Investors are more than willing to place trades outside their comfort zone in a bull market. But in a slowing economy, they tend to gravitate towards the tried and true. That explains the relative outperformance of value stocks in a flat or sideways market. Investors do the same thing as consumers. They cut back on new products and services, and stick with what’s tried and true. That’s why there are so many brands out there – including those at a reasonable price. The most recent economic data shows a slowdown in restaurant spending. But even in a slow economy, going out to dine can ...

Market volatility is back. That means that companies can expect their share price to see sizeable swings by the day. As markets get turbulent, investors should look for companies that can continue to grow no matter what the economy does. Many gravitate towards income stocks. But a high payout along isn’t enough. Stability, rather than the potential for big growth, may win out in the market in the months ahead. That’s where a company likeHoneywell International (HON) comes into play. As an industrial conglomerate, Honeywell has a number of businesses that tend to be slow and steady. S...

Market sentiment has turned on a dime, as fears about the solvency of several banks has surged. In this flight to quality, investors are moving into assets such as Treasury bonds and gold. However, some stocks could be a better option here. That’s because some companies will continue to grow their income. And that can be used to buy back shares, pay out a growing dividend, or otherwise reward those with the willingness to buy in a fearful market. One of the top cash-generating stocks isMicrosoft (MSFT). The company is a tech conglomerate, operating software services, web hosting, and...

Most companies tend to find that they have their best profitability in a narrow niche. But over time, competition or changing consumer tastes can eat away at that niche. Many firms have found that expanding into other roles can be a long-term winner. Big tech companies in particular have been good about expanding beyond just one piece of hardware or software, and into creating a suite of experiences that can bring back customers time and time again. One company could become the next to make a similar move:Roblox (RBLX). Best known as a video game platform, it has the potential to mov...

There are many things that companies can control. But they can’t control how the market will react to one of their quarterly earnings reports. A company may have great earnings, but see shares sell off on a lower outlook, or because revenues are off. However, a company isn’t just one quarterly report. And a company that can continue to improve its earnings over time will see its share prices rise, even if that process takes time to play out. Database software companyOracle (ORCL) reported better-than-expected earnings, with per-share earnings hitting $1.22, above expectations of $1.2...

Tech layoffs have dominated headlines since the start of the year. However, many of these companies vastly increased their hiring during the pandemic, and may have overshot to the upside. So while layoffs and workforce reductions now sound painful, it may allow companies to lower their spending and lead to bigger profits. That could be a boon to investors now, especially given how much share prices have declined for big-name tech stocks. That advantage could be even further compounded by companies buying back shares at a steep discount to their old highs. One such company isMeta P...

Dividend-paying companies have a few ways of delivering cash to shareholders. They can borrow the money, which increases debt and debt payments. They can issue shares, which dilutes shareholders. Neither of those strategies can be done for long. The best way is to grow their earnings and cash flow. This allows for companies to pay out a growing amount of that cash flow to the owners of the company – the shareholders. It’s why investors should look for dividend-growing companies. One company just doubled its dividend thanks to strong earnings growth and rising profit margins. It’sDick...

Some industries are cyclical, with big booms and busts. Other industries tend to be steadier. Which wins out over time? It depends on whether you get in at a good price – or wait to jump in once a trade idea has already gotten hot. Investors can trade while also using bear markets to build up positions in steady players. This helps take advantage of the market’s long-term returns, without being beholden to short-term trades succeeding 100 percent of the time. One of the top places to invest with the long-term in mind is the insurance industry. It’s a sector that usually doesn’t lead ...

While a share of stock is a fraction of a company, its valuation can vary wildly. Intense fear or greed can lead to big swings in valuation, often quickly. Over time, however, growing earnings and revenue tend to be a reliable indicator of a company’s performance. But if you combine a company with improving operational results that’s also seeing interest in its shares exploding higher, you may be on track to profit from a big trend. That’s how investors feel aboutC3.ai (AI). The artificial intelligence software provider has been a big winner this year, more than doubling. And the sto...

The economy continues to send mixed signals. By most conventional measures, things have slowed considerably. That’s seen in everything from housing to the job market. But things were also running red hot before, so the full picture still looks strong. At the corporate level, companies are largely cutting back. But in some areas, they’re continuing to invest now. One space where that’s happening is in IT spending. That’s a boon for companies that cater to that need. Companies that provide IT services should continue to thrive right now, as the digitization trends of the past few years...