Investors remain bullish, even as inflation remains stubbornly high. One sign that investors are content is with the spending on luxury goods. These areas don’t see as much of a drop during a recession, and during a boom they can fare quite well. Luxury trends show that we’re still in the boom. That’s good for most stocks trending higher today. It also means companies catering to high-income customers should continue to go on a tear. High-end retailerWilliams-Sonoma (WSM) just soared following an earnings beat. They also raised their dividend and increased their share buyback, two si...

Investors looking for market-beating returns over a multimonth period can find plenty of opportunities during earnings season. That’s because many companies will often have a solid earnings season, but shares sell off. That could happen because the stock already rallied hard going into earnings. Or the market didn’t like what it heard on guidance. But over time, higher earnings should drive shares of a stock higher. With earnings season winding down, a few such trades remain. One of those is with department store operatorKohl’s (KSS). The chain beat on earnings estimates, but the ...

Many of today’s big tech trends have one thing in common. They require massive amounts of data to process. It doesn’t matter if it’s for autonomous vehicles, or state-of-the-art AI software, or simply storing data such as photos and videos. If anything, these big tech trends suggest that data needs will accelerate. Companies that can organize, sort, store, and quickly recall data will continue to benefit from this trend. And that means increasing profits for investors. One of the most important components of data is its storage and management. That’s where database giantOracle (ORCL)...

Companies have a number of ways to fund their operating needs. A company can sell shares of stock, such as in an IPO. Selling shares dilutes existing shareholders, so companies that regularly issue shares are likely to underperform. Otherwise, companies may want to go to the debt market. By offering debt, companies aren’t diluting shareholders. But that debt adds a cost to the balance sheet that needs to come from cash flows. Overly indebted companies can be poor performers. Companies that use either or both of these tools moderately and responsibly as needed, however, can use the ca...

Retail is typically a tough business. A retailer buys up goods that someone else has produced, and has to sell them at a profit. Competition keeps prices from moving too far higher from other sellers. And the costs to operate stores can be substantial. That kind of business model has made for great long-term returns in some of the biggest retailers. They’re able to get the lowest prices thanks to the volume of goods that they sell. But some retailers can do even better with a tweak to the model. By becoming a membership club and charging an entrance fee, they can earn revenue outside...

A business exists to serve the needs and wants of its customers. A successful business will often look for ways to expand into more goods and services that customers demand. But mistakes can be made. And ideas that sound great may not lead to additional profits. A great company will periodically evaluate its actions and get rid of unprofitable business lines to better focus on its profit centers. For instance, energy giantChevron (CVX), recently closed two clean fuel plants. These plants made fuel out of products such as soybeans and corn, but government regulations have made that bu...

A specific stock or sector will often move in or out of favor with the market. When a stock or sector is unloved, valuations can become attractive, even with the fear hanging over. And a stock moving from being unloved to loved can create a great momentum play for investors. Today, many retail stocks are trending higher, overcoming fears of a slowing economy that have weighed on the space for the past few years. One big retail player trending higher isTarget (TGT). They reported a beat on earnings and revenues for the fourth quarter of 2023, and see improvements moving into 2024 as t...

Great companies can offer long-term market outperformance. The downside? Investors often have to chase shares and buy near all-time highs. However, sometimes a company falls out of favor briefly and can make for a great buying opportunity. Today, a great company with massive cash flow and profitability is slightly out of favor. It’s at a solid long-term entry point for buyers. And there are some uncertainties which, once cleared, will allow shares to move higher. The company is consumer tech giantApple (AAPL). Shares are down about 13 percent from their 52-week high. Besides cance...

“Picks and shovels.” That’s the term used for companies that supply the hardware needed to support a boom. While it may have started with a gold rush, today’s picks and shovels are often the key pieces of hardware needed to run today’s software. As the AI Boom continues to roll out, pick-and-shovel plays can continue to benefit. The hardware sellers may not make the biggest profit margins or even get the headlines. But they stand to win. Specifically, they stand to make steady profits while other companies pop and then drop. One pick-and-shovel play for the AI Boom isDell Technolo...

AI stocks have been soaring over the past year and change. Most of the focus has been on big-cap tech companies. They have the big bucks to invest heavily in these technologies right away. But there are other ways to play the trend. While not every AI stock will be a winner going forward, companies seeing real returns already may continue to benefit, and reward shareholders moving forward. One potential winner here is developerC3.AI (AI). The software company posted better-than-expected results in its latest quarter. Subscription revenue even rose by 23 percent. While not yet prof...