Some stocks deliver slow and steady returns over time that can compound out into a phenomenal profit. Others can be volatile – but that volatility allows investors to earn even more over time, provided they don’t get scared out of a trade. Right now, a number of companies have been taking big hits following earnings. And while it’s scary, separating the companies likely to best rebound from this slowing economy will lead to big returns. Case in point?Amazon (AMZN). The retailing giant has expanded in a number of ways over the years. Last week’s earnings report caused the stock to div...

Sectors tend to start out with an explosion of activity, then consolidate into a few big names over time. That’s played out in everything from automakers to the media. As this happens, surviving companies tend to settle into making steady profits. And when there are just a handful of players, one will typically stand out as the industry leader. This company will fare slightly better than its peers for various reasons. One consolidated sector worth buying for the long term is the credit card space. It’s a key part of financial transactions and economic activity. And there are only a h...

One trend this earnings season has been a number of companies impacted by the strength of the US dollar in currency markets. As a result, multinational companies are reporting headwinds, as a strong dollar makes them relatively more expensive in local markets. That trend will end in time, and may even shift quickly once monetary policy stops tightening. As the trend reverses, companies that have been adversely impacted will suddenly benefit. Among multinational companies holding up strong right now isMondelez International (MDLZ). The maker of Oreo cookies and other snack brands is l...

In a bear market, smart investors buy. They know that great companies get sold off with overpriced ones during a market selloff. And buying great companies ensures better returns than chasing great companies higher during a bull market. Investors who follow this strategy can build a solid portfolio of blue-chip stocks in any sector. Right now, many great tech names have been hit the hardest. Of those tech stocks, there are some compelling valuations in companies that simply dominate their market. It’s hard to think of a company more dominant thanGoogle’s (GOOG) market share in the se...

It’s no surprise that when the economy is slow, consumers and companies scale back on their spending. And there’s a whole world of defensive industries that tend to fare well no matter what the economy is doing. While trade and commerce may slow during a recession, goods still need to move from their manufacturing point to the end user. And right now, the only way for goods to reach their final point is by truck. That bodes well forPaccar (PCAR). They’re a global manufacturer of trucks, and have a reputation that’s high in the industry. Over the past decade, the company has put 1.5 m...

The past few years has seen tremendous growth in alternative energy plays. And in a push for more environmentally-friendly ways of doing business. That’s led some to see the end of old-school energy companies like big oil plays. But most renewable technology can’t scale well or still remains ineffective for areas such as transportation. That’s why it’s likely that oil and natural gas will still be valuable commodities for some time. That’s why investors shouldn’t overlook some of the big energy plays here. Even thoughExxonMobil (XOM) hit a new 52-week high last week, the energy compa...

It’s likely the stock market won’t end its current downtrend until the Fed stops raising interest rates. But given how bear markets work, we may be closer to the end than the beginning. The best strategy now is to start buying great companies at beaten-down prices, rather than wait for a move higher. That’s because the start of a bull market may come with some skepticism. And investors who wait can miss out on the extreme bargains from the low. By buying great, industry-leading companies now, that can be avoided. One industry leader that may be nearing a bottom isNvidia (NVDA). In...

The only constant in life is change. Even great companies that have consistently rewarded shareholders for years come up with new products or find ways to improve profitability for the work that they do. That’s especially true for companies that are making the switch to the latest digital trends. While the Internet has now been around for a generation, its use is still growing as more join online networks and conduct tasks there that used to only take place in the real world. For example, banking is still largely done with older technologies, with online banking still susceptible to ...

It’s no surprise that investors who follow company insiders can make above-average returns over time. Company insiders are knowledgeable about their company and its operations. But following big-name investors after they build a stake in a company can make a similar profit. That’s because those who make a big buy can often earn board seats, and work on strategies to improve the business, sell off a division, or otherwise do something to result in better performance for investors. Activist investors have been increasingly active as this bear market has dragged on. One of the more inte...

Companies can’t control what the stock market is doing. That’s why great companies will sell off in a bear market along with poor ones. It also means that companies facing strong growth may continue to do so, even if the market doesn’t recognize the value in the short haul. Patient investors can use bear markets to buy into growth opportunities. It’s also a great time to weed out companies that looked like growth opportunities but haven’t been. One such growth opportunity right now isRoblox (RBLX). While other companies are spending billions to build out their own version of the Meta...