12480

Time to Buy a “Blood in the Streets” Play

The stock market pullback is getting ugly. With pullbacks deepening into corrections, investors want to know where to go for the best returns on the market’s next rebound. Historically, a handful of companies have used these dire and fearful market conditions to set themselves up for big profits when the outlook is much brighter. A select group of investment managers in particular tend to have a great track record for navigating tough markets. One such player isBlackstone (BX). The asset manager’s expertise ...
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12472

Buybacks Make This Value Play a Potential Winner on a Market Rebound

Share buybacks can add a lot of value for investors, provided that management only buys when shares look undervalued rather than indiscriminately buying at any price. Since share buybacks can increase earnings per share, even when a company doesn’t increase earnings. As a result, many companies have embraced share buybacks, but only a handful have been able to responsibly buy back shares and avoid the temptation of overpaying just to keep a share price high. One company that’s done buybacks right isBerkshire ...
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12465

A Higher-Margin Twist on Rising Commodities Looks Attractive Here

Commodities are taking off as investor interest soars. All sorts of raw goods from metals to agricultural to energy commodities have been rising. But investors who look beyond the raw commodities to more advanced materials could be ahead of the curve on this move. That’s because materials companies tend to be good about raising prices to stay ahead of commodity moves. And they tend to have a built-in profit margin that keeps them going when times are lean. That’s why specialty material ...
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12458

The Best Way to Profit in This Market Is with a Solid Offense

Traders have been defensive lately. Capital has been rushing into commodity stocks amid high inflation, and companies like telecoms and utilities have been stronger performers rather than risk-on tech names. However, in this market, even a tech company that’s posting unexpectedly strong growth can be a big winner here. And returns can be even better with shares knocked down so much from their highs. One clear example isCrowdStrike (CRWD). The security software provider seems like the perfect play for today’s digitized world ...
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12448

Stick With Companies Capable of Growing with Inflation

While the market has been contending with the latest geopolitical headlines in the short-term, longer-term trends are still in play. That means high levels of inflation, whose growth may moderate later this year, but will likely still remain high. As one of the largest trends, investors should look at investing in companies that are capable of growing alongside inflation, rather than losing profit margin as customers start to look for cheaper bargains elsewhere. One area that should fare well is in payment ...
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12441

Strong Guidance Makes this Pandemic-Shunned Company Worth a Buy Amid this Market Turmoil

Where the stock market goes on a given day, so do most stocks. Those that buck the trend usually have a specific reason to do so. Usually, strong earnings and guidance will allow a company to rise even if the rest of the market is dropping. In today’s market, where the moves have been much more volatile, that hasn’t always been the case. That’s setting the stage for a bigger rally for any company posting strong numbers now. One example isUber (UBER) ...
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12436

This Infrastructure Trend Points to the Best Profits from Ongoing Digital Transformation

Current headlines are bearish, from rising interest rates to a potential global conflict following Russia’s invasion of Ukraine. However, dour headlines often pop up, but longer-term trends underway point to a better, not worse, future. That’s especially true with tech. The past decade has seen an explosion in digital transformation, and that trend looks likely to continue, even with the latest headlines today. No matter how those trends play out, however, they’ll need infrastructure to support them. The biggest piece of infrastructure ...
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12428

To Find Growth Bargains, Look for the Relative Value Play

Any industry will eventually consolidate into a handful of players. One may dominate, but within the group of large players, one will usually be a value play. That company tends to have the potential to jump, at least once management finds a catalyst that can move shares higher. That offers investors a chance to get a solid bargain during a market downturn, and often a dividend growth play on top of that too. One instance isIntel (INTC). In the chipmaker space, Intel ...
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