The stock market is made up of many sectors. Most investors focus on whatever sector is hot right now. For nearly two years, that’s been tech thanks to the rollout of AI. But tech returns have slowed in recent quarters. Other sectors are starting to show stronger returns. Investors who shift more towards these other sectors can buy into a more reasonable value right now. And they can also get a higher income than in tech plays. Either way, that can help investors through a tough time, whether the economy sinks into a recession next year or not. One top play is the utility sector. ...

Most green energy stocks have been out of favor with the market over the past few years, thanks to low conventional energy prices. But with the prospect of a renewed interest in green energy and the upcoming election, these stocks may find support. In the green energy space, only a handful of players have been able to thrive on their own. One of them is a major play on the continued rollout of solar energy. That leader is First Solar (FSLR). It’s slightly outperformed the market year-to-date, even as other plays in the solar space have struggled. Plus, earnings are up 105% over th...

Markets are quick to reward fast-growing companies, at least until that growth stops. Companies that have a more slow-and-steady approach tend to get overlooked. But over time, their returns can equal that of a growth company, with far less volatility. Given how markets are pushing to all-time highs on the back of growth stocks, now may be the ideal time to look for more steadier stocks that can keep delivering, no matter what happens in the economy. One sector that tends to deliver great long-term results is insurance. It’s a highly-regulated, but highly-profitable business. And one...

Since late 2022, AI-related stocks have been on a tear. The best returns have come from some of the largest companies by market cap. They’re able to move billions of dollars quickly into AI and adapt. Other companies have had to take a slower route. But that trend is starting to shift as the next stage of the AI boom expands. It’s likely that other companies will benefit more than big-cap names going forward. One potential play could be Broadcom (AVGO). The semiconductor manufacturer may be working on a deal to work more closely with OpenAI for AI chip designs. Whether the specifi...

Shoppers love a bargain. With investors still contenting with higher prices thanks to years of above-average inflation, companies that cater to finding a bargain continue to post strong results. That’s especially true with apparel retail. Shoppers are more than willing to open up their wallets if they can get what looks like an exceptional bargain on clothes. And a few companies have a business model that allows them to thrive in this challenging environment. The industry leader for this trend is likely The TJX Companies (TJX), parent of TJ Maxx and Home Goods. TJX just reported grea...

Costs have been rising over the past few years. For companies, the cost to manufacture goods has risen thanks to higher commodity prices, higher labor prices, and even higher regulatory costs. When any of those costs can go down, profits can improve. One big way to bring costs down quickly is for regulatory costs to drop. That can include lowering corporate tax rates, or lower tariffs on imported goods. The European Union is about to launch a 9% tariff on electric vehicles manufactured in China. That’s far lower than an estimated cost of 20.8%. It’s alsogood news for Tesla Motors (TS...

While AI stocks have had a great run since ChatGPT launched in late 2022, we’re still in the early stages of the technology. Many who have used AI programs aren’t using them consistently. The ability to benefit from AI tools is still in its early stages. That’s why the buildout of AI still looks attractive for investors over the long haul. It will take years to build AI programs that are more intuitive and easy to use. That also means that other companies in the AI space can potentially take the lead in the space.  For instance, Advanced Micro Devices (AMD) just made a $4.9 billion b...

While the market has been focused on all technologies that start and end with AI, there are several trends within that space that have yet to reach their full potential. With so much focus on the growth of AI itself, some of the software plays in AI have been overlooked. One key area has been cybersecurity. 2024 is on track for the worst yet for ransomware attacks. And a massive data breach last week may have compromised billions of personal records. With that trend in mind, cybersecurity companies may have their work cut out for them. One key player is Palo Alto Networks (PANW). ...

The housing market has been effectively frozen for nearly two years. High interest rates created high mortgage rates. That deterred possible sellers from changing homes, given the high jump in interest rate costs. Now, with rates set to decline later in the year, the housing market could be set to open up. And lower rates could help all homeowners, but especially make it easy for first-time buyers to get into a starter home. That’s good news for companies like D.R. Horton (DHI). The construction company builds a number of homes, from single-family to townhomes, to multi-units. It cou...

The market continues to rebound from its steep selloff. With many of the most heavily sold names bouncing back the strongest, investors who look for slower-moving companies could see the best value here. That’s because the market rally this year has been driven higher by just a few big-cap tech companies. Other companies are starting to show signs of catching up, and will likely end the year strong. That means investors who buy during today’s market fears could see the best returns with less popular companies right now. Computer hardware manufacturer Cisco (CSCO) is one such play ...