Strong Airline Earnings Point to Solid Future Returns

The airline industry is back. Earnings season is still unfolding, but the airlines, which looked like they may be facing years of challenge ahead at the start of the pandemic, are already at or near profitability. Delta Airlines (DAL) has led the way with earnings so far. The company earned $1.02 per share, excluding special items on its earnings. The move comes as domestic travel rebounds to pre-pandemic levels. Given that Delta was expected to lose $1.33 per share, the results are ...
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Global Trends Point to This Low-Cost App Giant

Pandemic restrictions are ending globally, which points to a potential revival, however slowly, of global travel. While some may be wary of international travel, others may be sick of staying at home or traveling domestically. Either way, those trends bode well for the larger travel and tourism industry. With business picking up, the fundamentals of many companies will likely improve, leading to higher share prices for those stocks. One big potential winner here is Airbnb (ABNB). Many who resume traveling may want ...
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This Return-to-Normal Trend Points to Further Big Profits

The entertainment industry has been hit hard thanks to the pandemic. While many areas are resuming in-person forms of entertainment once again, the best gauge for how the industry is faring is by looking at box office receipts. While movies have declined somewhat in the past few years thanks to video games and streaming, it’s starting to show signs of a return to a pre-pandemic life. Case in point? The Walt Disney Company (DIS). The company just reported its latest release, Black ...
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Big Tech Has Unlocked the Secret to Staying Big— Or Even Getting Bigger

Historically, most companies focused on one product or service. That eventually saturates the market. Today’s tech companies, particularly software ones, are able to break that cycle with new products or better upgrades to existing software. Companies that also pivot to other opportunities can create big value for themselves and shareholders as well. That’s why so many of today’s big tech names have continued to increase in value, even as some of them have become multi-trillion-dollar companies. One up-and-comer for this club is ...
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Growth Trends Will Continue to Make Popular Stocks More Valuable

Sometimes, a company will be caught in a virtuous loop, where its rising share price attracts analyst upgrades. In turn, the shares rise again, prompting more analysts to turn bullish. While that can sometimes end up looking a little silly in hindsight, for the right company, it may be a sign that growth is taking off. That could be the case with a big growth story in the markets right now, especially when the virtuous cycle leads a company back to ...
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Higher Prices? Higher Rewards for Shareholders

Some companies assume that when things are going well, that trend will continue forever. That can sometimes lead to unpleasant surprises. During last year’s pandemic, a number of companies cut or suspended dividends or share buybacks, for instance. However, companies in the commodity space tend to recognize the power of cycles. When things are going well, they may be more inclined to pass the good times on to shareholders rather than overinvest when times are good. Case in point? Royal Dutch Shell ...
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Supply Chain Issues or Not, Retail Trends Will Likely Move Higher

The economy has been moving strongly past the pandemic, but concerns over inflation and supply chain disruptions have led to some uncertainty. While markets are generally heading higher, one area is likely to continue plugging along at a steady and growing rate. That space? Retail. Pent-up consumer demand is coming out as the labor market looks to not only stabilize, but do so at higher wages. That bodes well to companies across the retail spectrum. Most investors would do well to focus ...
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A New CEO Could Break this Stock Out of Its Stuck Range

There’s nothing wrong with a company trading in a range, moving up a little and down a little, but mostly unchanged over time. But investors who look for catalysts can likely find hints as to whether a company will break out of its range higher or lower. Right now, one range-bound stock is also one of the biggest out there. Shares of Amazon (AMZN) have been stuck in the low $3,000 range after a massive rally over the past few years. Now, ...
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