Restaurant stocks have fared relatively well the past few months on news of a Covid vaccine rollout. While that’s still an ongoing concern, the big move higher for restaurant stocks suggests a pause right now. That’s the case with MKM Partners, who has reiterated a neutral rating for coffee chainStarbucks (SBUX). Given that “sell” is a four-letter word on Wall Street, even a neutral rating suggests poor performance ahead. The rationale for the move is that same-store sales are likely to decline by mid-single-digit trades. And the recovery play in the stock market has sent shares to b...

Healthcare companies have seen renewed interest in the past year due to the Covid pandemic. But as capital flooded into the space, some companies fared better than others. Those best prepared for developing a vaccine for Covid have had excellent returns, while companies working on other pressing healthcare issues have struggled. A number of firms working on prospective drugs and treatments look set to have an excellent year as Covid recedes. That could offer traders market-beating opportunities. Case in point?Gilead Sciences (GILD). The biotech play has a number of studies and drugs ...

Investors are interested in space tourism, with a number of companies close to offering passengers low-orbit flights as a prelude to possible space travel. With that news has come a powerful rally for a number of stocks, and a few early investors are starting to lighten up their holdings. Is this a sign of a danger to come in the space? That’s what some see following Mubadala Investment’s decision to sell part of its stake inVirgin Galactic (SPCE). The sovereign wealth fund for Abu Dhabi has been a nearly investor, however, and shares of the space tourism firm are already up nearly 3...

While the pandemic created a number of unexpected challenges, it’s created a number of opportunities as well. Slashing interest rates to zero has led to an explosion in a number of areas, most notably real estate. While some markets are struggling, overall, housing prices are on the rise, and look set to continue to do so. Within that trend, an exodus of population from densely-populated cities to the suburbs is likely to increase demand for higher-end luxury-home building as well. That sounds like a potential boon forToll Brothers (TOL). The company focuses on the luxury market, pro...

Creating a vaccine in under a year is a tremendous achievement. The next difficult step? Making sure it gets out where it needs to go in a timely manner. So far, the rollout has some hitches. Vaccines sit on shelves. Some need refrigeration and have a short lifespan to be used. Potential wastage is high. That’s where company with expertise in organizing a global supply chain can help. One company is rising to the occasion with a partnership to roll out such a vaccine. The firm?Honeywell International (HON). The conglomerate has made considerable strides in recent years to improve ...

As far back as 2017, analysts were calling for the death of retail, particularly with mall-related names. As e-commerce and big box stores increased their market share, the traditional mall seems to have died out. Covid didn’t help either. Yet many of these names have moved higher in the past few months. That’s partly market optimism, and partly these stores pivoting towards online sales as well. But the trend may be playing out. The poster child for this phenomenon isUrban Outfitters (URBN). The company recently disappointed on holiday sales numbers, and shares were downgraded at JP...

One common investment theme is a reversion to the mean. That’s a fancy way of saying that stocks that have outperformed the market will often come back down. And stocks that have underperformed the market will have their time to shine. With a big rally in tech now spreading to energy and the banks, a number of stocks have still avoided making new all-time highs. One area in particular looks interesting thanks to its low expectations: The defense sector. It’s a space that never really leads the market, but has excellent long-term returns. Many defense names have underperformed in the ...

Bank stocks and financials in general slumped more than the average stock during the market selloff. A decline in economic activity means fewer new loans being made, and old loans face a rising risk of default of some sort. However, with the economy opening again and with interest rates low, investors see further profits in the banking sector. With the space starting to announce earnings next week, further bullish bets are being made. One such company isBank of America (BAC). The megabank declined heavily, but shares are still below their pre-pandemic high. But since the start of the...

Environmental, social, and governance issues, or ESG, has become a popular trend in investing. A great company can balance those needs while still providing sustainable long-term growth that rewards shareholders. Even some bigger players have made major strides along the way, including those often considered a threat to the environment or social issues. One surprising play is a name we’ve seen before—and a stock that’s still an attractive buy today. That company isWalmart (WMT). While it’s been derided on environmental grounds for the sheer footprint of its stores (and parking lots),...

Technology companies continue to push the stock market higher. Finding a bargain, even a relative one, is a tough one. That’s especially true with the chipmakers, which are firing on all cylinders. But for those companies that can provide both the hardware and software, higher profit margins are likely. That points to a possible bargain looking ahead. That’s also why it’s no surprise that Piper Sandler just upgraded one of the biggest names in the space. The company isBroadcom (AVGO). Shares may have tripled off of their March lows, but are up only 48 percent in the past year. That’s...