Morningstar

Weekly Market Update: Stocks Flat as Energy Rises, Communication Services Fall

Zscaler and Qualys were among the week’s best performers.

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Building with logo for ZScaler in the Silicon Valley.
Smith Collection/Gado via Getty
Securities in This Article
TAL Education Group ADR
(TAL)
Qualys Inc
(QLYS)
Quanta Services Inc
(PWR)
Sea Ltd ADR
(SE)
Zscaler Inc
(ZS)

Stock Market Performance Summary

Morningstar US Total Market Index Performance

  • Week ended Oct. 23: -0.28%
  • Quarter to date: 0.13%
  • Year to date: 11.78%
  • Trailing 12 months: 14.01%

Sector and Style Performance for the Week Ended Oct. 23

  • The best-performing sectors were energy, up 1.56%, and healthcare, up 1.52%.
  • The worst-performing sectors were communication services, down 2.8%, and industrials, down 2.07%.
  • Large-cap stocks fell 0.47%, mid-cap stocks rose 0.45%, and small-cap stocks rose 1.03%.
  • Growth stocks fell 1.16%, blend stocks fell 0.3%, and value stocks rose 0.79%.

Other Key Stats

  • The S&P 500 fell 0.47%, and the Nasdaq fell 0.71%.
  • Of the 876 US-listed companies covered by Morningstar, 528, or 60%, were up, three were unchanged, and 345, or 39%, were down.

Bonds and Commodities

  • Yields on 10-year US Treasury notes fell to 5.00% from 5.09%.
  • Yields on two-year US Treasury notes fell to 4.69% from 4.74%.
  • West Texas Intermediate crude prices rose 1.48% to $103.35 per barrel.
  • Comex Gold prices fell 4.40% to $3,993.40.

Top Stock Gainers

Zscaler ZS, Restoration Hardware RH, Tenable TENB, Qualys QLYS, and Badger Meter BMI were the top performers among US-listed stocks covered by Morningstar analysts.

  • Zscaler topped the list, rising 23.15% for the week and up 67.13% over the past three months. This narrow-moat company with a 3-star rating is down 22.79% over the past 12 months. The stock closed the week at $255.15, trading near its fair value estimate of $250.00 per share.
  • Restoration Hardware was the second-best performer, with a gain of 21.63%. The 4-star stock has lost 19.96% over the last three months. Shares in this no-moat company are down 21.62% over the past 12 months. Restoration Hardware stock wrapped up the week at $137.43, trading at a 46% discount to its fair value estimate of $258.00 per share.
  • Tenable came in third, rising 19.89%. The 1-star, no-moat stock gained 27.93% over the last three months and 39.49% over the past 12. Tenable closed at $44.60, trading at an 83% premium to its fair value estimate of $23.00 per share.
  • The fourth-best-performing stock was narrow-moat Qualys, which gained 19.68%. The 3-star stock is up 48.47% over the last three months and 62.38% over the past 12 months. Qualys finished the week at $216.67, trading at a 22% premium to its fair value estimate of $170.00 per share.
  • Badger Meter stock climbed 19.50%. This narrow-moat company has seen an increase of 18.48% over the last three months but a decline of 17.15% over the past 12 months. The 3-star stock ended the week at $151.24 per share, trading at a 7% discount to its fair value estimate of $161.00.

Top Stock Losers

Sea SE, Graco GGG, Tal Education Group TAL, Quanta Services PWR, and Rolls-Royce Holdings RYCEY did the worst among US-listed stocks covered by Morningstar analysts.

  • Sea was the worst-performing stock of the week, falling 20.35%. This 5-star, narrow-moat company is down 27.83% over the past three months and 51.71% over the past 12 months. The stock ended the week at $74.63, trading at a 50% discount to its fair value estimate of $152.00 per share.
  • Graco was the second-worst performer this week, with a 18.39% price decline this week. The wide-moat company, rated 4 stars, fell 5.83% over the past three months and 13.66% over the past 12 months. Closing at $66.99, the stock trades at an 18% discount to its fair value estimate of $85.00 per share.
  • Tal came in third, down 15.12% this week. This 4-star, no-moat company is up 1.26% over the past three months but is down 14.68% over the past 12 months. The stock finished the week at $10.17, trading at a 28% discount to its fair value estimate of $14.60 per share.
  • Next up is Quanta, which saw its stock price fall by 13.52% this week. The no-moat company with a 2-star rating fell 14.09% over the past three months but rose 34.13% over the past 12 months. At $546.43, the stock trades at a 35% premium to its fair value estimate of $410.00 per share.
  • Rolls-Royce rounds out the list with a 13.18% decline this week. This 3-star, narrow-moat company is down 10.51% over the past three months but rose 13.53% over the past 12 months. The stock closed the week at $15.54, trading at an 18% discount to its fair value estimate of $20.50 per share.

Highlights of This Week’s Market and Investing Events

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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