Weekly Market Update: Stocks Edge Higher as Basic Materials Rise and Communication Services Fall

Stock Market Update for the Trading Week Ended June 12

• The Morningstar US Market Index ended the week flat, up 0.76%.
• The best-performing sectors were basic materials, up 2.91%, and consumer defensives, up 2.53%.
• The worst-performing sectors were communication services, down 0.68%, and energy, down 0.01%.
• Large-cap stocks gained 0.20%, mid-cap stocks rose 2.02%, and small-cap stocks rose 2.98%.
• Growth stocks gained 1.69%, blend stocks gained 1.07%, and value stocks rose 1.60%.
• The S&P 500 gained 0.65%, and the Nasdaq rose 0.70%.
• Of the 876 US-listed companies covered by Morningstar, 586, or 67%, were up, two were unchanged, and 288, or 33%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.48% from 4.55%.
• Yields on 2-year US Treasury notes fell to 4.09% from 4.17%.
• West Texas Intermediate crude prices fell 6.49% to $84.39 per barrel.
• Comex Gold prices fell 2.57% to $4,207.90.

Top Stock Gainers

KLA KLAC, Sandisk SNDK, Intel INTC, Applied Materials AMAT, and Lam Research LRCX were the top performers among US-listed stocks covered by Morningstar analysts.

• KLA topped the list, rising 31.90%, and it’s up 64.77% over the past three months. This wide-moat company with a 2-star rating has increased 177.48% over the past 12 months. The stock closed the week at $254.46, trading at a 1,508% premium to its fair value estimate of $1,500.00 per share.
• Sandisk was the second-best performer, with a weekly return of 27.08%. The 1-star stock has gained 187.06% over the last three months. Shares in this no-moat company are up 4576.88% over the past 12 months. Sandisk stock wrapped the week at $1,980.10, trading at an 88% premium to its fair value estimate of $1,000.00 per share.
• Intel ranked third for the week, with its stock rising 25.86%. The 3-star, no-moat stock has gained 143.77% over the last three months and 465.57% over the past 12. Intel stock closed at $124.54, trading at a 30% premium to its fair value estimate of $90.00 per share.
• The fourth-best-performing stock was wide-moat Applied, which gained 25.18%. The 3-star stock has gained 57.57% over the last three months and is up 220.94% over the past 12 months. Applied finished the week at $567.16, trading at an 18% premium to its fair value estimate of $470.00 per share.
• Lam stock climbed 20.93% in the latest week. This wide-moat company has seen a 65.63% increase over the last three months and a 299.70% rise over the past 12. The 2-star stock ended the week at $366.68 per share, trading at a 65% premium to its fair value estimate of $220.00.

Top Stock Losers

Array Digital Infrastructure AD, Adobe ADBE, PTC PTC, Tandem Diabetes Care TNDM, and Oracle ORCL did the worst among US-listed stocks covered by Morningstar analysts.

• Array was the worst-performing stock of the week, falling 19.21%. This 2-star, no-moat company has risen 5.95% over the past three months and 37.78% over the past 12. The stock ended the week at $40.76, trading at an 18% premium to its fair value estimate of $34.00 per share.
• Adobe took the second spot, with a 18.85% decline this week. The narrow-moat company, rated 4 stars, has fallen 20.06% over the past three months and is down 47.00% over the past 12. Closing at $204.03, the stock trades at a 42% discount to its fair value estimate of $380.00 per share.
• PTC came in third, experiencing a 17.02% drop this week. This 4-star, wide-moat company has fallen 25.60% over the past three months and is down 30.77% over the past 12. The stock finished the week at $113.67, trading at a 26% discount to its fair value estimate of $160.00 per share.
• Next up is Tandem Diabetes Care, which fell 14.08% this week. The no-moat company with a 3-star rating is down 28.70% over the past three months and 26.68% over the past 12. At $16.60, the stock trades at a 21% discount to its fair value estimate of $20.00 per share.
• Oracle rounds out the list with a 13.83% decline this week. This 3-star, narrow-moat company has risen 13.17% over the past three months and rose 5.51% over the past 12 months. The stock closed the week at $184.03, trading at an 11% discount to its fair value estimate of $220.00 per share.

Highlights of This Week’s Market and Investing Events

• Monday, June 15: May Capacity Utilization, May Industrial Production
• Tuesday, June 16: May New Residential Construction report
• Wednesday, June 17: June Federal Open Market Committee decision on economic projections, May Retail Sales, April Business Inventories
• Thursday, June 18: Initial Unemployment Insurance Claims report for the week ended June 13, June Federal Reserve Bank of Philadelphia Index, May Leading Indicators