Markets have been broadening over the past few months, with other companies taking the lead over AI stocks and big-cap tech companies. While the Mag 7 may yet surprise markets with further gains in 2025, it’s time for investors to get selective. While all Mag 7 companies benefit from AI, many are still garnering significant cash flows from other sources. That’s good news for investors, especially given the high profit margins many big-cap tech stocks have today. For instance, Meta Platforms (META) is still best known for owning social media giants Facebook and Instagram. Eyeballs on ...

With the AI boom still underway, investors have plenty of different ways to play the trend. After the big rallies in many chip stocks and big-tech names over the past few years, 2025 may be the year to think more defensively. Markets are showing some signs of exhaustion going into the start of the year. And bond yields are tracking higher at a time when they should be trending lower. One group of stocks can benefit from the rise of AI safely. That area is electric utilities. Historically a slow-growth play offering investors some steady income, utilities can benefit from the rise of ...

Markets are closing the year on an odd note. The Federal Reserve has lowered interest rates by a full point. But bond investors are pushing yields higher, particularly on longer-dated bonds. The 10-year Treasury yield is now at 4.6%, its highest for 2024, up over a full point since September. It’s possible that investors are simply repricing the bond market for increased uncertainty from the Fed. And from the potential impact of Donald Trump’s plans for tariffs and taxes in 2025. Whatever is happening, bond buyers can lock in some of the highest yields in 15 years right now. That’s a...

Bigger isn’t always better. Once a company has had substantial growth, or become the leader in its industry, its rate of return will tend to slow. Companies can usually offset this by finding related products to offer or new markets to conquer. But in some mature industries, the best course of action may be to figure out ways to simply increase productivity. That could lead to far better outcomes for investors over time. For instance, automotive giant Toyota Motors (TM) is up just 10% over the past year. The leading carmaker by volume, performance has been slow going. However, Toy...

Stocks famously climb a “wall of worry.” One thing that worries some investors now is the market’s valuation. By some metrics, the stock market is near values last seen near big peaks, like in 2000 and 2008. That’s not a healthy sign, by any means. However, if companies can grow their earnings, revenues, and income, the extreme valuation issue can be fixed in time. Some companies are also clearly still a strong value today. One such value today is Alibaba Group Holding (BABA). The Chinese e-commerce and cloud computing giant trades for about 10 times earnings. That’s cheap compare...

While investors may be looking for other opportunities in the AI space, chipmakers still remain the key hardware provider. And the increase in AI tools could potentially continue to fuel strong growth for the right chipmakers in 2025 and beyond. Investors who got into the trade early are right to look around for other opportunities and diversify out some profits. But other chipmakers are potentially set for some big and surprising growth in the months ahead. One such player is Qualcomm (QCOM). The chipmaker’s expertise in mobile communications chips make it a key player for bringing ...

While markets have been a bit jittery heading into the holidays, companies are generally bullish on the continued rollout of AI technologies into 2025. Billions continue to be invested in the hardware, software, and infrastructure needs for this trend. Investors may have missed some early gains, but there’s still much more ahead. Especially as new generative AI models and even artificial general intelligence (AGI) comes into play. The infrastructure for those plays is still crucial. That’s where chipmakers like Astera Labs (ALAB) come into play. Astera in particular serves hyperscale...

Markets can be fickle. When a high-growth company doesn’t exceed lofty expectations, investors can be quickly disappointed. And when investors are disappointed, a fast-growth stock can get beaten down. That could mean an opportunity for investors who buy shares at a much lower price. As long as the growth story remains intact, profits can be made down the line. And investors who buy during periods of fear and sell during times of greed can fare even better. That could be the case for investors in Novo Nordisk (NVO) today. The drug manufacturer saw its shares sink nearly 20% last week...

Overall, sticky inflation and a rising unemployment rate suggests that consumers may be getting burned out. Traders are keeping a close eye on consumer trends to avoid a danger from any slowdown in their spending, which makes up a majority of the economy. Consumer spending comes in all shapes and sizes, from cruises and vacations to pricey home goods and automobiles. For lower-income Americans, dining out is a key indicator. The good news? That trend looks strong. Restaurant operator Darden (DRI) just raised its full-year forecast as sales have been growing across its portfolio of br...

Stocks can rise or fall for any number of reasons. Over time, a company’s fundamentals, such as rising earnings and profit margins, should drive shares higher. In the short-term, any item of news could detail shares. That includes a potential government investigation, the departure of an old CEO, or even just poor guidance even after a strong earnings report. Investors who can look beyond short-term fears can often get a reasonable opportunity to buy an oversold trade. That could be the case withUnitedHealth Group Incorporated (UNH). The company’s shares have slid about 15% since its...