Weekly Market Update: Stocks Edge Lower as Consumer Defensives Rise and Financial Services Fall

Stock Market Update for the Trading Week Ended Feb. 27

• The Morningstar US Market Index fell 0.48%.
• The best-performing sectors were consumer defensives, up 2.69%, and utilities, up 2.67%.
• The worst-performing sectors were financial services, down 2.24%, and technology, down 2.03%.
• Large-cap stocks fell 0.70%, mid-cap stocks rose 0.36%, and small-cap stocks fell 0.92%.
• Growth stocks fell 0.88%, blend stocks fell 0.21%, and value stocks fell 0.16%.
• The S&P 500 fell 0.44% and the Nasdaq fell 0.95%.
• Of the 834 US-listed companies covered by Morningstar, 424, or 51%, were up, one was unchanged, and 409, or 49%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 3.97% from 4.08%.
• Yields on two-year US Treasury notes fell to 3.38% from 3.48%.
• West Texas Intermediate crude prices rose 1.40% to $67.24 per barrel.
• Comex Gold prices rose 2.90% to $5,259.60.

Top Stock Gainers

Clarivate CLVT, Paramount Skydance PSKY, Keysight Technologies KEYS, Netflix NFLX, and Dell Technologies DELL were the top performers among US-listed stocks covered by Morningstar analysts.

• Clarivate topped the list, rising 29.94%, but it’s down 36.00% over the past three months. This no-moat company with a 5-star rating has decreased 47.25% over the past 12 months. The stock closed the week at $2.30, trading at a 56% discount to its fair value estimate of $5.50 per share.
• Paramount was the second-best performer, with a weekly return of 26.33%. The 4-star stock has lost 28.88% over the last three months. Shares in this no-moat company are up 1.43% over the past 12 months. Paramount stock wrapped up the week at $13.53, trading at a 44% discount to its fair value estimate of $20.00 per share.
• Keysight ranked third for the week, with its stock rising 26.19%. The 1-star, wide-moat stock has gained 55.99% over the last three months and gained 90.84% over the past 12 months. Keysight stock closed at $307.33, trading at a 39% premium to its fair value estimate of $220 per share.
• The fourth-best-performing stock was narrow-moat Netflix, which gained 22.44%. The 3-star stock has fallen 20.30% over the last three months and is down 14.56% over the past 12 months. Netflix finished the week at $96.32, trading at a 7% premium to its fair value estimate of $79.00 per share.
• Dell stock climbed 21.11% in the latest week. This no-moat company has seen a decrease of 8.47% over the last three months but a rise of 6.83% over the past 12 months. The 4-star stock ended the week at $148.08 per share, trading at a 19% discount to its fair value estimate of $150.00.

Top Stock Losers

Shoals Technologies SHLS, Sunrun RUN, Novo Nordisk NVO, Restoration Hardware RH, and First Solar FSLR did the worst among US-listed stocks covered by Morningstar analysts.

• Shoals was the worst-performing stock of the week, falling 44.11%. This 3-star, no-moat company has fallen 22.36% over the past three months but rose 63.70% over the past 12 months. The stock ended the week at $5.93, trading near its fair value estimate of $6.50 per share.
• Sunrun took the second spot, with a 34.65% decline this week. The no-moat company, rated 2 stars, has risen 6.19% over the past three months and rose 143.38% over the past 12 months. Closing at $13.25, the stock trades at a 46% premium to its fair value estimate of $14.00 per share.
• Novo came in third, experiencing a 21.02% drop this week. This 4-star, wide-moat company has fallen 22.77% over the past three months and is down 56.06% over the past 12. The stock finished the week at $37.45, trading at a 30% discount to its fair value estimate of $54.00 per share.
• Next up is Restoration Hardware, which saw its price fall by 20.23% this week. The no-moat company with a 4-star rating has risen 17.04% over the past three months but fell 47.25% over the past 12 months. At $165.71, the stock trades at a 37% discount to its fair value estimate of $295.00 per share.
• First Solar rounds out the list with a 18.48% decline this week. This 3-star, no-moat company has fallen 26.49% over the past three months but is up 27.58% over the past 12. The stock closed the week at $197.17, trading near to its fair value estimate of $205.00 per share.

Highlights of This Week’s Market and Investing Events

• Monday, March 2: February ISM Manufacturing
• Tuesday, March 3: February ADP Employment Survey, February ISM Services PMI, Federal Reserve Beige Book
• Wednesday, March 4: Earnings from Broadcom AVGO
• Thursday, March 5: Initial Unemployment Insurance Claims, earnings from Costco COST
• Friday, March 6: February Employment Situation Report, January Consumer Credit, December Business Inventories, January Retail Sales