The market’s bearishness is reflected in the tendency to sell shares of a company first, and ask questions later… if at all. However, many companies selling off right now are still fine operationally. A few may even benefit from the current slowing economy, as competitors change their business or even go bankrupt. That makes this a stockpicker’s market. And the way to profit from that is to find companies that have been hit hard from specific fears that can abate in time. A case could be made for payment companyBlock (SQ). Shares took a 15 percent dive last week on news of a hedge fu...

With all the ups and downs of the stock market, it’s sometimes easy to forget that a stock is an ownership stake in a company. And that shareholders, not company management, are the owners. Some company management teams may use that to their advantage, by awarding themselves substantial amounts of stock options, which then dilute existing shareholders. However, other companies may encourage executives to buy shares outright, and take an ownership stake in the company that’s also paying them a salary. That’s the case withBerkshire Hathaway (BRK-B). Greg Abel, the head of non-insurance...

Typically, growth stocks are a tough investment when economic growth has become slow and uncertain. The lofty valuations and predictions that look attractive in a bull market don’t look as good when the economy is likely to contract. However, some growth companies are able to position themselves for winning trends, even in a slowing economy. And those that can deliver could be the first stocks to make new all-time highs when things look rosy again. Right now, one bright spot in the growth space is in artificial intelligence (AI). From big tech giants to software companies, investment...

While the next market-moving news may not be positive, over time, investing in the stock market is more rewarding than betting against it. And with so many companies knocked down last year and into the current banking fears, investors who start buying shares of companies with strong brands could see big profits ahead. Best of all, brands can include a variety of industries. And chances are that brand is a household name, which brings familiarity in uncertain times. One of the world’s best-known brands isStarbucks (SBUX). The coffee chain has created a “third place” between the home a...

While the stock market has been down over the past year, some sectors look set for a move higher. One such space is in commodities. Inflation remains sticky, which tends to keep prices of hard assets from declining too much. Plus, for many commodities, the fundamentals look strong today. There’s high demand and potentially lower supply for a number of resources. A second year of the Russia/Ukraine conflict looks likely to keep the wheat market tight in particular. One estimate is that wheat prices could rise as much as 20 percent as we get into the end of the spring. And that’s to sa...

Many industries consolidate over time into just a handful of players. These oligopolies can jockey for market share. Chances are one of the players will move towards higher-end consumers to differentiate, and others may shift to the lower end. Either way, the company that can sport the highest profit margin will typically be the best performer for shareholders over time. Higher profit margins provide more capital for reinvestment in the business, or for dividends or share buybacks for investors. In the credit card industry,American Express (AXP) has carved out a higher-end niche than...

Investors are more than willing to place trades outside their comfort zone in a bull market. But in a slowing economy, they tend to gravitate towards the tried and true. That explains the relative outperformance of value stocks in a flat or sideways market. Investors do the same thing as consumers. They cut back on new products and services, and stick with what’s tried and true. That’s why there are so many brands out there – including those at a reasonable price. The most recent economic data shows a slowdown in restaurant spending. But even in a slow economy, going out to dine can ...

Market volatility is back. That means that companies can expect their share price to see sizeable swings by the day. As markets get turbulent, investors should look for companies that can continue to grow no matter what the economy does. Many gravitate towards income stocks. But a high payout along isn’t enough. Stability, rather than the potential for big growth, may win out in the market in the months ahead. That’s where a company likeHoneywell International (HON) comes into play. As an industrial conglomerate, Honeywell has a number of businesses that tend to be slow and steady. S...

Market sentiment has turned on a dime, as fears about the solvency of several banks has surged. In this flight to quality, investors are moving into assets such as Treasury bonds and gold. However, some stocks could be a better option here. That’s because some companies will continue to grow their income. And that can be used to buy back shares, pay out a growing dividend, or otherwise reward those with the willingness to buy in a fearful market. One of the top cash-generating stocks isMicrosoft (MSFT). The company is a tech conglomerate, operating software services, web hosting, and...

Most companies tend to find that they have their best profitability in a narrow niche. But over time, competition or changing consumer tastes can eat away at that niche. Many firms have found that expanding into other roles can be a long-term winner. Big tech companies in particular have been good about expanding beyond just one piece of hardware or software, and into creating a suite of experiences that can bring back customers time and time again. One company could become the next to make a similar move:Roblox (RBLX). Best known as a video game platform, it has the potential to mov...