This Sideways Market Play Could Prove a Stealth Winner
Although the stock market just hit all-time highs a week ago, the past few months have seen a slowdown in stocks. Various fears, from an economic slowdown to the impact of tariff, are likely to keep weighing on stocks.
That means a sideways market. In this kind of market, income-producing stocks tend to be reasonable plays. And so do companies that are likely worth more than the sum of their parts. Ideally, an investor can find both.
One such play may be ...
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A Sticky Housing Market Isn’t Too Bad for Related Stocks
Mortgage rates still remain near 7%. And many borrowers were able to refinance well under 5% in recent years. That’s keeping potential sellers on the sidelines, as the cost to carry a mortgage factors heavily into the total cost.
While the housing market remains sticky, homeowners continue to spend on projects to maintain the value of their home. And that bodes well for companies that provide those goods and services to homeowners.
For instance, retailer Home Depot (HD) reported its first increase ...
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Stay Invested With This Defensive Stock Play Now
Although the market hit all-time highs just last week, the latest market weakness suggests that stocks will continue to struggle to push higher. It’s even possible that, if markets fail to break meaningfully higher, we could see a sizeable selloff.
In a market drawdown, stocks that have had the biggest moves higher could likely see the biggest declines. So investors who are looking for a safe place to invest should look for companies with a strong defensive position today.
One such defensive ...
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This Retailer Wins as Consumers Stay Fickle
Consumer spending has slowed down in January. Given that the start of a new year means the end of the holiday season, some slowdown isn’t a surprise. But for fearful investors, it may be time to look for retailers that can continue to bring in money from shoppers.
One way to keep buyers coming is to create bargains that bring investors back time and again. One small niche of the retail space uses deep discounting to provide such deals.
That may be ...
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Cautious Guidance Tends to Reward Dip-Buying Investors
Earnings season is entering its tail end. Most companies have beat on earnings expectations. However, some companies have beat on earnings but saw shares sell off. Why? Because of more cautious guidance.
When companies offer guidance, it sets expectations for the next few quarters. But many companies tend to be conservative with their guidance. So, when shares sell off following cautious guidance, the longer-term trend tends to be higher as earnings grow over time.
Recently, retailer Walmart (WMT) offered cautious guidance, as ...
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Invest With Companies Using AI Tools to Succeed Today
While AI has certainly stolen the headlines and investors may have started to use some programs such as ChatGPT over the past few years, many are still skeptical about what AI can accomplish. But many companies are using AI tools to find ways to improve their operations right away.
It’s not just in high-tech spaces where AI tools can be used to improve productivity. AI is making its presence felt throughout the economy and across many seemingly low-tech sectors.
For instance, the ...
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This Company Could Benefit from Stubborn Food Prices
Following a few years of above-average inflation, some food items remain at a premium. Thanks to poor weather, crops such as cocoa and coffee have jumped to all-time highs. Other agricultural crops have also held up well.
These higher prices provide farmers with the capital that they may need to make improvements on their farms. That can include investing in newer technologies to better farm more efficiently and increase their productivity and output.
That trend could benefit Deere & Company (DE). Shares ...
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This Play Could Fare Well as Consumers Keep Spending on Travel
The latest retail spending data indicates a strong slowdown after the holidays. Consumers aren’t entirely tapped out yet. But they do continue to show a propensity to spend more on experiences over goods in the post-pandemic era.
That means that travel and vacation spending is likely to remain strong, and earnings from companies in those industries continue to point to a strong trend. With that trend likely to continue, those companies are starting to see some momentum.
One such play is Airbnb ...
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