Some sectors are secular, which offer a long-term growth trend. That’s where growth stocks such as those playing to the AI trend have seen great results this year. Other sectors are cyclical, leading to some years with great returns, followed by poor ones. However, knowing how to play the cycle can lead to great returns for those looking to buy and hold for a few months to a few years. Investing in beaten-down leaders with strong cash flows is the key. In the energy sector, oil prices have trended lower. That’s pushing all companies in the space lower, including industry leaders like...

The stock market is always in a mood. Usually, it’s upbeat, reflecting the fact that stocks rise over time. Sometimes, however, it’s dour. And that mood goes from the overall market to specific sectors, and even down to individual stocks. As long as individual companies can grow, they can overcome any short-term market fear in time. Even when that fear seems overwhelming, or a potential existential threat to a business. For instance,J.M. Smucker (SJM) has had a tough year. The food and pet food producer has had to deal with fears of declining demand as new weight loss drugs have c...

While trading in the markets can be exciting, it’s best to balance a portfolio with some long-term opportunities as well. Investing in value and dividend-focused stocks can be as boring as watching the paint dry, but over time, it can also help lead to great returns. Plus, companies that can consistently outperform are likely to continue paying out increasing dividends well into the future. One company for investors to consider isRPM International (RPM). They have over 50 years of dividend growth, thanks to their product line of home products such as caulk and paint. RPM shares ar...

Even with markets up this year, many individual stocks have had a rough time. Some branded stocks have had a rough few years, as inflation has pushed prices higher and consumers away. For many consumer good companies in the packaged food space, the rise of new weight loss drugs has also weighed heavily. However, no trend will last forever. And changes in demand and consumer tastes can make last year’s losers relative winners. That’s why beaten down companies likePepsi (PEP) stand to recover. Shares of the beverage and snack giant are down 10 percent over the past year. But the com...

There are plenty of market strategies that investors like to employ. And often, the start of a new year is an opportunity to make a change. However, investors don’t have to wait. Given that stocks will likely see a small pullback at the start of December then have a year-end rally, having a plan in place to profit now could lead to better returns. One investment strategy is the Dogs of the Dow. That’s a concept of buying the 5 highest yielding Dow stocks at the start of the year. It’s led to outperformance over time. But investors don’t need to wait until the new year. They can ta...

After a strong year in 2022, energy prices have been volatile for 2023. Oil is back under $80, after trending over $90 in the summer. Production cuts should have led to higher prices, but the world is getting more efficient at using energy. However, while conventional energy is down, it’s not out. Dreams of a green energy revolution are taking longer to realize than initially thought. Oil stocks could still be big winners for investors in the years ahead. That’s why investors still see opportunity in energy stocks. One activist investor, Elliott Investment Management, just took a $1 ...

While the market still loves rewarding AI-based companies, the trend is an early one. It will take time to roll out. And much like the rollout of the internet, there will be big winners and losers. Fortunately, investors have other tech trends to profit from. That includes trends that are already bringing in revenues for companies today. One of the hottest such trends is cloud services. That’s been a big driver for many big tech companies. But it’s a solid performer for other players as well. That includes related companies, such as cloud security firmZscaler (ZS). The company jus...

While growth stocks have staged a strong comeback in recent weeks, income stocks remain well off their highs. The good news is that these stocks offer a historically higher yield than at most other points over the last two years. And should interest rates start to trend down next year, income stocks should trend higher to match that change in yields. That means today’s investors can get a relatively high yield, plus see some capital appreciation ahead. One income-heavy space is cell tower REITs. They’re real estate vehicles, that benefit from cell tower networks.Crown Castle Internat...

Economic trends can shift over time, and catching them near the start can lead to big profits. The strategy is to identify which sectors will benefit from that shift, and invest with the industry leaders, who are best poised to profit. One trend coming next year is a rise in business travel. It’s been slow to recover since virtually ending during the pandemic, but 2024 looks like it will be the strongest year yet for this trend. Business travel means expensed airline and hotel travel, which tends to help out airline and hotel stocks.Hilton Worldwide Holdings (HLT) is one of the large...

Market sentiment has reversed in the past month, from extreme fear to extreme greed. Some companies are making new all-time highs. But not all stocks have gone along for the ride yet. Over time, that can change. Buying companies that haven’t rallied yet can lead to better returns when the runaway market rally trades slow down. And the returns can be even better with companies posting strong earnings. Case in point?Deere & Company (DE). The agricultural equipment manufacturer beat on earnings, but sold off slightly as the company often takes a cautious approach with its future gui...