Stocks famously climb a “wall of worry.” One thing that worries some investors now is the market’s valuation. By some metrics, the stock market is near values last seen near big peaks, like in 2000 and 2008. That’s not a healthy sign, by any means. However, if companies can grow their earnings, revenues, and income, the extreme valuation issue can be fixed in time. Some companies are also clearly still a strong value today. One such value today is Alibaba Group Holding (BABA). The Chinese e-commerce and cloud computing giant trades for about 10 times earnings. That’s cheap compare...

While investors may be looking for other opportunities in the AI space, chipmakers still remain the key hardware provider. And the increase in AI tools could potentially continue to fuel strong growth for the right chipmakers in 2025 and beyond. Investors who got into the trade early are right to look around for other opportunities and diversify out some profits. But other chipmakers are potentially set for some big and surprising growth in the months ahead. One such player is Qualcomm (QCOM). The chipmaker’s expertise in mobile communications chips make it a key player for bringing ...

While markets have been a bit jittery heading into the holidays, companies are generally bullish on the continued rollout of AI technologies into 2025. Billions continue to be invested in the hardware, software, and infrastructure needs for this trend. Investors may have missed some early gains, but there’s still much more ahead. Especially as new generative AI models and even artificial general intelligence (AGI) comes into play. The infrastructure for those plays is still crucial. That’s where chipmakers like Astera Labs (ALAB) come into play. Astera in particular serves hyperscale...

Markets can be fickle. When a high-growth company doesn’t exceed lofty expectations, investors can be quickly disappointed. And when investors are disappointed, a fast-growth stock can get beaten down. That could mean an opportunity for investors who buy shares at a much lower price. As long as the growth story remains intact, profits can be made down the line. And investors who buy during periods of fear and sell during times of greed can fare even better. That could be the case for investors in Novo Nordisk (NVO) today. The drug manufacturer saw its shares sink nearly 20% last week...

Overall, sticky inflation and a rising unemployment rate suggests that consumers may be getting burned out. Traders are keeping a close eye on consumer trends to avoid a danger from any slowdown in their spending, which makes up a majority of the economy. Consumer spending comes in all shapes and sizes, from cruises and vacations to pricey home goods and automobiles. For lower-income Americans, dining out is a key indicator. The good news? That trend looks strong. Restaurant operator Darden (DRI) just raised its full-year forecast as sales have been growing across its portfolio of br...

Stocks can rise or fall for any number of reasons. Over time, a company’s fundamentals, such as rising earnings and profit margins, should drive shares higher. In the short-term, any item of news could detail shares. That includes a potential government investigation, the departure of an old CEO, or even just poor guidance even after a strong earnings report. Investors who can look beyond short-term fears can often get a reasonable opportunity to buy an oversold trade. That could be the case withUnitedHealth Group Incorporated (UNH). The company’s shares have slid about 15% since its...

Investors are taking profits and positioning themselves for the start of 2025. It’s likely that, even after a strong run, there’s still some more upside in the markets. That’s especially true for companies that can grow their sales, revenues, and earnings. 2024 was a strong year for tech companies that were able to deliver on growth. Even if the market is more volatile next year, that trend shouldn’t change. Investors may want to use any market pause right now to invest in top companies. One such winner isPalantir Technologies (PLTR). The big data giant had massive growth in 2024,...

When investors talk about the stock market, they’re usually referencing an index such as the S&P 500. Every index is made up of a mix of different stocks, and carry different weightings. Over time, markets tend to rise because weaker companies in the index are replaced with stronger companies. Such rebalancings occur periodically, and investors who buy shares of companies going into a bigger index can often get in ahead of billions of dollars flowing into a stock. The Nasdaq 100 just announced three additions. Two are fast-moving tech plays, leavingAxon Enterprise (AXON) a surpri...

While investors have started looking beyond the chipmakers to play the AI boom, it’s clear that chips are still central to that theme. The world’s greatest AI software can’t run if there isn’t the infrastructure for it, including energy and data centers to the hardware, including processing chips. It’s likely that many chipmakers will continue to benefit in 2025, and for now, the market will continue to reward the top industry players. For instance, chipmakerBroadcom (AVGO) soared nearly 25% last week and its market cap topped $1 trillion. The company’s CEO painted a massively bullis...

Every company will run into trouble at some point. For investors, it’s critical to know when the biggest dangers have passed. One sign is that even when facing bad news, the share price either doesn’t respond to it, or the stock goes up. That could be a sign that the turnaround is underway. And that things are starting to finally look up. Buyers who wait for this early signal can often see great returns from a new trend higher. For instance, airline manufacturerBoeing (BA) has been rocked with several scandals in recent years, and its shares have definitely paid the price. However, t...