Earnings season is in full swing. Investors have been willing to reward companies with strong guidance, and punish those with weak guidance. However, not all guidance is created equal. It’s a future estimate after all. Understanding why a company may struggle in the future can give a better understanding of whether or not a company has been fairly or unfairly punished when the market sends shares into a selloff. For instance, tech giant Microsoft (MSFT) sold off 6% on Thursday following earnings. The company’s web services division, Azure, was softer than expected. However, Microsoft...

Consumers have shifted tastes in recent years, spending less on goods and more on experiences such as travel and vacations. Part of that shift also includes a trend towards dining out more often. While there have been some worries about a slowdown in consumer dining, the latest earnings suggest that isn’t a worry. Customers continue to go out to dine, with many restaurant franchises benefiting from the ongoing spending. That includes Brinker International (EAT), owner of chains such as Chili’s. The company’s offerings are hitting the right price point to keep customers coming back...

Investors like certainty. They don’t always get it. Companies are often changing plans, either of their own volition or because of outside factors. For companies that have to contend with government contracts, negotiations can last for a long time. But so can contracts, once forged. There’s some uncertainty amid the launch of Donald Trump’s second term. That extends in just about every facet of government, including the defense industry. So it’s no surprise that a mixed outlook from Lockheed Martin (LMT) sent shares in a tailspin. However, Lockheed has a robust pipeline of government...

As expected, market volatility is on the rise in 2025. Many tech stocks carry high valuations following a massive bull market. That may not mean that the market’s overall rally is over. But it is a sign that investors may want to look for other sectors. More importantly, it’s also a sign to look for fundamental indicators that a company is performing well. That can include increasing earnings and revenues, as well as growing its customer base. When a company is growing its total subscribers, it can likely translate to increased revenue over time. Especially if it’s in an industry whe...

Consumers make up the bulk of the economy. And they continue to spend, which is a healthy sign for most companies overall, and for a stock market likely to trend higher. There are a few warning signs, however, like a drawdown in savings, and a rise in credit card balances. For now, it’s clear from corporate earnings that current debt levels look sustainable. Delinquencies have started to rise, but are not yet at a crisis point. That suggests investors may have some more upside ahead with companies such as American Express (AXP). They’ve noted record levels of card member spending,...

The stock market is back re-testing all-time highs. But while the overall market is back, several individual stocks are still well off their highs. Some are down for fundamental reasons. Others are simply taking a breather, and could be set to trend higher. And a few have been beaten down on news events but are likely to report strong earnings in the weeks ahead. Of the big-cap tech names, there’s been a notable laggard in recent months. Consumer tech giant Apple (AAPL). After peaking near $260 in late December, fears of slowing iPhone sales have hit shares. The stock is now off near...

Stocks got a jolt earlier this week, as President Trump announced that up to $500 billion will be invested in the years ahead to build up AI infrastructure in the United States. Several companies are part of that initiative, which will allow the U.S. to maintain its global lead. CEOs of several major tech companies made the announcement with Trump at the White House, including Sam Altman, CEO of OpenAI, which kicked off the AI revolution. The most likely winner on this buildout, however, will likely be database giant Oracle (ORCL). Oracle has shifted in recent years towards database ...

The stock market is trending higher, once again nearing all-time highs. Investors are bullish on the economy, as taxes are unlikely to rise, and regulations are likely to see hefty cuts. While that bodes well for the economy, it also means the stock market is likely to make new highs in the months ahead. And that will happen thanks to bullish trades going in and out of stocks. That should bode well for brokerage firms, a subset of the financial sector. These companies tend to move higher based on increased market activity. And they don’t carry the risk of an insurance company of bank...

The market still loves tech plays, whether AI or not. However, the rest of the economy still continues to show signs of booming. That means that other sectors can also perform well. And they may even be better performers this year. Recent data shows that inflation is moderate, and the jobs market remains strong. That bodes well for areas such as construction and other signs of a physical booming economy. That includes industrial goods. And that could mean a good year for an industrial distributor such as Fastenal (FAST). The company just missed on its most recent earnings report, ...

It’s been a challenging year for packaged food companies. Consumers have cut back on favorite name brands following years of above-average inflation. And the rise of new weight loss drugs have curbed appetites for many packaged foods. However, markets tend to not just react to events, but overreact. And now, investors may have a chance to pick up leading consumer brands at a reasonable price. Such stocks could even be market leaders this year. For instance, chocolate maker Hershey (HSY) has dropped nearly 20% in the past year. Shares are at 52-week lows. Yet even with a slight drop i...