Earnings season offers investors the opportunity to profit from market overreactions. That’s because a company can have a great quarter, but still see shares decline. Or vice versa. What matters most is to determine if the market is overreacting. If the market has overreacted to the downside, investors may be able to earn a quick profit as shares rebound. Or it can allow an investor to build a stake in great companies at a reasonable price. One such opportunity now is with industrial conglomerateHoneywell (HON). The company beat on earnings and showed strong revenue growth. Plus, Hon...

Big tech earnings took some of the froth out of the recent market rally. It’s also causing growth names to sell off. The selloff will likely take a few weeks to play out. That could give investors an opportunity to buy into the big-cap tech names before their next move higher. With some companies still reporting, the real focus now should be on the big tech play with the best valuation and opportunities moving forward. Currently, that leadership belongs toAlphabet (GOOG). The parent company of Google is still in the early rollout of its AI technologies. But with so much focus on t...

Consumer spending data shows that customers continue to flock to stores. And that they’re opening up their wallets to buy. The total number of transactions continues to increase, indicating good news for investors in payment companies. That can include anything from the credit card companies, to back-end payment and services, including companies that provide services for merchants. While concerns over consumer spending have impacted this back-end, it’s clear that the growth trend of consumer spending may continue to rise. That’s why analysts are getting more bullish on payment compan...

For many companies, being a growth stock often means running big losses over time. Many early-stage growth companies have a great story behind them. But they have to prove themselves. Growing customers and revenues doesn’t matter if they keep losing money. When a company flips from losing money to making money, it’s a huge sign that the business idea is playing out. It may be great news for early investors, but it’s usually just the start of a successful company’s further rally. Fintech companySoFi (SOFI) just hit this milestone. High volumes for its lending segment helped propel the...

The winter months in North America typically bode well for investors in natural gas. However, the specific dates and moves in prices depend significantly on weather conditions. That can make getting the exact timing challenging. However, investors could instead look to invest in undervalued stocks that could rise higher even past a cyclical trend and rally for years to come. That would play well to America’s natural gas resources and our rising ability to export it to higher-priced markets. One up-and-coming play isChesapeake Energy (CHK). The producer of natural gas properties is co...

One of the great success stories of the past decade has been the rise of many big-cap tech names. Companies likeMicrosoft (MSFT) andAmazon (AMZN) have soared to new highs on the back of the expansion into markets such as web services. These services tend to have a high profit margin once set up and running. And they create a recurring revenue stream compared to one-off sales. That kind of business model is seeing an expansion thanks to its success. One tech play that appears to be moving in that direction isXerox (XRX). Best known for printers and copy services, the company is cha...

Often, a company will start to make changes over the years to better respond to consumer tastes. If those tastes are cyclical, they may change back over time. Or companies may discover that those tastes are too costly to serve. That can lead to a company restructuring on what has been its core strength. This is seen every few years with fast food companies, as they expand menus, only to contract them again in time. Other sectors have their versions as well. Energy companies have diversified out of fossil fuel production in recent years. But green energy is proving more difficult to e...

The market may be hitting new all-time highs, but many stocks aren’t going along for the ride. That’s creating some value plays for investors. Stocks with beaten down prices offer better valuations than high-flying stocks. Plus, beaten down stocks can also offer investors a great dividend as well. That pays investors well to wait for a recovery. Once that happens, investors can potentially earn years of returns in a short period of time. One beaten down name right now is conglomerate3M (MMM). The manufacturer of everything from air filters to office supplies just beat on earnings, bu...

Chipmaker stocks continue to trend higher. Even with these companies making big moves over the last year, there’s still more room to run as there’s growth ahead. Technologies such as artificial intelligence ensure a bright future. However, there are other hardware components that are critical to the success of a technology. And some of those names haven’t fared as well, since they don’t get the big attention that the chipmakers have. One key hardware component is memory storage. That could come from memory chips, or from disk drives. That’s where companies likeWestern Digital (WDC) e...

Homebuilder stocks have had a strong winning streak lately. The housing market as a whole has been frozen over the last year. Rising mortgage rates have kept existing homeowners from looking to change houses. That’s resulted in most home sales coming from new, rather than existing, homes. And it’s allowed homebuilder stocks to soar. Now, with interest rates potentially coming down, they could continue that winning streak in the months ahead. That could be a boon for a higher-end homebuilder likeToll Brothers (TOL). Already up 77 percent over the past year, Toll Brothers has strugg...