For Patient Investors, Dividends May Offset A Slow-Moving Summer

The Wall Street saying “Sell in May and go away,” isn’t about getting out of the market. Rather, it’s a warning that the market’s returns in the middle few months of the year tend to slow. But even through the summer, it makes sense to stay invested. It’s only September and October that are historically challenging for investors. With a summer slowdown the seasonal norm, investors can find opportunities, particularly with dividend-paying stocks. While dividends haven’t gotten as much attention in the ...
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Smaller Players May Outperform Leaders as A “Catch-Up” Trade

In any industry, there’s one leader. Even if there are two big players that seemingly duke it out, one of them is still king of the hill. In the tech space, today’s leaders can become tomorrow’s laggards. That also means that when a leading stock is soaring, smaller players may be more attractive. Those smaller players could win from a “catch-up” trade when the leader’s momentum slows down. Right now, Advanced Micro Devices (AMD) could be the catch-up trade against industry giant ...
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This Industry Laggard May Get a Strong Shakeup

Defensive stocks tend to hold up well in just about any market. This recent market rally has been an exception. Tech stocks have handily beaten other sectors. And high interest rates have made dividend-paying defensive stocks look less attractive. But the businesses behind those stocks aren’t playing defense. By creating new products and expanding operations, they can continue to grow, and provide investors with great long-term returns. Buying these companies today could fare well when the tech trade slows down. One such ...
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Profit With the Shift to Cost-Conscious Consumers

Consumer spending has been declining. That bodes poorly for most retail stocks from here. However, not all retail stocks are created equal. Some retailers can thrive in a challenging environment. Specifically, companies that cater to cost-conscious consumers. Even with tight budgets, those looking for a deal and seeing price tags with steep discounts on them will likely continue to flock to companies that continue to have massive deals. One company that could hold up well amid slowing consumer spending is TJX (TJX) ...
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Inflation-Busting Companies May Get Rewarded With Bigger Market Shares

In any industry, market share is a key metric. How much of the total market one company gets can result in bigger profits, and also open up opportunities to take advantage of a larger size. Investors remain wary about inflation and rising costs. Those costs are usually seen when making a purchase, even if inflation has worked its way through the entire system. Retail companies are working on ways to lower prices and knock down inflation. One way is by finding products ...
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Look for Market-Beating Profits In Great Companies Getting a Shake Up

While the market trends higher over time, some companies can be out of favor with the market. If they’re capable of finding ways to improve their business and profitability, they’ll likely have a catch-up rally. Such rallies can beat the overall market returns handily over time. And they’re the kind of move that can be common in large, established companies that tend to otherwise perform as slow-moving investments. One way to find these opportunities is to follow activist investors. For instance, right ...
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Delays Only Mean Bigger Profits Later for a Company Selling Quality Products

There’s a saying in the video game industry that a delayed game can become good. But a game that’s rushed out with flaws will never be great. Some video game companies have taken that philosophy to heart, even when it means delaying an anticipated release. That can be tough for some studios, since they have to develop the game before they can sell it and generate revenue. For larger studios working with multiple properties, it’s somewhat easier. For instance, Take-Two Interactive Software ...
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This Stealth AI Play Will Keep Trending Higher

The AI rally of the past 18 months has largely focused on big-tech names and semiconductor manufacturers. But AI’s applications can encompass and benefit every company, no matter what industry it’s in. That’s leading to a number of stealth AI plays. These are companies that will benefit from the rise of this technology and its rollout in the years ahead. Investors who buy into these companies can see market-beating returns in the years ahead. One such company is Dell Technologies (DELL). Best ...
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