Inflation rates are coming down off of a 40-year high. But they’re still far higher than average. The process will take time to fully play out. When it does, prices will remain higher than they are now overall. Companies that can raise prices and still maintain market share and their customer base will be just fine as this trend fully plays out. Some companies keep customers thanks to popular, low-priced products. Others are able to raise prices as there are few, if any, alternatives to the goods or services they provide. One such example is in railroads, as each rail company oper...

Many industries tend to have a few big players. There will likely be a single player that dominates the industry. But things can change. And underdog companies looking to catchup to the big dog can potentially deliver better returns while doing so. That can come about from a better product or service mix, better customer service, or a way to improve profitability during an economic downturn. In the home improvement retailer space,Lowe’s (LOW) is down more than the overall market in the past year. It doesn’t help that the housing market has slowed down. However, Lowe’s could better...

Economies change over time. The U.S. economy is largely driven by consumer spending. Most of the goods that consumers spend money on are made overseas, where labor is cheaper. But that’s starting to change. A big reason why is automation. Rather than employ factory workers, technology allows for goods to be made with minimal human interaction. That’s making it easier for manufacturers to operate in the high-cost United States. Companies that play to that trend have years of growth ahead. In the shorter-term, they’re holding up well in a slowing economy. One such example isRockwell...

When markets are running scared, it may be prudent to look at companies making new highs. Chances are there’s something going on with the underlying business that explains why they’re bucking the trend. And chances are that trend will continue. There are always a few companies making new 52-week highs, even in a challenging market. The past few months have also seen a rotation towards more value-oriented and defensive stocks moving higher. One such play is telecomAT&T (T). The company hasn’t had much respect in recent years, as management looked to diversify the company’s operati...

Wall Street treats stocks like they’re sprinting. Each quarter, beating or missing investment results can lead to a big move higher or lower. But investing is like a marathon. Companies that consistently grow over time are rewarded over the long haul, no matter what the market is doing in the short-term. Investors can take advantage of short-term market fears to capitalize on great companies by buying them at a discount, and then letting the long-term take care of itself. One such slow and steady player isMicrosoft (MSFT). The tech giant kicked off tech earnings with an earnings beat...

Investors pay a high price for certainty. By the time they pile into a “sure thing” investment, the price is already sky high. Meanwhile, when there’s a lot of fear in the market, great companies and opportunities can be had for a relative bargain. Today, investors have far more bargain picks than at any time in the past few years. And buying companies moving to streamline costs today will play out doubly well from higher profits and higher share prices. While tech layoffs have captured the headlines, many other companies are looking to cut high staff costs too. One isNewell Brands (...

One simple investment strategy is to follow a successful investor’s coattails. Many will follow billionaire investors such as Warren Buffett or Carl Icahn as they enter into a new stock position. A few will even own the stocks that are owned or managed by the investors. Another way is to look at asset management companies. They may not have a well-known billionaire running the helm, but they tend to grow their assets over time -- with big profit margins along the way. One of the biggest players isBlackstone (BX). The asset manager is valued at over $100 billion, and manages assets ov...

Some stocks tend to hold up well in any market. One area is consumer goods companies. These firms may make humdrum products like prepackaged food, soap, shampoo or toilet paper, but those products never fall out of demand. When markets turn lower, these companies may sag as well. And that can provide patient, long-term investors with a decent entry point that they otherwise might not have made. Such opportunities are appearing today… That’s especially true as companies are being hit with higher costs from inflation, which is finally on the decline. In its most recent quarterly report...

The economy ebbs and flows. Today’s slowdown will eventually give way to the next recovery and move stocks higher. The stock market tends to start moving higher before the economic data shows such a recovery. That’s why investors should focus on companies that will benefit from the next boom during a bust. Such a move ensures that investors and traders alike can capture the biggest part of the move as it happens. When the economy slows, so does the flow of goods and services. That causes these companies to take a hit. But they recover, as the flow of goods and services tends to rise ...

Some traders look for pure growth. Or pure value. Others may look for companies capable of big swings, depending on where they are in their industry cycle. Those looking to target cyclical companies need to start buying when things look down and out, not when things are going well. By buying at the low point of the cycle, traders and investors alike can catch big swings in traditionally more stodgy companies – and even beat the market doing so. Right now, industrial stocks look out of favor with a slowing economy. That can translate into a number of companies, including those that ma...