Some companies are starting to struggle right now amid the costs of rising interest rates. Other companies are faring much better, as there are strong long-term trends behind them that can help them move forward in time. Even though some companies are warning on short-term pain, those who see big potential moves ahead could still deliver great returns for patient investors amid this latest market selloff. For instance, chipmakerMicron (MU) is reporting that business is in a slump. And that their next earnings report will be terrible. Yet the company’s memory chips can give it a pr...

The market’s selloff in the past week has been extreme in its speed and severity. But investors in some sectors have been hit harder than others. Knowing where to look for winning long-term trends can lead to better performance during a market selloff. It may not always mean making a profit, but it could mean losing less. And over time, as stocks trend back higher, it could mean outperforming the market. Before the recent selloff, sports gambling stocks were riding high. They’ve since pulled back along with everything else. But industry leaderDraftKings (DKNG) just got an analyst upg...

The past few weeks have seen investors sour on technology stocks. However, it’s normal in any market for a sector that’s been the runaway winner to take a breather. When that happens, other sectors tend to shine. With some fear in the markets, defensive areas such as utilities and consumer goods have been holding up. But one sector is also performing well that looks bullish for the economy next year. That is the commodity space. The headline winner has been oil prices, but other commodities are performing strongly also. Analysts just boostedCleveland Cliffs (CLF), a maker of iron ore...

On Wall Street, traders are often attracted to “turnaround” stocks. These are companies that have fallen on hard times. But, they have a plan to right what went wrong. That sounds well, and can often attract investors in a stock that looks like a value. But not all turnaround stocks are able to turn things around. That’s why investors should wait for signs a turnaround is succeeding. It may cost some profits, but it increases the chances of keeping a profit. Regional bankTruist Financial (TFC) has suffered with other bank stocks this year. And since its merger, it’s struggled. But th...

No matter how you slice it, companies need to make a profit. That means they need to make money even after all the costs of business. So when those costs rise, so do the prices consumers pay. It can also mean changing returns for investors. For instance, investors in a franchise need to have deep pockets to invest. Most franchise companies require an up-front financial commitment. Increasing those fees is a sign of higher profitability for the management company. After 30 years without an increase, restaurant giantMcDonald’s (MCD) is raising fees for its franchisees. That means th...

When it comes to shopping at a store, consumers love a deal. Yet when those same consumers are shown a declining stock price, their first instinct is to avoid or sell, not buy. Investors who can look past that trend and look to buy when a stock is on sale can get a good deal. And a sale typically won’t last long on a great, industry-leading company. Taking advantage of those deals can lead to great investment returns over time. One deal today isGeneral Mills (GIS). The cereal producer is down to $65 today from a high of $90 in May. The company also managed to beat earnings in an envi...

Markets tend to react quickly to news. However, markets don’t just react. They tend to overreact. When there’s good news, the price of a company can get pushed far higher than it should. And when bad news hits, shares tend to sell off more than they should. Patient investors can use this to their advantage. They can buy when there’s bad news surrounding a company. And then take some profits when good news sends shares higher than they would otherwise go. Right now, a management change at payment processing companyBlock (SQ), have pushed shares close to their 52-week low. Co-founder J...

When an industry is growing, investors may tend to go for the company that can boast the largest growth, or is simply the biggest player. That provides the perceived safety of a well-known name that other investors know about, as well as the best liquidity for getting out of a trade. However, that leaves investors with opportunities to profit from companies that may not be as large or well known, but can still post a massive profit. In the defense industry, the space has consolidated significantly over the past few decades. But there’s still room for further consolidation. Until then...

During an investment boom, some companies tend to soar relative to their peers. That’s because the market perceives them as having the best advantage. However, for a big enough trend, multiple companies can become winners. That means investors have a second shot at investing in a big trend by following companies that can still benefit from that trend. And investors may have better returns buying these companies over the industry leader after it’s already had a big rally. For instance, in the AI chip space, the big winner so far has beenNvidia (NVDA). But other chipmakers are rushing ...

Investors looking for market-beating gains can find them by buying and holding great companies over the long term. The trick is when to buy a great company. If a company is well run, leads its industry, and is profitable, getting a bargain is rare. But sometimes a share price might get knocked down a bit on some bad news. Even if it’s not a full-blown bear market, it could provide a short-term entry point for some quick profits on a turnaround. That could be the case withVisa (V). The credit card giant dropped last week, due to the technical issue of a possible exchange offer. Sha...