Companies are focused on growth. Sometimes, things don’t go to plan, and they have to cut back on headcount. That’s a bad sign. But sometimes, a company that’s growing finds ways to do more with fewer employees. That’s why markets send shares of a company higher after what first appears to be bad news. If a company can continue to grow with a smaller headcount, its profitability improves. With many of today’s AI trends underway, job layoffs at a company could be good news. For now, it’s good news for Dell Technologies (DELL). Reducing their total employees and refocusing on the A...

Every company operates differently. A great company is one that can operate with a lean platform. That means they may not be in the business of acquiring physical goods that then have to be manufactured. Ideally, investors should see the best returns with a company that has a high profit margin, and low cost to acquire that revenue in the first place. Companies with that structure that lead their industry should deliver great returns over time. One potential winner is Airbnb (ABNB). The company operates a platform that matches the supply and demand for space to rent. With consumer de...

With the entire market selling off in recent weeks, investors have a chance to buy shares of great companies, no matter what sector they’re in. For tech companies, it can mean getting a hefty discount to recent higher. For other companies, any dips may be short-lived. Investors who focus on industry leaders may have to pay up no matter what happens in the market. But in many cases, that can be worth it. Amid last week’s market volatility, only a handful of companies made new all-time highs. One such company is Parker-Hannifin (PH). The maker of motion and control components for vehic...

With markets undergoing high volatility, it will likely take a few weeks for the market to get back to a calmer daily trading range. Investors unused to volatility may want to look for ways to avoid watching big daily swings. One such way is to look for stocks with a low beta. Beta is a measure of how a single stock trades relative to the market. A stock that trades exactly with the market has a beta of 1.0. Companies with a beta under 1.0 are less volatile. They also tend to include many dividend-growth stocks, which can offer investors better long-term returns with the dividends re...

With the S&P 500 swinging by 100 points or more in daily trading, or the Dow making 1,000 point moves it’s easy to get caught up in the fear. To get past the fear, investors should focus on the facts. One fact of the past few weeks is that the economic data is okay. We’re not plunging into a recession right now, although growth is slowing. The Fed is on track to lower interest rates next month. All to plan. However, the market is selling off companies that are still seeing fast growth now. And if they can grow in a slowing environment, they may yet see a big swing higher by the e...

The stock market rally has been hit by a massive shock. Several concerns have come together at the same time to create a big selloff. However, the markets may be fearful, but as long as companies can continue to grow their earnings, their share price will recover over time. Tech companies may face increasing skepticism amid this latest market selloff. But even high-flying tech companies are high-flying for a reason. That’s because they’re capable of massively growing their earnings, even right now. That includes big data giantPalantir Technologies (PLTR). Shares surged following an e...

Investors looking for a place to hide in the stock market have limited options. When markets selloff, correlations tend to rise, and great companies get thrown out with the genuinely risky ones. That’s why a market selloff is a great opportunity for buying excellent companies at reasonable prices. Investors can further improve their odds by looking for companies that have a history of even holding up during bear markets. There’s no telling if we’ve seen the furthest back stocks will drop to in this selloff. But we’ve likely seen the worst of the market volatility. That means investor...

When consumers go to any store and see a sale, they get excited to buy. When investors see stocks on sale, however, they’re fearful. This recent market pullback, which has seen the Nasdaq drop over10% from its July highs, has played out quickly. But it also looks like a healthy pullback after a massive run higher this year. Investors can use this selloff to buy shares of great companies that are on sale now. Especially dividend-paying stocks Dividends take some of the sting out of market swings. And they offer investors cash. That helps diversify over time. A strong dividend company ...

When stocks pull back, the first instinct is to be cautious, if not fearful. With markets down significantly from their July highs and even down over the past month, fear is creeping up. However, the market volatility index sits near 20. That’s a level that typically separates a minor and necessary pullback from a bigger crisis. Seasonally, it’s not yet time for a bigger market decline. That means investors have a chance to buy into this pullback. And they should target great companies with strong earnings. Those are the firms that can rebound strongly in the coming weeks. One com...

This latest earnings season has given investors more insight into the roll out of AI technologies. Some companies are able to show big revenues and profits from rolling out AI. Others are starting to show signs of stalling out, slowing down, or simply not growing as fast as expected. Either way, that’s creating an opportunity for investors to separate great companies from the mediocre ones. And to determine which companies are best likely to rally in the challenging months ahead. One big winner is chipmaker Advanced Micro Devices (AMD). They’re the second-best player in the space rig...