Earnings season can create some big swings in share prices. And they can create some counterintuitive moves. Companies that beat earnings can sell off. Companies that miss on earnings can see shares rally. And then there come the moves from any forward guidance. Over time, earnings drive a company’s share price. So even if a company misses the mark for some reason in a given quarter, if its earnings are improving, shares will likely trend higher in time. The market punishedAlphabet (GOOG), better known as Google, for its slowing cloud business. However, earnings grew by double-digits...

Bitcoin is having a strong year. Rumors of an ETF approval are helping to push the crypto’s price higher, even if the actual news hasn’t materialized yet. Chances are investors will continue to see big daily volatility in cryptos like bitcoin for some time. Those looking to play the overall rising trend in the space can find less volatile places to play it. That means ignoring companies with heavy bitcoin exposure, such as bitcoin mining companies. Cryptocurrency brokerages could benefit from the rising trend, particularlyCoinbase (COIN). The industry leader is the custodian of choic...

When stocks sell off, good names sell off with bad ones. And companies that have been lagging their industry peers tend to sell off harder. In a turnaround, however, they can have more room to run. Plus, they tend to have lower valuations than industry leaders, which means any upside surprise isn’t priced in. Investors have plenty of options in the tech space going into the end of the year. With stocks likely to see a seasonal rebound, some of the harder-hit and overlooked tech names may be a surprise winner. Case in point?Intel (INTC). The former leader of the chip space has been le...

The market’s selloff over the past few months may be nearing a peak. While there could be another leg lower first, the drop has hit great companies to own hard enough to be a buy here. That’s especially true for companies that don’t have many competitors. Most mature industries only have a few companies, and have to cater to customers on other criteria than price. When the economy recovers, as it always does, these companies can move to new highs. In the tightly-controlled credit card industry,American Express (AXP) caters to higher-end clients with higher incomes. They’re still bene...

Investors tend to focus on earnings and sales. But cash flow is also a critical component of analyzing a company. It shows how money comes in as revenue, is spent on goods and services a company needs to run, and how the remainder ends up on the balance sheet. A company with strong cash flows has enough money coming out at the end to pay a dividend to shareholders, or buy back shares, after investing in maintaining the company’s growth. This earnings season has seen a number of companies report strong cash flow growth. One of them is telecomAT&T (T). The company also beat earning...

Markets are still setting up for a year-end rally. But the selloff of the past month has taken many great companies far lower. While tech stocks have been hit the hardest, consumer goods companies have also seen heavy selling as they compete with the rising yields on bonds. That means investors may have a great opportunity to buy shares of defensive companies now, ahead of both a year-end rally and a likely move lower for interest rates later in 2024. Consumer goods giantProcter & Gamble (PG) reported great earnings that easily beat expectations, although some analysts saw the im...

One way to find market-beating trades is to look at companies that have suitors. A company that receives an unsolicited buyout offer can get a sense of what their shares would be worth if they were taken over. If the company rejects the offer, it may be a sign that they see even more value to their shares. That could lead to a higher offer, or a bid from a third company that sees an opportunity. Such a move is underway in the hotel sector.Wyndham Hotels & Resorts (WH) received a buyout offer at $90 per share. Wyndham rejected the offer, but shares still jumped 9 percent to abo...

The cryptocurrency market has been trending higher this year, following massive losses in 2022. Traders and investors alike are looking at improving conditions. The biggest potential improvement is better regulatory clarity. One way that regulators could improve things is by approving a bitcoin spot price ETF. That would make it easy for investors to allocate some capital to bitcoin with their existing investment accounts. Over a dozen proposed ETFs are before regulators. Rumors of approval tend to move crypto prices higher. That’s what happened on Monday. While the most recent rumor...

The market remains well off its summer highs, and may be in for a few more rough days of trading before moving into an end-year holiday rally. That means investors have a chance to buy companies well off their highs. With so many economic uncertainties, buying great companies that lead their industry look like the best bet here. They won’t pop as much in a rally as lesser-known names, but they’ll also tend to hold their value and compound safely over time. One industry leader isJ.P. Morgan Chase (JPM) among the major Wall Street banks. Despite concerns about the company’s assumpti...

The stock market usually moves higher due to just a handful of companies. Today, that’s centered around big-cap tech stocks working on artificial intelligence (AI) programs. In time, that may change. But while big names get the attention, companies that provide key services and supplies can also be big winners. That’s especially true after the big names have gotten the market’s attention and have run higher. Investing in suppliers can also provide useful signals as to the health of the economy. For instance, construction supply distributor company Fastenal (FAST) just beat on earning...