Stocks To Buy

Investors are starting to look beyond the chipmakers when it comes to the AI story. That’s because strong demand for AI chips has made this a place to get big returns. But other parts of the AI story matter as well. That’s why investors are shifting to software plays. But other hardware components are equally valuable as AI tools continue to grow. Especially for hardware that can enable AI communications between humans and machines, as well as between machines. That’s why communications ...
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For the past two years, semiconductor companies have been the big focus for AI investors. There are massive orders of chips needed to power today’s AI programs, with more demand down the line. However, stocks of leading chipmakers have already had a substantial move. Investors may fare better looking at other constituents of the AI market. That’s especially true for software companies, given that AI is ultimately a software, and that can provide higher margins for investors than hardware. For instance, software ...
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Markets tend to rotate over time. It’s a way to give a leading sector a break, while continuing an overall market trend. Recently, tech stocks have slowed significantly. But other sectors have taken over the lead. One potential winning sector in the months ahead is healthcare. A laggard last year, the space is starting to show some investor interest and signs of life. Investing in the sector trending higher makes for a simple momentum trade. Right now, healthcare-related companies appear to be ...
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The stock market is a complex interaction of several factors. And while the headline numbers for the stock market are still strong, behind the scenes, a rotation is underway. That rotation includes a shift away from high-flying tech stocks. Instead, other segments of the market are starting to show some strength here. That’s a good sign of a sector rotation underway, where different sectors take over the market lead. For instance, the healthcare sector was a poor performer in 2024. But it’s ...
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Over time, a company’s earnings are the key driver of its returns. However, many industries look at other metrics to determine the quality of earnings. Understanding these key metrics can give investors a sign as to a company’s long-term health beyond earnings. For instance, the restaurant industry may look at the turnover, or the number of times that customers sit down at tables during the course of a day. Many retailers use similar metrics. The simplest metric for retailers and fast food ...
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One way investors can find good opportunities is to find stocks that institutional investors are buying. Institutions have to declare their stock purchases over time, from insurance companies to hedge funds, and any organization that becomes a major shareholder. When these big players buy in, it’s a sign that they expect shares to trend higher over time. It may not happen right away, but these large buys are usually a sign of a stock with significant upside. One recent institutional buy is ...
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Companies have many ways to see faster growth. One way is to invest more into researching new products and services to offer. For some companies that have multiple departments and divisions already, a corporate spinoff may be ideal. That could include the direct sale of a division to another company. It could also mean that a company voluntarily splits itself up into two or more companies. That way, investors can view a company as a standalone business, not as just one ...
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This earnings season, many companies with large exposure to cloud storage have reported weaker revenues. That’s been a big driver for a selloff, even if overall earnings have generally been bullish. That’s creating a short-term opportunity to buy a drop in these companies. After all, data needs only continue to rise. And companies that provide cloud services have more jumps in demand coming as AI programs continue to roll out. For instance, Google (GOOG) saw its largest one-day market cap decline ever ...
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