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Another Share Drop Following Strong Earnings Points to a Rebound Opportunity

Another Share Drop Following Strong Earnings Points to a Rebound Opportunity

It’s a simple trading strategy: Find a company that’s performing well and just posted great quarterly earnings numbers. Then, if shares drop because the company’s guidance isn’t bullish enough, buy the dip and wait for the rebound, following the fundamentals. That’s as strategy likely to pay off well in this market throughout earnings season. One such trade has already presented itself inWalgreens Boots Alliance (WBA). The drugstore chain posted great growth, but shares got knocked down last week following earnings anyway. That partially unwound some of the firm’s gains over the past...
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Continued Upside in Value Stocks Could Reward Investors with Some Fizz From this Flat Performer

Continued Upside in Value Stocks Could Reward Investors with Some Fizz From this Flat Performer

The first half of the year saw a slowdown in tech stocks, and better relative strength in value names. While growth has started to rise in recent sessions, investors who continue to invest in both growth and value can do well in this market. Some of the best values may be in value names that have now underperformed over the past year. Any positive surprises in such a company may result in a jump higher in shares with low downside risk. One such value play isPepsiCo (PEP). The company is set to report earnings later this month, which may give the company a boost higher as some analyst...
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Stocks In This Sector Are Firing on All Cylinders, and Rewarding Shareholders

Stocks In This Sector Are Firing on All Cylinders, and Rewarding Shareholders

A number of sectors are looking strong going into the back half of the year. In one sector, costs are going down, expenditures look likely to drop, and prices remain robust, which makes for an attractive move going forward. The sector? Oil and natural gas. A number of companies are looking good as OPEC is set to meet on production, with oil potentially capable of seeing oil hit $100 per barrel. Case in pointis ConocoPhillips (COP). The energy giant just increased its share buyback by $1 billion, from $1.5 to $2.5 billion. That’s on top of the strong dividend that shares pay now of 2....
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Everyday Low Prices Come to the Prescription Drug Market

Everyday Low Prices Come to the Prescription Drug Market

Even when inflation rates weren’t rising at multi-year highs, prices for some goods have been rising far higher than the national average. One of the biggest areas with increasingly higher prices has been in drug costs. EnterWalmart (WMT). The retail giant is now offering a private-label insulin. The diabetes drug is priced at nearly 50 percent lower than brand names, potentially saving users thousands of dollars per year. The company’s ReliOn NovoLog brand of insulin vials and pens has started being filled in company pharmacies this week, and will soon be rolled out to the company’s...
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This Tech Play Joined the Trillionaire Club, and Still Has Room to Rally

This Tech Play Joined the Trillionaire Club, and Still Has Room to Rally

Big tech companies have been in the spotlight over a number of their business practices. While the jury is still proverbially out on more regulation for big tech, one judge recently threw out a lawsuit againstFacebook (FB). The lawsuit was an FTC complaint regarding a number of antitrust complaints, given the company’s anti-competitive nature. Shares of the social media firm rallied on the news, allowing the firm to hit a $1 trillion market cap for the first time. There’s likely room to run from here. The company’s dominance of social media makes it an advertising powerhouse, with st...
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It’s Still a Low-Yield World, So Buy Dividend Stocks That Do This

It’s Still a Low-Yield World, So Buy Dividend Stocks That Do This

With inflation running at annualized rates near 5 percent right now, the notion of locking up money in a 10-year government bond that pays just 1.5 percent seems ridiculous. But rather than go all the way up the risk scale, investors looking for income can find better starting  yields and even find opportunities to grow that income over time. But instead of the bond markets, those with a multi-year time horizon will likely do best with dividend growth stocks. With many companies cutting, suspending, or failing to grow their dividends in the past year, a handful have started to announ...
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Media Merger Rumors Show Value in Two Companies

Media Merger Rumors Show Value in Two Companies

The stock market has always been rife with rumors. From big players talking up positions or trying to talk down a shorted stock, it’s part of the great game. This week, merger speculation occurred thatComcast (CMCSA) was looking to merge or buy out a number of smaller players. While Wall Street analysts are trying to downplay these rumors, the possibility has been floated that the cable giant turned media powerhouse is looking to buy up eitherRoku (ROKU) orViacomCBS (VIAC). Both companies look interesting here. ViacomCBS has seen its shares drop more than 50 percent from their highs ...
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The World’s Most Successful Conglomerate Buys… Itself

The World’s Most Successful Conglomerate Buys… Itself

The pandemic saw a rapid drop in companies paying out dividends or buying back shares. That trend has now reversed. Even though most stocks are above pre-pandemic levels and have been for some time, buybacks are still moving higher. One such company that’s gotten into the buyback game in recent quarters isBerkshire Hathaway (BRK-B). The conglomerate operated by Warren Buffett has been making small purchases of its shares, with an estimated $6.4 billion buyback in the current quarter. Buffett follows the old-school view of stock buybacks, where the buy has to be attractive based on th...
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Is It Time for Short Squeeze 2.0?

Is It Time for Short Squeeze 2.0?

Possibly. The past few weeks have seenAMC Entertainment (AMC) raise billions of dollars in capital from selling shares at market, and retiring debt. And earlier this week,GameStop (GME) announced it completed a 5-million share sale as well. By raising this capital, these companies are now well-funded for future expansions. And by paying off debt, they improve their cash flows by avoiding interest payments as well. That doesn’t even get into the possibility of a short squeeze. While the market is now reporting GameStop as having a short interest of only 20 percent of shares, compared ...
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This Tech Infrastructure Play Offers Growth and Value

This Tech Infrastructure Play Offers Growth and Value

With traders uncertain as to the market’s next move, a great way to find opportunities is to look for the best values in each sector. For big tech, only a few companies look attractive now. That’s because the market rally of the past year has led to a high valuation in terms of earnings, sales, and other traditional measures. However, some values remain, particularly in a company that largely sat out the rally and can move higher. The big tech play?Cisco Systems (CSCO). The maker of modems and routers has been a key part of digital infrastructure for decades. Shares underperformed th...
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