Even with the short-term fears hitting the economy right now, technology continues to develop at a rapid rate. And the implementation of new technologies takes years to play out, across multiple economic cycles. That means that thosewho invest in these big trends during a market downturn can earn excess returns as those trends continue to grow and play out over a period of months and years. There are many big trends today. But one that may have become overlooked is the rollout of the 5G network.Qualcomm (QCOM), a producer of wireless communications chips, is a huge player for this ma...

Every industry has a key metric that analysts are looking for. That could relate to gross profit margins, sales volume, or the spread between the cost of borrowing and the cost of lending. For the restaurant industry, sales are a key component. Higher-end chains may look at how many times a table turns over in the course of an evening, but for most players, that still translates to plain sales.Chipotle Mexican Grill (CMG) just reported that their sales have been unaffected this year by market conditions. The company saw revenue climb 16 percent year-over-year, and restaurant sales rose ...

Most stocks follow the overall market. When stocks are rising, even poorly-managed companies can go along for a rally. And when stocks are falling, even great companies can get sold off as well. Right now, only a handful of companies are performing well in today’s markets. Some of those are commodity plays, others are companies capable of growing no matter what the overall economy does. One such company is theCoca-Cola Company (KO). The beverage giant has some issues with supply chain issues, but overall, the business of selling beverages is a consistent one. The company just post...

A company can either pass on inflation to its customers, or it can’t. If a company offers a product or services with inelastic demand, chances are that company won’t feel the worst of the multi-decade-high inflation rates right now. Companies can pass on inflation through a variety of ways. One is shrinkflation, where it simply lowers its content size and keeps the price the same. Or a company may benefit from higher prices because they simply collect a percentage of assets moving through their network. That’s the case with credit card companies. These networks have been posting soli...

When it comes to the financial sector of the market, most traders look at big banks, credit card companies, and even insurance firms. But there are other parts of the sector that could benefit traders who buy while stocks are out of favor. One such area is in the asset management space. Companies that cater to providing funds and access to financial markets for individuals and other companies alike tend to trade relatively cheaply to the overall market. That could soon change, as the sector has been ongoing consolidation in recent years. One company,Franklin Resources (BEN), is curre...

Some companies are able to pass on price increases to consumers easily. Others are not, and often have to absorb the costs. A consumer goods company can likely raise prices just over the rate of inflation most of the time, and not lose too much business. Companies like a utility or telecom, which may have to wait for approval to raise prices, on the other hand, may not be so lucky. As investors continue to remain defensive right now, it’s clear that some defensive plays look more attractive than others. One such company holding up well isProcter & Gamble (PG). The company beat...

It may sound like a cliché at this point, but when there’s a gold rush, the folks selling picks and shovels tend to be the ones to make a consistent profit. No matter what the industry, the key suppliers are the ones that tend to perform the best as other companies in the space duke it out for market share. That’s why such companies could provide great returns here. With many companies still reporting supply chain issues, suppliers that can deliver can likely reward shareholders. One compelling supplier isSilvergate Capital (SI). The bank holding company has become a key integrator f...

Many sectors of the market trend towards an oligopoly, where a small number of players will dominate the market. One such example is the media industry, where six large corporations control about 90 percent of the news today. Other sectors also have this factor at work. Smaller companies end up being bought out by larger companies, and the largest companies tend to jockey for position based on their ability to grow. For example, in the banking space right now, only 5 major banks control the overwhelming amount of the industry, even though there are hundreds of players. Within that sp...

As the market goes, so do most individual stocks. That’s especially true for early-stage companies or new combinations with a limited market history. A bull market can mean a new company will tend to be valued highly, likely even higher than it’s worth. But a bear market can mean a new stock will likely be undervalued until it can prove its mettle (or until the market changes to bullish again). One new name on the market now isWarner Brothers Discovery (WBD). The merger of media assets fromAT&T (T) andDiscovery Networks (DISCA), it’s a new stock trading at a discount to other nam...

After a massive surge higher in a number of commodities as Russia invaded Ukraine, prices for many such goods have come back down a bit. But company executives remain bullish on the space, and with ongoing tensions in many parts of the world, not to mention high inflation, the commodity bull market appears here to stay. Investors who buy top commodity stocks now, even with shares near 52-week or even multi-year highs, can continue to play this trend higher. One space that looks attractive is natural gas, where prices have continued to soar. May futures recently crossed $7 per million...