Weekly Market Update: Stocks End Week Flat as Consumer Defensives Rise and Consumer Cyclicals Fall

Stock Market Update for the Trading Week Ended Feb. 6

• The Morningstar US Market Index edged up 0.04%.
• The best-performing sectors were consumer defensive, up 5.83%, and industrials, up 5.61%.
• The worst-performing sectors were consumer cyclicals, down 3.77%, and communication services, down 3.7%.
• Large-cap stocks fell 0.88%, mid-cap stocks rose 2.3%, and small-cap stocks rose 3.24%.
• Growth stocks fell 0.97%, blend stocks gained 1.13%, and value stocks rose 3.41%.
• The S&P 500 fell 0.10% and the Nasdaq fell 1.84%.
• Of the 828 US-listed companies covered by Morningstar, 514, or 62%, were up, none were unchanged, and 314, or 38%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.22% from 4.26%.
• Yields on 2-year US Treasury notes fell to 3.50% from 3.52%.
• West Texas Intermediate crude prices fell 3.39% to $63.51 per barrel.
• Comex Gold prices rose 1.62% to $4,958.50.

Top Stock Gainers

XPO XPO, Enphase Energy ENPH, DaVita DVA, Adient ADNT, and Herc Holdings HRI were the top performers among US-listed stocks covered by Morningstar analysts.

• XPO topped the list, rising 37.47%, and it’s up 34.18% over the past three months. This no-moat company with a 1-star rating has increased 36.17% over the past 12 months. The stock closed the week at $203.61, trading at a 64% premium to its fair value estimate of $113.00 per share.
• Enphase was the second-best performer, with a weekly return of 34.67%. The 3-star stock has gained 46.80% over the last three months. Shares in this no-moat company are down 27.57% over the past 12 months. Enphase stock wrapped up the week at $49.80, trading at a 13% premium to its fair value estimate of $42.00 per share.
• DaVita ranked third for the week, with its stock rising 28.8%. The 3-star, narrow-moat stock has gained 23.16% over the last three months but fell 15.63% over the past 12. DaVita stock closed at $140.83, trading near its fair value estimate of $156.00 per share.
• The fourth-best-performing stock was narrow-moat Adient, which gained 27.21%. The 5-star stock has gained 26.18% over the last three months and is up 47.08% over the past 12 months. Adient finished the week at $26.46, trading at a 62% discount to its fair value estimate of $67.00 per share.
• Herc stock climbed 25.79% in the latest week. This no-moat company has seen an increase of 24.63% over the last three months but a decline of 14.82% over the past 12 months. The 3-star stock ended the week at $180.31 per share, trading at a 9% premium to its fair value estimate of $158.00.

Top Stock Losers

Molina Healthcare MOH, Gartner IT, Snap SNAP, Varonis VRNS, and PayPal Holdings PYPL did the worst among US-listed stocks covered by Morningstar analysts.

• Molina was the worst-performing stock of the week, falling 26.66%. This 4-star, narrow-moat company has risen 18.09% over the past three months but fell 44.22% over the past 12 months. The stock ended the week at $131.72, trading at a 43% discount to its fair value estimate of $311.00 per share.
• Gartner took the second spot, with a 25.42% price decline this week. The no-moat company, rated 3 stars, has fallen 35.88% over the past three months and fell 71.90% over the past 12 months. Closing at $156.33, the stock trades at a 7% discount to its fair value estimate of $164.00 per share.
• Snapchat came in third, experiencing a 24.68% drop this week. This 4-star, no-moat company has fallen 29.86% over the past three months and fell 51.83% over the past 12 months. The stock finished the week at $5.22, trading at a 43% discount to its fair value estimate of $9.00 per share.
• Next up is Varonis, which saw its stock price fall by 24.02% this week. The no-moat company with a 3-star rating has fallen 36.54% over the past three months and fell 48.79% over the past 12 months. At $22.67, the stock trades at a 21% discount to its fair value estimate of $28.00 per share.
• PayPal rounds out the list with a 23.35% decline this week. This 5-star, narrow-moat company has fallen 41.17% over the past three months and fell 49.44% over the past 12 months. The stock closed the week at $40.42, trading at a 50% discount to to its fair value estimate of $80.00 per share.

Highlights of This Week’s Market and Investing Events

• **Tuesday, Feb. 10: **December Retail Sales, November Business Inventories, earnings from Coca-Cola KO, Ford Motor F, CVS Health CVS
• **Wednesday, Feb. 11: **January Employment Situation Report, earnings from Albemarle ALB, Cisco Systems CSCO
• **Thursday, Feb. 12: **Initial Unemployment Insurance Claims report, January Existing Home Sales, earnings from PG&E PCG
• Friday, Feb. 13: January Consumer Price Index report