Earnings season in a bear market can turn even a blue-chip stock into what looks like a penny stock with big moves up or down – usually down. But patient investors who buy an industry-leading company during a down market can get a great value. Patient investors can earn a great return buying values and waiting for the market to recover. And, as that happens, traders tend to be more forgiving in future quarters for a company during bull markets. The recent earnings ofThe Walt Disney Company (DIS) sent shares to a new 52-week low. The entertainment giant reported a slowdown in its stre...

Many investors have made money by buying the dip and being greedy while others are fearful. In today’s fearful markets, there are plenty of bargains. But some companies may continue to struggle right now, leading their share price lower. Buying companies who have seen their stock price increase this year may be a better way to go. Those companies that can deliver now can likely continue higher no matter what market conditions develop. Playing to that momentum could fare well. For instance, life insurance companyMetlife (MET) is up 17 percent in the past year, essentially the mirror i...

Some companies are cyclical, seeing customers appear in good times and disappear in bad. Those customers can be individuals, or entities like corporations or governments. Companies that are building out corporate or government contracts right now may not fully book that revenue for some time. But when they do, if markets are looking up, they’ll be rewarded for solid long-term decisions being made today. That’s why investors should find companies ramping up their customer base in the current challenging markets. One company making those moves now isPalantir Technologies (PLTR). The bi...

During a boom, companies tend to need more employees or services immediately. So they pay market rates… and often end up overbuilding when the boom comes to an end. Many companies have already started laying off employees, or have held off on hiring new ones. If a company can find a way to do the same level of business (or more) with fewer employees, those lower expenses can lead to a bigger profit. That’s true even if the underlying business isn’t growing. One company aggressively cutting expenses right now isCoinbase Global (COIN). The cryptocurrency brokerage reported a 22 percent...

In finance, there’s a concept called elasticity. It shows that some goods won’t see a big drop in demand, even if there’s a big change in price. This can be seen with energy prices, as people have to heat their home and drive to and from work. It’s also plain to see in the food space, as people have to eat. Companies that cater to these demands tend to be steadily profitable, or even improve amid inflation. One such example isKellogg (K). The maker of cereals and other shelf-stable foods has been able to raise prices on consumers to beat inflation. And they’re also seeing organic net...

Earnings season can be a tricky time. A company can report great earnings. But if they warn on guidance, shares may sell off big time. Or, if a company has poor earnings, shares may move higher as things weren’t as bad as the market expected. In today’s market, most news is likely to lead to a discount in shares, whether good or bad. But that may be creating a solid long-term setup for investors. One company looking interesting now isParamount Global (PARA). Shares are down nearly 50 percent in the past year. But as an oligopoly play in the entertainment space, shares look attractive...

Price and value aren’t the same thing. A low-priced stock could be wildly overvalued relative to the business’ prospects. And a high-priced stock could still be pennies on the dollar for a great company ahead of a growth kick. In today’s market, the fast drop in price, combined with fear and uncertainty, are creating a number of values for long term investors today… even in once high-flying sectors like tech. One such example isQualcomm (QCOM). The wireless communications chip manufacturer dominates for 5G and mobile processors. But even with the rollout of the 5G network, shares are...

Markets go up more often than they go down. But investors often forget when in the middle of a bear market. One way to break through the fear is to look at companies that are planning for a bright future now. At a time when many firms are scaling back, those looking forward are likely to best capitalize on the long-term return to rising markets and a booming economy. One example is withOracle (ORCL). The database giant has embraced cloud services and applications in recent years. That’s now leading to new growth, and allowing it to take on bigger player in the space. As a result, ...

Some stocks deliver slow and steady returns over time that can compound out into a phenomenal profit. Others can be volatile – but that volatility allows investors to earn even more over time, provided they don’t get scared out of a trade. Right now, a number of companies have been taking big hits following earnings. And while it’s scary, separating the companies likely to best rebound from this slowing economy will lead to big returns. Case in point?Amazon (AMZN). The retailing giant has expanded in a number of ways over the years. Last week’s earnings report caused the stock to div...

Sectors tend to start out with an explosion of activity, then consolidate into a few big names over time. That’s played out in everything from automakers to the media. As this happens, surviving companies tend to settle into making steady profits. And when there are just a handful of players, one will typically stand out as the industry leader. This company will fare slightly better than its peers for various reasons. One consolidated sector worth buying for the long term is the credit card space. It’s a key part of financial transactions and economic activity. And there are only a h...