When an industry is new, it may result in dozens or even hundreds of companies creating a product or service. As it matures, an industry will tend to consolidate into just a handful of players. The classic example of this is the automotive industry, where a number of brands either went bankrupt, or were absorbed into what are now known as the “big three.” Other industries are consolidating now. Finding the best values out there can mean getting into companies poised to get bought out as the number of total players shrinks. One area that’s seen a big increase in competitors in the pas...

Many companies have been hit hard by the pandemic as they’ve failed to pivot to business strategies better suited to events. However, companies that have made the pivot have been faring better. Some are more profitable as a result, while some are still building out the infrastructure to succeed. That’s leading to a number of companies showing growth now, or in future quarters, that may be being discounted by today’s fearful markets… creating a solid long-term buying opportunity. One company still in transition isOracle (ORCL). The software and database giant has been shifting towards...

Some companies are simple, offering only one product or service. Others have many parts. And in bear markets, complicated companies may end up trading for less than the sum of their parts. That can attract value investors, as well as activist investors. Investors who can determine the true value of a company with a large number of different moving parts can potentially see big returns when there’s a divestment, successful activist investment, or even just a market turnaround. One company that may be worth more than its parts right now isThe Walt Disney Company (DIS). The entertainmen...

Valuations on tech stocks have been hit hard in the past year. That’s because a number of companies have shown that their growth projects were unable to handle a slowing economy. Other tech firms have had no such problems, however, even if these positive developments haven’t been reflected in their stock price. One way to look at how these companies are performing is by looking at how their billables are changing now. If a company is continuing to grow its customer base, or its revenue per customer, prices should go up in time. One company continuing to grow its customer base now ...

A few major themes have been at play over the past year. While tech stocks have largely sold off thanks to a decline in investors willing to take on risks, a shortage in the semiconductor industry has created a unique situation. These companies are poised for their best growth in years, yet are also trading at their best valuation in years. Investors who accumulate shares of these leaders now can benefit when that price trend changes. Among the semiconductor giants, there’s some jockeying between the big players in terms of new offerings and features. With what looks like the best co...

This year has been challenging for investors. A slowing economy and high inflation are creating a poor outlook for markets. Yet buying during challenging moments can be a solid time to invest. That’s particularly true when investors sell as soon as skies are clear. Many companies are facing challenges right now. But companies with a long operating history of succeeding in different environments should get through today’s troubles with ease… although it may take some time. One company struggling now isTarget (TGT). The “cheap chic” retailer has been cutting prices to clear inventory a...

Typically, it’s taken two quarters of negative GDP growth to officially mark a recession. By the time that’s announced, some short or shallow recessions are already over. We’ve seen two negative quarters so far this year, but many are looking to change the definition given the strong job market and other factors. As the definition of a recession seems to be changing, it might be a good idea to rethink the idea of a recession-resistant company. Those are typically firms that engage in safe, highly-regulated sectors. But some companies that aren’t in heavily regulated industries seem t...

The stock market trended down in the first half of the year. Then, starting in late June, investors enjoyed a summer rally. Given the continuing strength in the economy and high inflation numbers, it’s likely that stocks will trend down as interest rates continue to rise. However, some assets can see a move higher here. That’s specifically true with assets that moved higher in the first half of the year, then took a breather when stocks rallied. One standout asset to perform well as markets decline is oil. Crude prices spiked in the spring to nearly $120 per barrel, and today are aro...

Many companies are coming off of strong earnings reports from the past year. Those numbers were influenced by the prior year, where pandemic shutdowns made things look horrific. Now, with the added challenge of a slowing economy and high inflation, investors need to weed through those companies likely to lose market share amid current market conditions and those that can eke out a larger stake in their sector. As the retail space looks to condense, a few big box stores look like they’ll grab more market share. One potential big winner isCostco (COST). The warehouse club mostly breaks...

There’s an old saying that the Chinese character for “crisis” can also be interpreted as “opportunity.” That’s often the case in the stock market, where a big selloff can lead investors to years of profits relatively quickly when the fears fade and prices rebound. Right now, some tech stocks are getting hit hard on news that the US government is limiting chip exports to China. That can have an impact on a number of companies, but two look to be hit the hardest. One of those chipmakerAdvanced Micro Devices (AMD). AMD notes that the ban doesn’t appear to impact their current exports, y...