Acquisitions Point to a Healthy Long-Term Buy
In any industry, some consolidation is normal over time. It’s also healthy when the largest players in the industry make notable acquisitions.
That’s because acquiring smaller companies can be a good driver for growth down the line, and offer a smaller company the financial strength of a larger one. Over time, industries tend to come down to a few major players, who often pick up promising up-and-coming growth plays.
That looks like the case with healthcare giant Johnson & Johnson (JNJ), which ...
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This Market Dog Is Showing the Potential to Lead This Year
One market strategy is known as the “Dogs of the Dow.” By buying the five worst-performing stocks in the Dow 30 at the start of a year, investors have historically outperformed the market.
That’s due to a concept known as “mean reversion.” Simply put, a stock that underperforms in one year is likely to outperform in the next, averaging out to a more typical return. This strategy can work with other beaten-down stocks.
That includes Walgreens Boots Alliance (WBA), which was a ...
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This High-Flying Group of Stocks Gets a Much-Needed Pullback
Nothing ever moves in a straight line. Investors who think they’ve missed out on a trend can likely have several opportunities to buy in, especially for a trend with years behind it.
The AI trend of the past few years has seen a number of pullbacks, including the market’s 8.5% peak-to-trough decline in 2024, and a 10% pullback in 2023. But a new trend is emerging that’s much more fast-moving.
That trend is quantum computing. Companies focusing just on this technology took ...
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A Simple Way to Play Today’s High Bond Yields
The bond market has disconnected from the stock market in recent months. Despite the Federal Reserve cutting interest rates a full point, bond yields have ticked higher. Some see the 10-year Treasury, the bellwether for the bond market, trending towards a 5% yield.
That’s not too much further from its current level near 4.7%. And it suggests that most of the bond market’s move higher may have already occurred.
If that’s the case, now may be an ideal time to lock in ...
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The Face of the AI Revolution Is Still Delivering Results
Investors love seeing the big growth behind the rollout of generative AI. But after two years of rallies in the big-cap stocks, concerns are mounting about whether or not these companies can keep up big growth.
While growth is likely to slow, new iterations of technology will likely ensure above average growth continues as new AI programs are developed, data centers are created, and as hardware demand remains robust.
That’s why tech giant Nvidia (NVDA) could still have a great year, adding ...
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This Oversold Sector May Be Due for a Rebound
While the stock market remains near all-time highs, some sectors have fared much better than others. Tech stocks tend to be big winners in most years, but even within the tech space, a few sub-sectors have fared well compared to others.
Quantum computing stocks have soared in recent weeks, thanks to bullish news from that sector. But solar technology stocks have lagged, reflecting concerns over a pullback in subsidies.
That concern may be creating a buying opportunity today. Even if solar subsidies ...
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Wealthy Household Spending Remains High In This Space
Consumer tastes are shifting, and lower-income consumers may have to cut back on big spending this year amid a rise in credit card delinquencies. For higher-income homes, some areas won’t see much of a cutback in spending at all.
The most likely place to hold up is with fine dining, even fine at home dining. Upper-income homes continue to spend well on high-end menu items. That bodes well for premium ingredient providers.
One such player is Chef’s Warehouse (CHEF), which distributes higher-end ...
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This Underperforming Sector Could Hold Up Well in 2025
Behind the overall stock market numbers, many individual sectors move in different ways at different times. Some sectors tend to be runaway winners some years, but are highly cyclical and trend lower in others.
Other sectors tend to be steadier, and could hold up well if the overall market has a poor year. Looking to 2025 and the market’s early struggles so far, investors may want to look for safety in an underperforming space.
That space is the restaurant industry. While rising ...
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