Weekly Market Update: Stocks Flat as Energy Rises and Consumer Cyclical Falls

Stock Market Update for the Trading Week Ended May 15

• The Morningstar US Market Index was flat.
• The best-performing sectors were energy, up 6.05%, and consumer defensive, up 1.18%.
• The worst-performing sectors were consumer cyclical, down 3.29%, and real estate, down 2.89%.
• Large-cap stocks gained 0.41%, mid-cap stocks fell 0.95%, and small-cap stocks fell 2.5%.
• Growth stocks fell 0.6%, blend stocks fell 1.74%, and value stocks rose 0.24%.
• The S&P 500 gained 0.13%, and the Nasdaq fell 0.08%.
• Of the 876 US-listed companies covered by Morningstar, 270, or 31%, were up, four were unchanged, and 602, or 69%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.59% from 4.38%.
• Yields on 2-year US Treasury notes rose to 4.09% from 3.90%.
• West Texas Intermediate crude prices rose 11.85% to $105.90 per barrel.
• Comex Gold prices fell 4.24% to $4,524.30.

Top Stock Gainers

SolarEdge Technologies SEDG, Enphase Energy ENPH, Venture Global LNG VG, Nebius Group NV Shs Class-A- NBIS, and Cisco CSCO were the top performers among US-listed stocks covered by Morningstar analysts.

• SolarEdge Technologies topped the list, rising 49.58%, and it’s up 41.40% over the past three months. This no-moat company with a 3-star rating has increased 180.20% over the past 12 months. The stock closed the week at $61.76, trading at a 39% premium to its fair value estimate of $36 per share.
• Enphase Energy was the second-best performer, with a weekly return of 45.1%. The 3-star stock has gained 10.39% over the last three months. Shares in this no-moat company are down 0.54% over the past 12 months. Enphase Energy stock wrapped up the week at $52.89, trading at a 26% premium to its fair value estimate of $38 per share.
• Venture Global LNG ranked third for the week, with its stock rising 24.28%. The 3-star, no-moat stock has gained 39.19% over the last three months and gained 28.73% over the past 12 months. Venture Global LNG stock closed at $14.23, trading at a 7% discount to its fair value estimate of $14 per share.
• The fourth-best-performing stock was no-moat Nebius Group NV Shs Class-A-, which gained 24.31%. The 1-star stock has gained 125.64% over the last three months and is up 512.26% over the past 12 months. Nebius Group NV Shs Class-A- finished the week at $219.94, trading at an 84% premium to its fair value estimate of $120 per share.
• Cisco stock climbed 22.41% in the latest week. This wide-moat company has seen an increase of 50.88% over the last three months and a rise of 91.19% over the past 12 months. The 2-star stock ended the week at $118.21 per share, trading at a 28% premium to its fair value estimate of $75.

Top Stock Losers

Wix WIX, Optimum Communications OPTU, Sabre SABR, Birkenstock BIRK, and Under Armour UAA did the worst among US-listed stocks covered by Morningstar analysts.

• Wix was the worst-performing stock of the week, falling 31.74%. This 4-star, no-moat company has fallen 23.86% over the past three months and fell 72.20% over the past 12 months. The stock ended the week at $54.74, trading at a 36% discount to its fair value estimate of $82 per share.
• Optimum Communications took the second spot, with a 28.82% price decline this week. The no-moat company, rated 3 stars, has fallen 47.34% over the past three months and fell 68.59% over the past 12 months. Closing at $0.81, the stock trades at a 12% discount to its fair value estimate of $1 per share.
• Sabre came in third, experiencing a 22.2% drop this week. This 3-star, no-moat company has risen 66.23% over the past three months but fell 47.16% over the past 12 months. The stock finished the week at $1.59, trading at a 25% discount to its fair value estimate of $2.10 per share.
• Next up is Birkenstock, which saw its stock price fall by 20.72% this week. The narrow-moat company with a 4-star rating has fallen 14.25% over the past three months and fell 37.36% over the past 12 months. At $31.15, the stock trades at a 21% discount to its fair value estimate of $43 per share.
• Under Armour rounds out the list with a 20.37% decline this week. This 5-star, no-moat company has fallen 29.07% over the past three months and fell 18.66% over the past 12 months. The stock closed the week at $5.12, trading at a 62% discount to its fair value estimate of $13.60 per share.

Highlights of This Week’s Market and Investing Events

• Monday, May 18: Earnings from Baidu BIDU
• Tuesday, May 19: Earnings from The Home Depot HD
• Wednesday, May 20: Minutes from the March Federal Open Market Committee Meeting, earnings from Target TGT, Lowe’s LOW, Nvidia NVDA
• Thursday, May 21: April New Residential Construction report, Initial Unemployment Insurance Claims report for the week ended May 16, May Federal Reserve Bank of Philadelphia Index, May Purchasing Managers Index Composite, earnings from Nio NIO, Walmart WMT
• Friday, May 22: April Leading Indicators (month to month)