A bear market will take down most stocks, irrespective of how an individual company is performing. This creates a situation where investors can set themselves up to buy great companies at reasonable prices. A great company can be an industry leader, or one that has some sort of competitive advantage or potential sources of growth. Whatever the reason, when markets recover, great companies tend to resume their long-term compounded growth over time. Investors can buy nearly any big tech company at current prices and get a relative bargain based on valuation over the past few years.Adob...

A number of technologies are being developed, even with the economy teetering on the edge of a recession. Some that are under way already will likely develop a lead over competitors, who may have a tough time getting under way thanks to rising interest rates and a pullback in tech trends. One of the biggest tech trends last year was the metaverse. A number of companies talked about developing the concept. With the slowdown underway, companies that are already capable of generating revenue in the metaverse are likely to benefit from this trend. One leader in the space isRoblox (RBL...

The stock market is usually driven by growth names. While some of those stories fail to pan out, when the going gets tough, the market tends to pivot towards certainty. And nothing is as certain as regular cash dividends. Over time, dividend payers outperform non-dividend payers. And dividend stocks that grow their payouts do even better than those with a consistent payout. So it’s no surprise that companies that can grow their dividends now are getting some big market attention. One such example isFedEx (FDX). Shares rallied nearly 15 percent as the company announced a dividend incr...

While the economy is slowing, many trends in place will continue, even at a slower pace. Companies that can cater to the needs of growing industries can still grow and eventually even buck a market downtrend. Companies that help grow out some of today’s top tech trends, like electric vehicles or the 5G network, will be most successful if they’re already the industry leaders today. As long as that advantage can be maintained, they’ll likely continue to keep their market share. One such company that’s been a poor performer isQualcomm (QCOM). The manufacturer of wireless chips is the pe...

The stock market set a new low last week, and again on Monday. That may be a re-test of the prior low before moving higher, or it may more pain ahead for investors. Those looking for when to buy during a market drop have many different ways to do so. For some types of companies, knowing which key metrics indicate a solid value now could lead to some astute buys now. For instance, in financial stocks, book value tends to be a conservative measure of what a company is worth, as book value looks at what a company’s assets were worth when acquired. Now, many well-known companies are g...

Whether the economy is doing well or poorly, people want to be entertained. In a struggling market, most can find the money for inexpensive forms of entertainment such as movies, books, or video games. Of the three, video games have had the strongest growth, and the best revenue. And the space has seen some merger activity in recent months reflecting the notion that the space is still undervalued when looking at the long haul. One top publisher isTake-Two Interactive (TTWO). Shares are down nearly 30 percent in the past year, partly due to the company’s acquisition of publisher Zynga...

Consumers may be cutting back on higher-priced goods right now as housing and fuel costs have been on the rise. But for some consumer goods, raising prices to contend with inflation hasn’t been a problem. These consumer goods companies are thus able to maintain their profit margins, even as other companies are facing a squeeze thanks to the high rate of inflation right now. Such companies also provide investors with a safe-haven in the stock market, as growth names have fallen well out of favor. One company delivering on inflation-busting results right now isCampbell Soup Company (CP...

Consumers have been spending more in the past year, but overall sales are down. It’s inflation that’s causing the total rise, at least for the moment. Retailers are having to deal with two conflicting issues. Supply chain disruptions are leading to genuine shortages. And consumers cutting back on spending due to inflation is leading to an inventory excess in other areas. “Cheap chic” retailerTarget (TGT) sounded this unusual warning. The company cut its earnings guidance on Tuesday, leading to shares dropping at the start of the day. However, an excess of inventory could likely lead ...

Companies that lead their industry tend to have some special factor that allows them to make a larger profit than competitors. This can be exploited with higher growth rates… or by using some extra tools to ensure they hold up better than the competition during a market decline. Such tools can come in the form of a dividend, an astute buyback, a major merger, or even splitting shares. A share split may not change the total size of a company, but a lower price can make it easier for investors to trade shares. That may be the reason behind the 20-for-1 split just made fromAmazon (AMZN)...

In frustrating markets, a few long-term strategies can work well that investors may want to consider now. One such strategy is to invest in companies that pay dividends. Taking that approach gives investors a longer-term view. Within the dividend-paying universe, companies that have a history of raising their dividends tend to perform even better than those that just pay a dividend. Over time, the results can compound for market-beating performance, as long as investors remain patient. One such company that just raised its dividend itAlexandria Real Estate Equities (ARE). The REIT sp...