025. The market had priced in a slower pace of rate cuts, but the confirmation that the number of cuts would be less than expected gave investors a reason to take profits in an extended market.

Investors got some good news to end the week when the Personal Consumption Expenditure (PCE) index reading came in slightly cooler than expected. However, the report did nothing to contradict the Fed’s decision. 

With most of the economic data in, investors will continue to look for direction in a holiday-shortened week. Markets will close at 1:00 p.m. EST on Christmas Eve and will be closed on Christmas Day. The MarketBeat team of analysts will still be keeping an eye out for signs of a Santa Claus rally and will be ready to point you to any opportunities that exist.

Jea Yu covered semiconductor stocks from two distinct angles. Yu introduced some investors to Semtech Corp. NASDAQ: SMTC, which manufactures analog and mixed-signal chips that are in growing demand from artificial intelligence (AI) applications. That moved the stock back into growth mode after bottoming out early this year, and Yu explained why there could be more upside ahead.

Yu also wrote about the potential impact of the incoming Trump administration’s proposed tariffs on the chip sector and, specifically, two chipmakers with extensive exposure to Taiwan and China.

Articles by Thomas Hughes

Hughes also highlighted another buy-the-dip candidate. Cintas Corp. NASDAQ: CTAS has rarely given investors a buying opportunity in the last decade. After earnings that were good but not great, Hughes explained the technical and fundamental case that supports owning the stock at these levels.

But instead of buying the dip, what about stocks that are having a good year, but analysts believe there’s even more growth ahead? Hughes gave investors three of the most upgraded stocks in 2024 and explained why each may have more room to run.

If you’ve owned Salesforce Inc. NYSE: CRM for the entire year, you’re celebrating a nice return on that investment. Sam Quirke checked in on the CRM software giant and found that if you missed buying it in 2024, you still have a chance for about a 20% gain and maybe more.

Articles by Chris Markoch

The end of the year is a time for investors to rebalance their portfolios. And for those looking for growth stocks under $100, Markoch provided three names for investors to consider.

Utilities stocks are normally known to be where investors flee for safety. As Ryan Hasson pointed out, that hasn’t been the case in December, as one of the leading ETFs in the sector has dropped about 7%. However, investors may want to use that drop as an opportunity to get exposure to one of the nuclear stocks that Hasson highlighted.

Articles by Gabriel Osorio-Mazilli

The price of oil has been a massive headwind for oil stocks in 2024. But Gabriel Osorio-Mazilli explained why the flight to value stocks is likely to make 2025 the ultimate time to invest in oil stocks.

At a time when many stocks are considered to be overvalued, it’s interesting that many companies continue to issue share buybacks. Osorio-Mazilli reminded investors that buybacks are a strategy a company enacts when it believes its stock is undervalued. And right now, three companies are announcing aggressive buyback plans.

Artificial intelligence will continue to be a major investment theme in 2025. But it may be time to look at small-cap stocks. This week, Leo Miller analyzed three small-cap AI stocks projected to have strong revenue growth that could lift their stock prices.

Data centers will continue to be a focus in 2025, but Miller reminded investors not to forget about natural gas stocks when considering how to invest in this sector. Miller highlighted three companies that are in a leadership position in powering data centers with natural gas.

New competition in the weight loss market has stripped Novo Nordisk A/S NYSE: NVO of most of the meteoric gains it made in 2023 and 2024. Miller explained why the company has several catalysts that may make NVO stock a buying opportunity in 2025.

Changes in tax policy, along with a more favorable regulatory environment, are expected to be bullish for industrial stocks in 2025. This week, Nathan Reiff gave long-term investors three industrial stocks that may offer attractive entry points.

Aerospace and defense stocks are also expected to get a boost in 2025. This week, Reiff highlighted three under-the-radar stocks that could be ready to deliver strong gains for investors.

Finally, AI is red-hot, but if you’re looking for the next big thing, it may come from quantum computing. The sector appears to be at, or near, its ChatGPT moment, and Reiff highlighted two quantum computing stocks that risk-tolerant investors may want to buy in 2025.