Weekly Market Update: Stocks Down as Utilities Rise and Financial Services Fall

Stock Market Update for the Trading Week Ended Feb. 13

• The Morningstar US Market Index fell 1.33%.
• The best-performing sectors were utilities, up 6.92%, and basic materials, up 3.04%.
• The worst-performing sectors were financial services, down 4.7%, and consumer cyclicals, down 2.02%.
• Large-cap stocks fell 1.89%, mid-cap stocks rose 0.32%, and small-cap stocks fell 0.67%.
• Growth stocks fell 0.75%, blend stocks fell 1.4%, and value stocks fell 0.36%.
• The S&P 500 fell 1.39% and the Nasdaq fell 2.1%.
• Of the 833 US-listed companies covered by Morningstar, 423, or 51%, were up, four were unchanged, and 406, or 49%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.04% from 4.22%.
• Yields on 2-year US Treasury notes fell to 3.4% from 3.5%.
• West Texas Intermediate crude prices fell 1.1% to $62.80 per barrel.
• Comex Gold prices rose 1.48% to $5,029.20.

Top Stock Gainers

VNET Group VNET, Generac Holdings GNRC, Solstice Advanced Materials SOLS, BorgWarner BWA, and Vertiv VRT were the top performers among US-listed stocks covered by Morningstar analysts.

• VNET topped the list, rising 23.21%, and it’s up 56.41% over the past three months. This no-moat company with a 1-star rating has increased 24.05% over the past 12 months. The stock closed the week at $13.8, trading at an 116% premium to its fair value estimate of $6.50 per share.
• Generac was the second-best performer, with a weekly return of 22.3%. The 3-star stock has gained 32.82% over the last three months. Shares in this narrow-moat company are up 41.51% over the past 12 months. Generac wrapped the week at $224.45, trading at a 10% premium to its fair value estimate of $197.00 per share.
• Solstice ranked third for the week, rising 20.71%. The 3-star, narrow-moat stock has gained 66.27% over the last three months. Solstice closed at $78.22, trading at an 11% premium to its fair value estimate of $70.00 per share.
• The fourth-best-performing stock was narrow-moat BorgWarner, which gained 20.24%. The 1-star stock has gained 45.01% over the last three months and is up 132.29% over the past 12. BorgWarner finished the week at $62.8, trading at a 66% premium to its fair value estimate of $40.00 per share.
• Vertiv climbed 19.92% in the latest week. This narrow-moat company has seen an increase of 36.46% over the last three months and a rise of 112.77% over the past 12 months. The 2-star stock ended the week at $234.53 per share, trading at a 29% premium to its fair value estimate of $184.00.

Top Stock Losers

Rapid7 RPD, Fortrea Holdings FTRE, Hims & Hers Health HIMS, TripAdvisor TRIP, and Mattel MAT did the worst among US-listed stocks covered by Morningstar analysts.

• Rapid7 was the worst-performing stock of the week, falling 33.69%. This 4-star, no-moat company has fallen 49.36% over the past three months and 80.73% over the past 12. The stock ended the week at $7.17, trading at a 29% discount to its fair value estimate of $10.00 per share.
• Fortrea took the second spot, with a 33.2% price decline this week. The narrow-moat company, rated 4 stars, has fallen 9.44% over the past three months and is down 30.09% over the past 12 months. Closing at $9.79, the stock trades at a 20% discount to its fair value estimate of $12.80 per share.
• Hims & Hers Health came in third, experiencing a 29.19% drop this week. This 4-star, no-moat company has fallen 59.51% over the past three months and fell 65.90% over the past 12 months. The stock finished the week at $16.3, trading at a 37% discount to its fair value estimate of $25.00 per share.
• Next up is TripAdvisor, which saw its stock price fall by 24.82% this week. The no-moat company with a 4-star rating has fallen 34.89% over the past three months and 41.56% over the past 12. At $9.60, the stock trades at a 38% discount to its fair value estimate of $16.60 per share.
• Mattel rounds out the list with a 23.31% decline this week. This 4-star, narrow-moat company has fallen 19.13% over the past three months and is down 27.03% over the past 12. The stock closed the week at $16.48, trading at a 37% discount to to its fair value estimate of $25.00 per share.

Highlights of This Week’s Market and Investing Events

• **Tuesday, Feb. 17: **Earnings from Energy Transfer ET
• **Wednesday, Feb. 18: **Housing Starts, January Capacity Utilization, January Industrial Production, Minutes from the January Federal Open Market Committee Meeting
• **Thursday, Feb. 19: **Initial Unemployment Insurance Claims, February Federal Reserve Bank of Philadelphia Index, earnings from Walmart WMT, Occidental Petroleum OXY
• **Friday, Feb. 20: **Q4 GDP, December Personal Income and Outlays report, December New Home Sales