1 Stock to Buy, 1 Stock to Sell This Week: Shopify, Occidental Petroleum
• CPI inflation, retail sales, producer prices, and more earnings will be in focus this week.
• Shopify stands out as a buy, particularly with the holiday season around the corner.
• Occidental Petroleum’s challenging landscape makes it one to approach with caution.
• Looking for more actionable trade ideas? Unlock access to InvestingPro for less than $8 a month!
U.S. stocks closed higher on Friday to cap off their best week of the year, as the Dow and S&P 500 surged to new records after Donald Trump’s decisive election victory.
Investors are betting that a Trump administration will bring lighter regulation and tax cuts that could boost the U.S. economy.
For the week, the blue-chip Dow Jones Industrial Average climbed 4.6%, the benchmark S&P 500 gained 4.7%, and the tech-heavy Nasdaq Composite popped 5.7%.
Source: Investing.com
The week ahead is expected to be an eventful one as investors assess the outlook for the economy, inflation, interest rates and corporate earnings.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for October, which is forecast to show headline annual CPI rising 2.4% year-over-year.
Other noteworthy economic reports include U.S. retail sales data, as well as a report on producer prices, will help fill out the inflation picture.
Source: Investing.com
That will be accompanied by a heavy slate of Fed speakers, including Chairman Jerome Powell on Thursday.
Elsewhere, the earnings season continues, with the list of notable names due to report including Walt Disney (NYSE:DIS), Home Depot (NYSE:HD), Cisco (NASDAQ:CSCO), Applied Materials (NASDAQ:AMAT), Shopify (NYSE:SHOP), Spotify (NYSE:SPOT), and Alibaba (NYSE:BABA).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, November 11 – Friday, November 15.
Shopify stands out as a top buy this week, as the e-commerce software leader is anticipated to deliver another quarter of strong top-line growth and provide an upbeat outlook thanks to robust growth across key metrics.
Shopify’s report is set for release Tuesday at 7:00 AM ET. Market participants expect a sizable swing in SHOP stock after the print drops, according to the options market, with a possible implied move of approximately 14% in either direction. Shares gapped up 26% after its last earnings report in August.
Source: InvestingPro
Analysts have raised profit forecasts 33 times in recent weeks, as per an InvestingPro survey, highlighting confidence in Shopify’s continued expansion.
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