Morningstar

Weekly Market Update: Stocks Gain 1.03% as Communication Services Rise and Consumer Defensives Fall

RingCentral was the top-performing stock this week, while Cogent did the worst.

Collage illustration for Communications Sector with a satellite.
Securities in This Article
The Home Depot Inc
(HD)
Tandem Diabetes Care Inc
(TNDM)
Zscaler Inc
(ZS)
Moderna Inc
(MRNA)
Genuine Parts Co
(GPC)

Stock Market Update for the Trading Week Ended Feb. 20

  • The Morningstar US Market Index rose 1.03%.
  • The best-performing sectors were communication services, up 1.91%, and industrials, up 1.62%.
  • The worst-performing sectors were consumer defensives, down 2.19%, and utilities, down 0.55%.
  • Large-cap stocks gained 1.17%, mid-cap stocks rose 0.70%, and small-cap stocks rose 0.72%.
  • Growth stocks gained 1.29%, blend stocks gained 0.84%, and value stocks rose 0.19%.
  • The S&P 500 gained 1.07% and the Nasdaq rose 1.51%.
  • Of the 834 US-listed companies covered by Morningstar, 492, or 59%, were up, none were unchanged, and 342, or 41%, were down.

Bonds and Commodities

  • Yields on 10-year US Treasury notes rose to 4.08% from 4.04%.
  • Yields on 2-year US Treasury notes rose to 3.48% from 3.40%.
  • West Texas Intermediate crude prices rose 5.57% to $66.31 per barrel.
  • Comex Gold prices rose 1.38% to $5,098.60.

Top Stock Gainers

RingCentral RNG, Tandem Diabetes Care TNDM, Omnicom Group OMC, Global Payments GPN, and Moderna MRNA were the top performers among US-listed stocks covered by Morningstar analysts.

  • RingCentral topped the list, rising 30.84%, and it’s up 11.12% over the past three months. This no-moat company with a 4-star rating has decreased 7.40% over the past 12 months. The stock closed the week at $39.50, trading at a 27% discount to its fair value estimate of $40.00 per share.
  • Tandem Diabetes was the second-best performer, with a weekly return of 29.59%. The 3-star stock has lost 1.17% over the last three months. Shares in this no-moat company are down 41.61% over the past 12 months. Tandem Diabetes stock wrapped up the week at $24.57, trading at a 7% discount to its fair value estimate of $20.00 per share.
  • Omnicom ranked third for the week, with its stock rising 20.67%. The 4-star, narrow-moat stock has gained 13.53% over the last three months and 0.19% over the past 12. Omnicom stock closed at $83.26, trading at a 30% discount to its fair value estimate of $115.00 per share.
  • The fourth-best-performing stock was narrow-moat Global Payments, which gained 20.43%. The 5-star stock has gained 11.76% over the last three months but is down 23.75% over the past 12 months. Global Payments finished the week at $82.47, trading at a 39% discount to its fair value estimate of $131 per share.
  • Moderna stock climbed 18.09% this week. This no-moat company has seen an increase of 105.54% over the last three months and a rise of 38.44% over the past 12 months. The 4-star stock ended the week at $49.87 per share, trading at a 21% discount to its fair value estimate of $63.00.

Top Stock Losers

Cogent Communications CCOI, Klarna Group KLAR, Genuine Parts GPC, EPAM Systems EPAM, and Akamai Technologies AKAM did the worst among US-listed stocks covered by Morningstar analysts.

  • Cogent was the worst-performing stock of the week, falling 29.79%. This 4-star, narrow-moat company has risen 55.06% over the past three months but fell 64.81% over the past 12 months. The stock ended the week at $18.59, trading at a 39% discount to its fair value estimate of $43.00 per share.
  • Klarna took the second spot, with a 27.77% price decline this week. The narrow-moat company, rated 5 stars, has fallen 54.49% over the past three months. Closing at $13.08, the stock trades at a 69% discount to its fair value estimate of $45.00 per share.
  • Genuine Parts came in third, experiencing a 19.77% drop this week. This 3-star, narrow-moat company has fallen 3.99% over the past three months but has risen 1.16% over the past 12. The stock finished the week at $118.06, trading at a 10% discount to its fair value estimate of $132.00 per share.
  • Next up is EPAM, which saw its stock price fall by 16.54% this week. The narrow-moat company with a 4-star rating has fallen 23.09% over the past three months and is down 46.09% over the past 12 months. At $138.85, the stock trades at a 22% discount to its fair value estimate of $178.00 per share.
  • Akamai rounds out the list with a 15.63% decline this week. This 4-star, narrow-moat company has risen 26.66% over the past three months and rose 9.31% over the past 12 months. The stock closed the week at $94.27, trading at a 16% discount to to its fair value estimate of $130.00 per share.

Highlights of This Week’s Market and Investing Events

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