Weekly Market Update: Stocks Flat as Healthcare Rises, Utilities Fall

Stock Market Update for the Trading Week Ended Sept. 18

• The Morningstar US Total Market Index fell 0.2%.
• The best-performing sectors were healthcare, up 1.56%, and technology, up 1.03%.
• The worst-performing sectors were utilities, down 2.95%, and financial services, down 2.29%.
• Large-cap stocks fell 0.04%, mid-cap stocks fell 1.35%, and small-cap stocks fell 1.38%.
• Growth stocks gained 0.7%, blend stocks fell 0.18%, and value stocks fell 1.28%.
• The S&P 500 fell 0.08%, and the Nasdaq rose 0.72%.
• Of the 874 US-listed companies covered by Morningstar, 225, or 26%, were up, one was unchanged, and 647, or 74%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 5.01% from 4.96%.
• Yields on 2-year US Treasury notes rose to 4.76% from 4.63%.
• West Texas Intermediate crude prices fell 0.50% to $99.49 per barrel.
• Comex Gold prices fell 1.22% to $4,325.30.

Top Stock Gainers

Zscaler ZS, Tenable TENB, Qualys QLYS, Illumina ILMN and Rapid7 RPD were the top performers among US-listed stocks covered by Morningstar analysts.

• Zscaler topped the list, rising 19.76% for the week and up 58.76% over the past three months. This narrow-moat company with a 4-star rating has decreased 29.34% over the past 12 months. The stock closed the week at $197.24, trading at a 21% discount to its fair value estimate of $250 per share.
• Tenable was the second-best performer, with a weekly return of 17.72%. The 2-star stock has gained 34.15% over the last three months. Shares in this no-moat company are up 20.97% over the past 12 months. Tenable stock wrapped up the week at $35.41, trading at a 57% premium to its fair value estimate of $23 per share.
• Qualys ranked third for the week, with its stock rising 16.4%. The 3-star, narrow-moat stock has gained 58.74% over the last three months and gained 34.69% over the past 12 months. Qualys stock closed at $174.82, trading near its fair value estimate of $170 per share.
• The fourth-best-performing stock was narrow-moat Illumina, which gained 16.02%. The 2-star stock has gained 54.11% over the last three months and is up 143.07% over the past 12 months. Illumina finished the week at $239.55, trading at a 49% premium to its fair value estimate of $165 per share.
• Rapid7 stock climbed 15.91% in the latest week. This no-moat company has seen an increase of 83.31% over the last three months but a decline of 36.36% over the past 12 months. The 3-star stock ended the week at $11.95 per share, trading at a 24% premium to its fair value estimate of $10.

Top Stock Losers

Ionis Pharmaceuticals IONS, AutoNation AN, Sonic Automotive SAH, Shake Shack SHAK and J.B. Hunt Transport Services JBHT did the worst among US-listed stocks covered by Morningstar analysts.

• Ionis Pharmaceuticals was the worst-performing stock of the week, falling 17.99%. This 5-star, narrow-moat company has fallen 37.09% over the past three months and fell 23.57% over the past 12 months. The stock ended the week at $44.44, trading at a 44% discount to its fair value estimate of $84 per share.
• AutoNation took the second spot, with a 17.35% price decline this week. The narrow-moat company, rated 4 stars, has fallen 6.16% over the past three months and fell 20.69% over the past 12 months. Closing at $168.25, the stock trades at a 27% discount to its fair value estimate of $238 per share.
• Sonic Automotive came in third, experiencing a 16.23% drop this week. This 4-star, narrow-moat company has fallen 15.06% over the past three months and fell 13.43% over the past 12 months. The stock finished the week at $63.55, trading at a 33% discount to its fair value estimate of $98 per share.
• Next up is Shake Shack, which saw its stock price fall by 13.73% this week. The no-moat company with a 2-star rating has fallen 4.97% over the past three months and fell 43.56% over the past 12 months. At $54.91, the stock trades at a 64% premium to its fair value estimate of $34 per share.
• J.B. Hunt Transport Services rounds out the list with a 13.44% decline this week. This 2-star, narrow-moat company has fallen 11.22% over the past three months but rose 77.36% over the past 12 months. The stock closed the week at $234.09, trading at a 30% premium to to its fair value estimate of $182 per share.

Highlights of This Week’s Market and Investing Events

• Wednesday, Sept. 23: September Purchasing Managers Index Composite
• Thursday, Sept. 24: Initial Unemployment Insurance Claims, August New Home Sales, Costco COST Earnings
• Friday, Sept. 25: August Durable Orders