Return from Holiday with a Rebound

The broader U.S. stock market averages rallied sharply on Friday and snapped a three-week losing streak. Following a holiday Monday, the S&P 500 gained about 3.6% last week, led by Materials and Consumer Discretionary names.

In economic news, the Institute for Supply Management (ISM) said on Tuesday that U.S. services activity increased in August.

The Week Ahead

Looking forward, Adobe (ADBE) and Oracle (ORCL) headline a relatively quiet earnings calendar.

The focus of the economic reports will shift back toward inflation next week, beginning with U.S. August consumer prices (CPI) on Tuesday. Producer prices (PPI) will be announced on Thursday, followed by retail sales the following day.

Given a slowing growth outlook and the prospect of higher interest rates, it could become hard to come by investment gains in 2022. As a result, deciding what and when to buy can be challenging for any investor.

However, the fact remains that investments with upside potential and other positive signals are out there if you dig a little deeper.

One such Healthcare name worth a closer look is our Stock of the Week.

Stock of the Week: Progyny (PGNY)

The company provides fertility services, for those looking to expand their families.

The stock gained nearly 15% last week. It is showing signs that it could continue this outperformance into the final months of 2022. Here’s why:

Progyny is carrying a lot of operating momentum into the second half of the year. This is evidenced by the better-than-expected quarterly results that management posted in August.

The company earned $0.09 a share in the second quarter, as revenue increased 51% from the previous year to $195 million.

Progyny also expanded margins in the period. In addition, management presides over a pristine balance sheet with $122 million of cash and equivalents.

Wall Street sees value in the stock and Truist Financial initiated coverage on Wednesday, with a Buy rating.

In fact, all six active analysts tracked by TipRanks rate the company a Buy. The average price target of $58.17 reflects 35% upside potential.

In the meantime, the company carries an “Outperform” Smart Score of 10/10 on TipRanks. This data-driven stock score is based on 8 key market factors.

On top of the positive aspects mentioned already, the Smart Score indicates that shares have seen improving sentiment from hedge funds and financial bloggers.

FYI: This is just 1 of the 20+ stocks selected for the Smart Investor portfolio, a weekly newsletter that blends big data, and market insights.

Read More: Return from Holiday with a Rebound

2022-09-11 00:01:04

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