The stock market loves it when a company makes some kind of positive change. If a company announces a dividend or buyback program, shares will often rally heavily on the news. Another event that’s seen a jump in shares in recent years has been the announcement of a stock split. While it doesn’t change the total value of a company, it does change how many share investors have, and the price per share. And as long as the price is low, there’s a reasoning that investors will bid it higher. The most recent company to announce such a move isGameStop (GME). The video game marketplace is...

There are many investment strategies that best work in a market that’s moving in a direction, whether up or down. In sideways markets, other strategies, often related to income, tend to perform better. While the market is likely in a decline, but is prone to some strong rallies along the way, only a few strategies offer a solid prospective return. One such strategy is arbitrage. It’s best known for trying to find immediate price differences in an asset across markets. However, for a company that’s about to be acquired via a merger or buyout, investors can potentially earn an excellen...

Financial stocks tend to be sensitive and even leveraged to changes in the economy. That’s been the case with a number of financial stocks so far this year. One niche in this space that has been hit the hardest has been in asset managers. These companies have been declining from the one-two punch of a slowing economy, and a decline in asset values as well. These stocks are now down about twice as much as the S&P 500 index. On an economic rebound, however, they stand to be big winners. While it may not be time to go all-in yet, buyers who start adding to these companies in the com...

Analysts tend to run behind market events. Companies tend to see upgrades after a big move higher. And when a stock is falling, the downgrades will come in too late to protect investors from most of the drop. The same is true with companies reporting their outlook. When things look good, companies tend to overestimate their future returns. When markets sour, they tend to significantly underrate their future returns. Case in point?Micron Technology (MU). The memory maker is reporting a slowdown in tech hardware spending, months after a slowdown in the economy has already been under wa...

The stock market just had its worst start to a year since 1970. That trend looks likely to continue, as interest rates need to rise further to slow down inflation. Most companies are down, with some tech stocks notching losses of as much as 70 percent so far this year. But a few companies have managed to hold steady, or even deliver a slight gain. They may continue to be relative leaders in this market for a few more months yet. One winner here isAT&T (T). Shares are up about 5 percent since the start of the year, and that’s even after a drop for the company’s spinoff of its medi...

Some industries are more concentrated than others. While hundreds of bank stocks flourish, for instance, there are only a handful of companies with the overwhelming share of the soft drink market. Markets with an oligopoly, or even a duopoly, tend to become commonplace after an industry consolidates. That also makes those stocks solid investment choices. While a mature and slow-growth industry may not seem like an exciting play, having just a few players keeps those companies profitable. One such area is in packaged spices and condiments. Here, a few companies dominate the space. The...

Investors loved growth stocks during the stock market rally. With stocks now in a downtrend, investors are now looking less towards growth and now towards safety. One way investors can find safety is by focusing on companies that pay dividends. However, no dividend is alike. Income investors need to look at a stock’s payout ratio, to ensure a company isn’t paying out more than it’s earning. Another factor to consider is dividend growth. Over time, it’s more rewarding to own companies that grow their dividends than to buy a high-yielding stock with little or no dividend growth. The...

Some industries and companies are heavily dependent on economic cycles. Other trends are far more recession-resistant. Investors looking to profit now can stay on the defensive by investing in companies that can maintain their standing during an economic downturn. Most investors focus on areas like utilities, telecoms, and consumer goods to profit from the stock market. But there are other places as well where investors can likely see excellent long-term returns investing now. One recession-resistant area with growing spending is in pet products. Analysts have noted that spending in ...

Financial markets and stocks are in disarray. While companies like banks are down due to interest rate fears, a select number of companies related to financial exchanges are also being hard hit – even as trading volume has been exploding. These companies tend to be consistently and largely profitable. So any short-term decline due to market conditions will tend to unwind over time, leading to big returns for patient investors who buy during market fears. That’s true of both traditional assets and newer assets like cryptocurrencies. Now, with cryptocurrency markets in a massive dec...

The sharp rise in mortgage rates in the past year has caused the cost of financing a home to nearly double. Most investors are expecting a slowdown in home sales, as well as a price drop, as long as mortgage rates stay so high. However, while sales may slow down, homeowners will still need to maintain their homes and continue to repair their properties. That bodes well for beaten-down home improvement retailers. These companies are near 52-week lows, yet continues to show strong same-store sales. That trend has helped them continue to earn analyst praise in today’s markets. Among ...