The stock market has quickly retraced nearly half of its recent losses over the past few months. While some might see that as the start of a new bull market, others see the pattern of a bear market rally playing out. To trade these kinds of markets, investors can focus on dividend paying stocks, or on stocks that operate in defensive industries that hold up even when the economy remains slow. In this current economy, auto parts suppliers and retailers have held up somewhat well. The combination of supply chain issues impacting new car production and demand for cars has been a boon fo...

Investors always have to contend with uncertainty. And while the world has changed thanks to the pandemic, it’s clear that some trends are heading back to pre-pandemic ways. One such way is with travel. Both air travel numbers and other data indicate that consumers still want to travel, even with the risks involved. Nevertheless, short-term economic fears are now potentially weighing on that recovery. But such fears often prove unfounded in time. For now, that may be creating a buying opportunity. One such opportunity is with lodging companies. Hotel chains are continuing to post str...

Some companies are slow and steady, like utility and telecom companies. But many, if not most, are cyclical. They tend to move higher with the economy, and lower when the economy slows. That can include everything from cars to entertainment services. It can also include many business service companies as well. One of the first things a company will cut back on during a slowdown is advertising. Over the long term, that may cost market share and customers. One company seeing a hit from uncertainty in the advertising market isRoku (ROKU). The TV streaming platform just sank by nearly 25...

Every dollar held by a consumer acts like a vote. And sometimes, consumers vote with their feet. The past few years has seen an acceleration to a trend that involves millions of Americans moving. For the most part, that’s meant a shift from more northern and colder climates to warmer ones. And a move from housing markets far above the national average to ones that are closer to the average, or even under it. The move towards the Gulf coast states, particularly Florida, could bode well for a type of company that usually isn’t known for its growth: Utilities. That sector has held up...

In a bull market, companies will try all sorts of new ways to compete with each other. When times get tougher, companies that are quick to cut back to the basics are the most likely to keep their losses to a minimum. That’s especially true as smaller or more leveraged players end up dealing with steep losses or even bankruptcy. Companies that can simplify and streamline operations should be more focused and have higher profit margins as the market turns around. One company that tends to expand its customer options during goods times isMcDonald’s (MCD). The fast-food giant is now scal...

Earnings season is coming in mixed. It often does. In a bull market, a few misses can be written off. In a bear market… companies that miss tend to get punished. While that creates a potential buying opportunity, companies that miss in multiple quarters could be in for some rough performance. Traders looking for companies moving higher ahead of the rest of the market should focus on companies beating on earnings now. One such play isT-Mobile US (TMUS). The wireless telecom play just reported its most recent earnings. It beat expectations, and raised their forecast for the upcoming qu...

The current earnings season is showing which companies can fare well with high inflation right now, and which companies are struggling. While a company may report far different earnings than average right now, companies with high profit margins will likely continue to grow in time. That’s because these companies can either reinvest at a high rate of return, or give capital back to shareholders via dividends or share buybacks. One company faring well right now and posting a strong profit margin isVisa (V). The company reported solid earnings, thanks to a rebound in travel. The company...

Traders have largely priced in a recession, with slowing growth all but certain for some time to come. The slowdown is being done in order to combat high inflation. Part of that is to lower prices. That could cause some big changes for retail companies. Investors already sawWalmart (WMT) warn that they would miss their full-year profit target, as a number of items would have to go on sale in order for the company to clear its excess inventory. While that’s tough on shares, Walmart will survive, and likely even thrive in a downturn as investors ship at lower-end outlets. In fact, the ...

The past few years has been great for some sectors. For others, it’s been tough. The restaurant space has had to rapidly change to pandemic protocols, a rise in takeout orders, and increased outdoor dining, to say nothing about supply chain issues. However, many of these companies have been holding up well. In a potentially slowing economy, though, those offering fares with lower-priced items will likely hold up the best – and may even grow in today’s environment. That’s potentially good news forYum! Brands (YUM). The owner of KFC and Taco Bell, among others, is just barely down over...

It’s still the early stages for earnings season. But we’ve seen companies perform above expectations, even as overall performance has started to slow in the past year. With some big tech names about to report, now may be the time to look at adding these stocks. While they’ve typically been growth names, in a market slowdown, smaller companies may not be able to grow. And the big established names could end up with a larger market share as a result. One company reporting later this week isAmazon (AMZN). The retailer doesn’t always make money, but it does focus on growing in size overa...