Earnings season is underway. And this quarter, companies that miss on expectations are getting hit harder than average. However, companies that beat expectations are being rewarded above average. And for companies that aren’t only beating on earnings, but are raising their expectations for the full-year, that trend is even better. As investors demand to see results from companies this quarter, those who can deliver are in great shape. That includes payment company PayPal (PYPL). Shares popped higher after the company beat on earnings and raised full-year guidance. However, PayPal ...

Earnings season gives companies an opportunity to not only report how well they’ve done in the most recent quarter, but how they expect the next few quarters to play out. For companies that don’t have good numbers to report now, future expectations can help soothe the markets. That’s especially true when a company has been facing some known challenges. That can include a rise in competition, price pressure, or changing customer tastes. For fast food giant McDonald’s (MCD), it’s been a mix of all three. Shares have been declining in recent weeks, in expectation of a weak quarter. Whil...

For nearly 18 months, big-cap tech stocks have dominated the market. Most stocks have traded flat or even declined over that time. But in the past few weeks, tech stocks have pulled back, but other stocks have started to show signs of life. Given how long the big tech outperformance lasted, there’s more room to run higher. Even for stocks that have already had some big jumps over the past few weeks. That includes industrial conglomerate 3M (MMM). Shares soared over 20% on Friday, following earnings results, which were far better-than-expected. With growth trending higher, shares can ...

Usually, companies have to increase their sales to increase their revenues. However, companies that can add new features and services can increase their revenues. Even if they don’t have additional sales or customers either. In an industry that’s built on such add-ons, companies that have offered low-cost frills have built a niche. But having additional add-ons can allow them to continue claiming a cost advantage, while also offering a higher-end experience. That’s likely the move behind Southwest Airline’s (LUV) decision to abandon its open seating model and move to assigned seating...

When investors expect a stock to grow like gangbusters, any sign of slowing growth can pose problems. But many companies offer decent growth right now, but not necessarily exceptional growth. Such companies can likely deliver strong returns, at least for investors who are patient over time. That extends to growth stocks. AI is a trend that will take years to play out, much like the rollout of the internet. Investors who are focused on the fastest-growth stocks now are getting hit hard in a pullback. But for companies that are taking a slow-and-steady approach to growth, likeInternati...

During a market boom, it’s tempting to start buying into more speculative companies. While that can potentially mean bigger returns, it also increases the risks. Conversely, companies that have a conventional line of business can continue to grow, even if they also invest in more speculative endeavors. Right now, many companies that have been dabbling in new technologies are seeing lower-than-expected demand. But as long as their core business is strong, shares should continue to rise. For instance, demand for electric vehicles has not met some of the bullish expectations from a few ...

Last week’s market selloff was heavy on tech. Given how tech stocks tend to outperform the market, their underperformance in a selloff makes sense. Investors patient enough to wait for a 10-20% pullback in industry-leading tech stocks are often rewarded for their performance afterwards. Getting a reasonable entry price on a high-growth stock can lead to better returns than just buying at the top, or just holding indefinitely. With last week’s selloff hitting the chip space rather hard, semiconductor stocks might be near an entry point for aggressive buyers. Currently, the chip sto...

Markets don’t just react to events. They often overreact. That’s why when a short-term problem flares up and goes away, the market tends to react sharply, then revert back to whatever it was doing before. Last week saw the largest IT outage in history. A security software update caused a number of systems to slow down, crash, or otherwise stop responding altogether. However, the world was largely able to move on and get its work done. However, the cybersecurity stock involved, CrowdStrike (CRWD), took an 11% drop on the news. This looks like a classic example of a short-term problem ...

With the stock market starting to show some love for smaller companies, it could also be a time to look towards investing overseas. That’s because the market’s returns have been dominated by big-cap tech stocks domiciled in the United States. Investing internationally offers investors global diversification. And with inflation on the decline globally, and with global central banks nearing a point of interest rate cuts, international stocks stand to benefit in the years ahead. While investing internationally can be challenging, investing in well-established businesses can be a great w...

After dominating market returns for the past 18 months, tech stocks are starting to take a breather. But the overall market continues to trend higher, thanks to a rotation underway. Investors are finally taking some profits in tech and moving that cash into lesser-loved stocks. Those stocks tend to be a bit slower moving, but after tech’s latest outperformance, they may take the lead in the second half of the year. That could mean good returns in more value-oriented stocks. One such value play here is Johnson & Johnson (JNJ). The healthcare giant is flat over the past year, but j...