As the market continues to experience volatility, investors are feeling increasingly bearish about the outlook for stocks. However, this could be a sign that it’s time to buy.
Despite concerns about inflation and potential interest rate hikes, there are still growth opportunities. Therefore, Finbold highlights three stocks to watch for the upcoming week of February 27. Investors can make informed decisions and capitalize on potential gains by analyzing the market trends and underlying factors driving these stocks.
Nvidia (NASDAQ: NVDA)
Despite the overall market downturn, Nvidia (NASDAQ: NVDA), the semiconductor giant, has witnessed its stock grow by over 50% in 2023 alone. Interest in NVDA has surged mainly due to several factors. For instance, the growing field of artificial intelligence (AI) has caught the attention of investors, leading to a surge in Nvidia’s stock price as the company is positioned to supply chips for use cases such as chatbots.
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Nvidia’s potential in the AI sector was first recognized after the successful launch of the ChatGPT AI-powered chatbot system in late 2022. While revenue from Nvidia’s AI segment increased in the fourth quarter, executives remained optimistic about the potential for the product.
At the same time, the company’s gaming division also saw a notable recovery, with sales increasing by 16% sequentially following two consecutive quarters of decline. In general, Nvidia stock has also benefited after the company reported higher-than-expected fourth-quarter revenue, earnings, and net income.
Moving into the new week, NVDA stock will be worth watching, considering macroeconomic factors have outweighed the market. By the close of markets on Friday, NVDA was trading at $232.86.
At the same time, NVDA technical analysis remains bullish, with a summary of the one-day gauges on TradingView going for ‘buy’ at 14. Moving averages are for a ‘strong buy’ at 14.
HSBC Holdings plc (NYSE: HSBC)
The banking giant has benefited from the spike in global interest rates, with its fourth-quarter pre-tax profit hitting $5.2 billion, beating estimates. Notably, while high inflation and rising interest rates have put pressure on consumers and corporations, it has benefitted lenders like HSBC (NYSE: HSBC).
As borrowers seek out loans to manage the impact of inflation and higher interest rates, banks like HSBC stand to benefit from increased demand for their lending services.
Notably, with HSBC earnings likely to influence its share prices, it is worth mentioning that the gains have come at a time the lender is undergoing a broad restructuring in which it has retrenched from markets in North America and parts of Europe while investing in Asia and the Middle East.
At the same time, HSBC’s share price has trailed behind its peers for several years. Despite the bank’s restructuring efforts, it has faced pressure from top shareholder Ping An Insurance since early 2022. Ping An has pushed for even more drastic measures to reduce costs, increase revenue, and prioritize the bank’s focus on the Asian market.
Similarly, HSBC’s heavy exposure to Hong Kong and China can be an area of concern, especially with escalating tensions between U.S. and China.
At the moment, HSBC’s stock is valued at $38.2.
Under technical analysis, the HSBC summary of the gauges recommends ‘buy’ at 13, while moving averages are for ‘strong buy’ at 13. Oscillators are for ‘sell’ at 3.
Amazon (NASDAQ: AMZN)
Since the start of February 2022, Amazon’s (NASDAQ: AMZN) stock has been on a gradual decline, with the company facing uncertainty, especially after the e-commerce giant initiated a sudden return to work-policy. Notably, Amazon is adjusting its capacity to align with post-pandemic growth reality, which is unlikely to reach COVID-19 levels.
Despite the uncertainty, Amazon is plagued with bullish sentiments like its rebounding growth. Furthermore, Amazon is witnessing increased attention to new products. For instance, as Amazon continues to dominate e-commerce, the company has acquired Whole Foods and initiated Amazon Go.
For the long term, most of AMZN’s businesses are projected to undergo significant sales growth due to the company’s advancement in existing markets and expansion into new regions.
In the short term, Amazon stock for the coming week is worth watching, considering how it will react following the return to office order that has been met with employee resentment. At the moment, AMZN stock is valued at $93.50.
For technical analysis, Amazon stock is mainly bearish. Both the summary and moving averages are for a ‘strong sell’ at 16 and 14.
In conclusion, the highlighted stocks have the potential to influence their respective sectors despite the prevailing uncertainty.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
