Weekly Markets Wrap: Stocks Stumble as Energy Rises and Utilities Fall

Stock Market Update for the Trading Week Ended March 20

• The Morningstar US Market Index fell 1.82%.
• The best-performing sectors were energy, up 2.99%, and financial services, up 0.35%.
• The worst-performing sectors were utilities, down 5.0%, and basic materials, down 4.82%.
• Large-cap stocks fell 2.0%, mid-cap stocks fell 1.26%, and small-cap stocks fell 1.64%.
• Growth stocks fell 1.71%, blend stocks fell 1.63%, and value stocks fell 1.54%.
• The S&P 500 fell 1.9% and the Nasdaq fell 2.07%.
• Of the 837 US-listed companies covered by Morningstar, 270, or 32%, were up, two were unchanged, and 565, or 68%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.39% from 4.28%.
• Yields on 2-year US Treasury notes rose to 3.88% from 3.73%.
• West Texas Intermediate crude prices fell 1.69% to $97.63 per barrel.
• Comex Gold prices fell 10.23% to $4,507.20.

Top Stock Gainers

SolarEdge Technologies SEDG, Venture Global LNG VG, Equinor EQNR, Tandem Diabetes Care TNDM, and Arm Holdings ARM were the top performers among US-listed stocks covered by Morningstar analysts.

• SolarEdge topped the list, rising 38.06%, and it’s up 57.12% over the past three months. This no-moat company with a 3-star rating has increased 168.90% over the past 12 months. The stock closed the week at $51.69, trading at a 27% premium to its fair value estimate of $36.00 per share.
• Venture Global was the second-best performer, with a weekly return of 20.4%. The 2-star stock has gained 125.32% over the last three months. Shares in this no-moat company are up 28.2% over the past 12 months. Venture Global stock wrapped up the week at $15.76, trading at a 30% premium to its fair value estimate of $11.00 per share.
• Equinor ranked third for the week, with its stock rising 18.05%. The 2-star, no-moat stock has gained 79.14% over the last three months and 66.96% over the past 12. Equinor stock closed at $41.60, trading at a 49% premium to its fair value estimate of $27.20 per share.
• The fourth-best-performing stock was no-moat Tandem, which gained 14.96%. The 3-star stock has gained 11.60% over the last three months and is up 19.45% over the past 12. Tandem finished the week at $24.82, trading at a 23% premium to its fair value estimate of $20.00 per share.
• Arm stock climbed 14.41% in the latest week. This wide-moat company has seen an increase of 13.85% over the last three months and a rise of 10.10% over the past 12 months. The 1-star stock ended the week at $132.43 per share, trading at a 62% premium to its fair value estimate of $80.00.

Top Stock Losers

Tencent Music Entertainment Group TME, Klarna Group KLAR, Mosaic Company MOS, Sabre SABR and VNET Group VNET did the worst among US-listed stocks covered by Morningstar analysts.

• Tencent Music was the worst-performing stock of the week, falling 28.94%. This 5-star, narrow-moat company has fallen 42.16% over the past three months and fell 28.82% over the past 12 months. The stock ended the week at $10.09, trading at a 63% discount to its fair value estimate of $28 per share.
• Klarna took the second spot, with a 20.79% decline this week. The narrow-moat company, rated 5 stars, has fallen 56.43% over the past three months. Closing at $12.61, the stock trades at a 70% discount to its fair value estimate of $45.00 per share.
• Mosaic came in third, experiencing a 19.49% drop this week. This 4-star, no-moat company has risen 11.01% over the past three months but fell 3.18% over the past 12 months. The stock finished the week at $23.59, trading at a 34% discount to its fair value estimate of $40.00 per share.
• Next up is Sabre, which saw its price fall by 17.5% this week. The no-moat company with a 4-star rating has fallen 5.07% over the past three months and is down 60.53% over the past 12. At $1.32, the stock trades at a 30% discount to its fair value estimate of $2.02 per share.
• VNET rounds out the list with a 16.08% decline this week. This 2-star, no-moat company has risen 6.97% over the past three months but fell 4.97% over the past 12 months. The stock closed the week at $8.82, trading at a 25% premium to to its fair value estimate of $7.50 per share.

Highlights of This Week’s Market and Investing Events

• **Monday, March 23: **January Construction Spending (month to month)
• **Thursday, March 26: **Initial Unemployment Insurance Claims report for the week ended March 21