Invest When Big Uncertainties Go Away

Every company has some kind of uncertainty surrounding it at some point. The market doesn’t like uncertainty, and will likely price shares of a company with an uncertain outlook too low. It’s only when the market is certain about a company’s performance that shares will be priced for perfection. Many companies have seen uncertainties flare up, often from some kind of legal or regulatory issue that can weigh on the stock. The time to buy is when that uncertainty ends. For instance, ...
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This Company May Enjoy a Seasonal Boost in the Coming Months

While the holiday season is over, the final data will take weeks to compile. Early information coming in indicates that consumers remained strong, and spending held up well. That’s good news for a number of companies, such as retailers. They have been laggards this year amid fears of a massive slowdown in consumer spending. Companies that supply retailers have also been underperforming, and may get a final boost in the months ahead as the final holiday sales data comes in. One potential ...
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A Rotating Market Means Buying Underperforming Stocks Now

Stocks have had a strong year in 2023. But the past few weeks has seen stocks start to rotate. The big-cap tech stocks that dominated returns for most of the year are slowing down. Other sectors are starting to lead. That suggests that investors may fare well investing with companies that have been underperforming lately. They could see above-average returns, and help keep markets trending higher. One underperforming stock this year has been Berkshire Hathaway (BRK-B). The conglomerate is up 16 percent compared ...
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Markets Weren’t Expecting This Trend – But It Can Lead to Solid Profits Now

As the stock market got mauled by the bear in 2022, one sector held its own: Energy. The trend has reversed in 2023, as the sector has been whipsawed by fluctuating oil prices. But there’s another twist to this trend. And understanding it will help investors navigate moves into 2024. While energy prices have been declining even as OPEC nations have cut their production, this new trend hints at the profits available now. That trend is the rise of U.S. oil production ...
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Smaller Companies Still Have Room to Run in the Great AI Buildout

2023 has been a great year for big-cap tech companies, particularly those investing heavily in artificial intelligence (AI). That’s especially true for hardware companies that can provide the tools necessary to run today’s latest AI programs. Most of these massive companies are priced for perfection, however. Smaller companies, which haven’t had the investor interest yet, could be better players in the AI space, as they catch up to the big names that moved first on the AI news. For instance, memory chip ...
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This Big Tech Company Is an Overlooked AI Play Growing Revenues Now

AI has been the major market theme of 2023. It’s easy to see why. AI technologies can improve a company’s operations at a significantly low cost. For big-tech companies, small improvements can mean billions of dollars in extra revenues and profits. That’s why the trend has been great for big tech stocks. One big tech stock has already started to benefit from rolling out AI technology. That company is Salesforce (CRM), a producer of customer relationship management software that is provided to ...
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For An Improving Economy, Consider This Key Service Player

Recent economic data shows that inflation is slowing. And that consumers are holding up well, as is the job market. That suggests the economy could trend higher next year. Should that happen, there are a number of companies that stand to benefit. That includes companies that cater to the movement of goods and services across the economy. These companies have seen a drop with a slowdown in spending on goods in 2023, but stand to see improving conditions next year. Among global ...
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This Near-Perfect Money-Making Machine Just Had a Small Misstep

Great companies are few and far between. They offer investors an opportunity to invest for long-term growth. And they generate tremendous cash flows, which can provide the capital for new ideas, while still rewarding shareholders along the way. That’s a lot to ask for. But over time, many companies have delivered on that promise. One company, however, has managed to stand head and shoulders over the rest while doing so. That company? Apple (AAPL). The leader in consumer technology is one of ...
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