Banks are an out of favor part of the market right now. With interest rates back at zero, the profits from lending are lower as well. And while some big banks have reported solid earnings thanks to trading and investment banking, that can be an inconsistent source of revenue. Nevertheless, one fund that describes itself as contrarian recently added shares of a big bank to their holdings, after taking profits in gold mining companies. The bank?Wells Fargo (WFC). The contrarian fund Hexavest, based out of Canada, is partially owned by money management firm Eaton Vance. The buy comes as...

With retail numbers beating expectations on Friday, a number of analysts were quick to upgrade the sector. The retail analyst at Cowen & Co., however, sees that many retailers have already been trending higher before these numbers were reported. Even so, many retailers, particularly big-box plays, are likely to continue heading higher. Those stores should benefit from the trend of consumers making their buys in as few locations as possible during the pandemic. Cowen’s analysis specifically looks atWal-Mart (WMT),Target (TGT), andCostco (COST). All three big-box players offer groc...

Some of the top-performing stocks of the past year have a lot in common. Many are known as “big tech” names due to their size. And they’ve performed well thanks to the fact that they’re been well-positioned to increase market share and profitability during the pandemic. These companies are also wildly overvalued by any traditional measure, whether by earnings, sales, or asset value. But one manager sees some big tech names heading even higher. London-based fund manager ValuAnalysis see the trio ofTesla Motors (TSLA),Amazon (AMZN), andNvidia (NVDA) as a group that’s capable of growing...

J.P. Morgan just updated an electric vehicle company. Not only that, but the investment bank gave a price target more than double where shares were trading at the time. That’s a bullish call, and a justified one. That’s because the bank expects the electric vehicle market to continue growing substantially, possibly as much as four times higher in some markets. And, no, the company isn’t Tesla Motors. The company isNIO (NIO), the Chinese play. Although the company isn’t profitable yet and shares trade at a big multiple of sales relative to other automakers, it could be a big winner in...

Deutsche Bank sees improving trends for DRAM memory. That’s one sector of the tech space that has been held back lately. The push for cloud services has reduced demand for mobile device memory chips, but now that cycle is turning. While there’s some small risk of inventory accumulation leading overall, the rising demand strength in the space, particularly with server demand, could lead to higher prices for DRAM related companies. Deutsche specifically sees value inMicron (MU). Shares were upgraded to buy from hold, and the price target was raised from $51 to $60. Shares rose 3.5 perc...

Citigroup recently upgraded one major consumer goods play following a strong earnings beat. Thanks to stay-at-home trends, this company has fared relatively well, even better than peers. That’s led to the view that this company will continue to show strong growth into 2021. Even better, this company lags competitors in terms of operating margins. As a result, shares look likely to offer multiple expansion as well, which could lead to even bigger returns. The company?PepsiCo (PEP). Best known as the second-largest player in the soft-drink space, the company’s real success in recent ye...

Industrial companies have been out of favor plays in this market. Some companies have fared even worse, having struggled even while the economy was looking rosy. One of the most unloved names in the space just got a major upgrade with a potential 50 percent move higher in the next year. In fact, an analyst at Goldman Sachs just called this company the “ultimate self-help, vaccine-leverage story,” in the sector. That company?General Electric (GE). GE has spent the last two years with a new CEO shedding non-industrial divisions, and paying down debt. That restructuring was paying off. ...

In spite of a recession in 2020, consumer spending has held up well… at least in grocery stores and other essential retailers. That’s been borne out by the market-beating returns in many big-box stores, as specialty retailers like clothing companies have been hard-hit. That’s a trend likely to continue, and a few companies are working to perform even better going forward. That’s the view of BMO, where the portfolio manager of the company’s Low Volatility Equity Fund sees many big consumer-facing stocks continuing to perform well. The list includes a litany of familiar names such as C...

Gold has been a top-performing asset in 2020, far outpacing stocks. On average, gold mining companies have done even better as well. While the metal has pulled back a bit after topping $2,000 earlier this year, it still appears poised for further gains. That’s likely true ahead of the election as well. That’s the reasoning by the gold analyst at MBMG Group. The metal will likely rally on inflationary fears as further stimulus programs are unleashed on the economy. And election uncertainty will likely shore up the price of gold as a hedge.Action to take: Among the gold mining companie...

Even with the economic struggles this year, the holiday season is rapidly approaching. And with the rise of e-commerce trends, chances are a few companies stand to substantially benefit from the trend. Retailers are already responding to the season by hiring seasonal workers, many of whom will work in fulfillment centers rather than in brick and mortar stores. The biggest winners? The shipping companies, who expect to see volumes rise by 1 to 1.5 percent this year. The two biggest shipping companies,United Parcel Service (UPS) andFedEx (FDX) are the most likely winners, according to ...