When stocks are rallying and interest rates are low, it’s easy for companies to expand by either selling more shares or taking on debt. But selling too many shares dilutes existing shareholders and may spark a backlash. And when debt comes due and has to be refinanced, markets may balk. So companies that are improving their balance sheet now could be big winners down the line. One area where balance sheet improvement could help boost shares are with big media companies. There’s been a slowdown in advertising revenue, and competition for streaming services has kept profitability low.P...

The market has been excited about AI stocks for six months now, since the release of ChatGPT. Dozens of companies have announced plans to integrate AI hardware and software into their businesses. And it’s one part of the market where investors have been more than happy to send cash now. That’s led to a big rally in tech, that’s helped unwind most of 2022’s bear market. At this point, it’s time investors looked for AI stocks with a smaller market cap. That’s because big tech companies already have the headlines and story out. But smaller companies can still see a bigger percentage mov...

Most industries tend to consolidate over time. Retail is no exception, as many stores have gone by the wayside. Today, most big box stores compete with online retailers in some capacity, and those that run a niche tend to have the brick-and-mortar business to themselves. That’s allowed these companies to continue growing, which can benefit shareholders. It’s an even better benefit when they’re also generous with ever-increasing dividend payouts. Among the big box retailers, electronics chainBest Buy (BBY) offers the highest dividend yield, at 5.3 percent. That helps takes some of the...

One of the most valuable things a company can do is become a key provider of products or services to the point where they can raise prices without losing much, if any, market share. This pricing power can be crucial for beating inflation. And it can also mean a good investment for shareholders, as being able to raise prices ensures that profit margins stay high. One industry leader with pricing power isCorning (GLW). The specialty glassmaker just raised prices by 20 percent, citing higher costs. And as a key supplier for displays such as smartphones and televisions, Corning is unlike...

Many companies were caught during the pandemic as borders shut down. Without reliable just-in-time delivery systems operating, they’ve been working to diversify their manufacturing operations. For higher-level goods such as semiconductors, this means reversing a multi-decade trend to once again make goods in America. Signs of this trend have just started to pop up, and they’ll likely increase in the years ahead. While there may be higher labor costs to manufacture stateside, most businesses see the development as a positive one. For instance,Apple (AAPL) just announced that it will s...

It’s easy to say that there’s a lot of market uncertainty right now. But no matter what happens, there will always be uncertainty. And investors who wait for a clearer picture on how things develop don’t get great prices when buying assets. That’s why value investors start to buy during market panics, even if it’s not near the bottom. Today, investors can find companies that are making big investments now, even amid all the uncertainties facing markets today. While the economy looks like it’s slowing overall, there’s also a lot of spending coming from the government to support the do...

Sometimes a company makes a misstep that can cost it customers in the short term. Other times, a misstep can be more permanent in nature. The question is how each specific opportunity plays out. Since each situation is different, it helps to look at the strength of the market reaction. And how competitors are faring as well. If a company faces trouble in a bear market, it may get overlooked. But it may also shine a favorable light on a competitor. Recently,Anheuser-Busch InBev (BUD) saw sales of Bud Light drop due to a recent advertising controversy. While shares have slid, they’re d...

The economic data in the past week shows a slowdown in consumer spending. As a major part of the economy, that’s a big deal. Yet retailers are reporting better-than-expected numbers. That suggests there may have been too much pessimism in the short term. It also suggests retailers with a cost advantage can likely fare well in today’s environment. That bodes well for most big box players. But one is king of them all. That winner isWalmart (WMT). Their earnings not only beat expectations, but they raised their outlook for the year ahead – in contrast to other major retailers. Althou...

Most investors didn’t expect the banking sector to get into trouble this year. Generally, rising interest rates are good for banks. They make fewer loans, albeit at higher rates. However, many banks used the low-rate era to invest in Treasury bonds at lower yields. That’s led to the second, third, and fourth-largest bank failures in U.S. history this year. It’s possible that they won’t be the last. But while the banking sector is down, it’s not quite out. Several regional banks are updating investors on their deposit levels, and the news is largely good. It’s helpedWestern Alliance B...

While stocks have trended higher overall in the past few months, one part of the market has seen major interest from hedge funds and retail investors alike. That area? Artificial intelligence (AI). Companies that have been developing AI programs or otherwise moved towards servicing the growing tech niche have seen their share price rise. That’s a trend likely to continue. And it may give conservative investors some big-cap names to target. One of the biggest players isNvidia (NVDA). The manufacturer of graphics cards has pushed strongly into developing products that play specifically...