Investors looking for market-beating returns have several strategies that they can use. One strategy is to buy a company that’s out of favor with the market. Ideally, the company is even hated. As long as that company can survive and the issues surrounding shares are temporary, the stock should trend higher in time. That could include big one-time events, like buying an oil company after a major oil spill. Today, the top contrarian opportunity is in Boeing (BA). The airline manufacturer has had a series of high-profile issues in recent months. It’s now come out that the company has v...

Consumers are finally starting to feel the impact of higher interest rates. They’re cutting back on spending to avoid having to pay high interest rates on borrowed money. That trend is impacting sales, particularly for larger products that often need to be financed. However, that trend could easily shift the other way when interest rates start to decline. Today’s investors may want to start looking for consumer goods companies to grab on sale. Today’s weakening sales numbers can easily reverse when rates drop. Home improvement retailer Home Depot (HD) is one of the first retailers to...

AI stocks have been on a tear, particularly big-tech companies that have been spending big on AI to grab an early lead. However, the market is showing an increasing reluctance to simply invest in any company willing to throw billions in AI. Now, we’re seeing that some companies that have been late to the party have been biding their time well. That’s because they can get in now, by employing technology that someone else has already developed. That’s the apparent plan for consumer tech giant Apple (AAPL). The company may be making a deal with OpenAI to build AI onto devices such as th...

The past 18 months have been great for just about any stock related to artificial intelligence (AI). However, the biggest moves have occurred in massive, big-tech companies. These companies have the capital to move in quickly and build out their AI infrastructure, after all. However, the real opportunity now may be in smaller companies playing to niche corners of the AI trend. That’s because it’s easier for a smaller company to double its earnings or market cap than a multi-billion-dollar tech giant. One smaller play is SoundHound AI (SOUN). The company’s AI voice technology services...

Markets tend to get jittery during earnings season. In the long-term, earnings matter. In the short-term, other factors may be at play. That can include how a company discusses its forward outlook. Or there may be some aspect to a company’s revenues or profit margins that lead to a selloff. Fortunately, that’s an opportunity for investors. While short-term traders may beat down shares of a great company, its creates a buying opportunity for those with a bullish outlook. For instance, metaverse video game company Roblox (RBLX) just reported fantastic earnings. However, the company did...

Every industry will have several players. Depending on the structure of the industry, there may be dozens of players or just a few. The ease of entering the industry and successfully competing can make a big difference. That’s why the restaurant industry has dozens of options. But the credit card networks have just four players due to the high cost of entry and building a network. Today’s tech companies often have just a handful of players. That’s because these companies can successfully build a network and become the most-used in their industry before competition can set in. When...

For investors, a company’s prospects come down to earnings. Rising earnings will drive a stock higher over time. And when a company reports great earnings, but shares sell off, it may create a buying opportunity in the short-term. That’s especially true when a company isn’t just reporting great earnings but manages to consistently beat bullish expectations. Such a company can likely lead to far higher returns for investors when bought during a selloff. Right now, app performance monitoring company Datadog (DDOG) fits the bill. Earnings surged and far exceeded expectations in each ...

Even with stocks near all-time highs, the recent pullback has left investors jittery. Small pullbacks are often just a healthy part of an overall longer-term market uptrend. However, they can also be the prologue to a bigger selloff. So far, it looks more like a normal pullback. For investors who want protection, however, the best strategy may involve buying a great company that’s also sitting on record cash. That company is Berkshire Hathaway (BRK-B), which is sitting on nearly $190 billion in cash. That’s a healthy level compared to its total market cap. But more importantly, it...

While investors have flocked to AI stocks in the past 18 months, some companies have sold off as AI technology threatens their business model. Software can now replace what an employee does, not only saving money, but also completing the work at a much faster rate. A third set of companies is one where AI may lead to some big opportunities but also has the potential to decimate an existing business. These companies are likely to get whipsawed. One such company is Adobe (ADBE). The software company’s core business could be under threat from AI. But the content creation ecosystem still...

While the market focuses on earnings, companies can do a lot to impact that number. It’s harder to impact revenues, or the raw cash coming in the door. When business is good, more money is coming in. And that will translate to higher earnings and should also propel shares higher over time. When an industry leader is seeing higher revenues, it’s also a great sign for the sector as a whole Hotel and casino operator MGM Resorts (MGM) just saw a big revenue beat, as well as strong earnings. Money is coming in hot for the company’s Macau operations, and Las Vegas revenues also look bul...