GM, Applied Materials Lead Five Stocks Near Buy Points In Rough 2022 Market

Marriott Worldwide (MAR), Lowe’s (LOW), Applied Materials (AMAT), Star Bulk Carriers (SBLK) and General Motors (GM) are five top stocks holding strong near potential buy points.

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The new year has started with the uptrend shifting to under pressure. It’s a sign that the current market rally is struggling and investors should be cautious while looking for opportunities in top-performing sectors.

The banking and energy sectors are currently hot, fueled by strong gains in Treasury yields and crude oil prices, respectively. But investors should also be looking for quality stocks in other sectors. One way to find outperforming stocks is to look at their IBD Composite Ratings. The Composite Rating compiles scores on five key fundamental and technical metrics: earnings growth, sales growth, profit margins, return on equity and relative price performance.

Star Bulk Carriers and Applied Materials have a Composite Rating of 97 while Lowe’s has a 94 rating. Marriott has a 90 Composite Rating and General Motors rounds out the list with an 81 rating.

These stocks also have peers that are doing relatively well, another positive sign.

AMAT Stock

Shares sank 3.5% to 150.81 in Friday’s stock market trading, losing 4.2% for the week. AMAT stock has slipped back below its 159.10 entry point after breaking out of a flat base in late December. Applied Materials is just below its 50-day and 200-day lines.

The world is facing a massive chip shortage that is affecting everything from the auto industry to the video gaming industry. But chipmakers are investing in new equipment to fill out factories and increase supply. That’s a bullish sign for Applied Materials which makes etching and cleaning equipment needed to produce semiconductors.

Other chip gear makers are doing well including KLA Corp. (KLAC) and Lam Research (LRCX), along with some chipmakers.

Star Bulk Carriers Stock

Shares dipped 0.2% on Friday to 22.70. Star Bulk Carriers stock is consolidating with a 24.71 buy point. SBLK stock could be working on a handle that would offer a slightly lower buy point.

The company is a dry bulk shipping operation, which uses its fleet to haul everything from grain to iron ore in segmented ships’ hulls.

Shipping is likely to stay a major focus on Wall Street in 2022 as supply chain issues persist and the coronavirus pandemic shifts historic shipping routes.

Star Bulk earnings skyrocketed in 2021 but are expected to be little changed in 2022, though still far above pre-pandemic levels. Another attractive feature of Star Bulk Carriers is its strong dividend yield of 13.1%.

Other strong shipping stocks include Zim Integrated Shipping (ZIM) and Matson (MATX).

Marriott Stock

Shares rose 0.9% on Friday and for the week to 166.66. MAR stock is consolidating just under its buy point of 171.68.

Hotels stocks have seen the travel industry’s strongest recovery in 2021 and are holding up despite the rise in omicron Covid-19 cases. But while demand for rooms is strong, U.S. hotels face major staffing shortages.

Still, Marriott’s earnings are expected to surge 1,539% for all of last year, and then jump 81% in 2022, approaching pre-pandemic profitability.

Hilton (HLT) is another top-performing hotel stock. It broke out of a cup-with-handle base in late December and is currently in buy range.

Travel booking stocks are also coming into 2022 hot. Expedia (EXPE) broke out of a cup-with-handle base in late December and is now trying to gain momentum to jump back into buy range.

GM Stock

Shares fell about 1% on Friday to 62.27. GM stock rose 6.2% for the week, though it closed well off weekly highs of 67.21. Shares briefly cleared a 65.28 buy point, which remains valid.

The automaker unveiled its new Chevrolet Silverado electric pickup truck in early January as it looks to take on the Ford (F) F-150 Lightning. Electric vehicles have swept the auto industry, with growing interest from drivers who want more electric truck options. GM also made several other big EV and self-driving announcements on Jan. 5, with the Cadillac Lyriq SUV due out this spring.

Ford stock has skyrocketed in recent weeks, while Toyota (TM) and Chrysler parent Stellantis (STLA) also jumped.

Tesla (TSLA) has led the way in pushing the bounds of electric vehicles and making them a coveted, upscale auto. Tesla broke out of a handle buy point on Monday, surging 13.5% on blowout earnings. But TSLA stock plunged to close the week modestly lower.

Lowe’s Stock

Shares fell 2.9% last week to 251.09. LOW stock has held near record highs despite a bumpy market. Investors can also look at competitor Home Depot (HD), which has a similar stock chart. Both stocks could have flat bases in another week as they pull back toward their 10-week lines.

Home improvement projects have boomed during the pandemic as many office workers continue to work from home for another year.

In December, Lowes authorized a $13 billion stock-buyback program, bringing its total repurchase authorization to about $20 billion. But the company offered weaker-than-expected sales guidance for 2022.

Follow Gillian Rich on Twitter for investing news and more.

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