When it comes to the financial sector of the market, most traders look at big banks, credit card companies, and even insurance firms. But there are other parts of the sector that could benefit traders who buy while stocks are out of favor. One such area is in the asset management space. Companies that cater to providing funds and access to financial markets for individuals and other companies alike tend to trade relatively cheaply to the overall market. That could soon change, as the sector has been ongoing consolidation in recent years. One company,Franklin Resources (BEN), is curre...

Some companies are able to pass on price increases to consumers easily. Others are not, and often have to absorb the costs. A consumer goods company can likely raise prices just over the rate of inflation most of the time, and not lose too much business. Companies like a utility or telecom, which may have to wait for approval to raise prices, on the other hand, may not be so lucky. As investors continue to remain defensive right now, it’s clear that some defensive plays look more attractive than others. One such company holding up well isProcter & Gamble (PG). The company beat...

It may sound like a cliché at this point, but when there’s a gold rush, the folks selling picks and shovels tend to be the ones to make a consistent profit. No matter what the industry, the key suppliers are the ones that tend to perform the best as other companies in the space duke it out for market share. That’s why such companies could provide great returns here. With many companies still reporting supply chain issues, suppliers that can deliver can likely reward shareholders. One compelling supplier isSilvergate Capital (SI). The bank holding company has become a key integrator f...

Many sectors of the market trend towards an oligopoly, where a small number of players will dominate the market. One such example is the media industry, where six large corporations control about 90 percent of the news today. Other sectors also have this factor at work. Smaller companies end up being bought out by larger companies, and the largest companies tend to jockey for position based on their ability to grow. For example, in the banking space right now, only 5 major banks control the overwhelming amount of the industry, even though there are hundreds of players. Within that sp...

As the market goes, so do most individual stocks. That’s especially true for early-stage companies or new combinations with a limited market history. A bull market can mean a new company will tend to be valued highly, likely even higher than it’s worth. But a bear market can mean a new stock will likely be undervalued until it can prove its mettle (or until the market changes to bullish again). One new name on the market now isWarner Brothers Discovery (WBD). The merger of media assets fromAT&T (T) andDiscovery Networks (DISCA), it’s a new stock trading at a discount to other nam...

After a massive surge higher in a number of commodities as Russia invaded Ukraine, prices for many such goods have come back down a bit. But company executives remain bullish on the space, and with ongoing tensions in many parts of the world, not to mention high inflation, the commodity bull market appears here to stay. Investors who buy top commodity stocks now, even with shares near 52-week or even multi-year highs, can continue to play this trend higher. One space that looks attractive is natural gas, where prices have continued to soar. May futures recently crossed $7 per million...

When an industry is new, many companies will flourish. Over time, the market will determine the best winners in the space. It could come from a better product, a better brand, a better business model, or simply lower costs. Over time, that leads to consolidation as weaker players go out of business and smaller players are bought out. Investors who buy ahead of an offer can make money on the company being acquired. But owning the industry leader over time can be lucrative as well. One interesting industry consolidation trend underway right now is in the field of toys.Hasbro (HAS) is g...

Investors remain concerned as inflation is running at its hottest since 1981, and as commodity prices have spiked higher, weighing on the overall economy. But no matter how good or bad the economy has been, individual companies that have been able to grow their earnings can thrive in any market. That’s especially true when a company is in a space where poor performance in a weak economy is expected. One such example isAmerican Airlines (AAL). The company reported that its first-quarter revenues came in better-than-expected. The company’s revenues are still down 16 percent from the sa...

Wall Street analysts tend to be quick to upgrade stocks that are rallying, and quick to downgrade a stock after it’s fallen. Traders who take the opposite tack tend to cash out during a rally, and tend to end up buying in when shares are at a bargain price. With many companies already down heavily, it’s no surprise that downgrades continue to trickle in, even though the worst may have passed for the stock market for some time. Case in point?Nvidia (NVDA). The world’s leading graphics processing company has recently been downgraded, adding to the drop of the prior four trading days. W...

Historically, defense stocks haven’t necessarily related to the defense and aerospace industry. However, in today’s economic and geopolitical climate, it’s not a bad place to look. The space has tended to consistently outperform the overall stock market, and even with a spike in recent weeks, shares of many big names haven’t reached an overvalued level right now. That points to further moves higher, even if geopolitical tensions calm down. One such name in the space isGeneral Dynamics (GD). The defense company trades at 20 times earnings. While shares are up on the latest war fear...