This Backbone-of-AI Play Is Worth Picking Up On a Dip
Some companies are cyclical, having a few good years and then a few bad years. Companies such as automakers or durable goods like appliances tend to fare well when the economy is, for instance.
Other companies can play to longer-term trends. That’s particularly the case for tech companies, and why they’re such valuable firms to begin with today. The rise of AI also means an increase in their growth potential in the years ahead.
That means investors should continue to buy shares ...
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Could This Repeat Activist Target Finally Trend Higher?
There are many ways to profit from the stock market. One such way is to target companies that trade at a reasonable value, have a strong brand, but could benefit from stronger leadership. These companies tend to be targets for activist investors.
Today’s activist investors tend to be firms looking to realize bigger profits from reorganizing a company, selling off a corporate division, or scaling back costs. If they’re successful, they can make market-beating returns in a short period of time.
A ...
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This Industry Leader Is Focusing On More Shareholder Value and Income
The energy sector has been a laggard for 2024. Oil prices have struggled to trend around $70 for most of the year. The outlook isn’t too strong going forward either, amid fears of a slowing economy, or at least one where energy demands are focused more on nuclear energy for AI projects.
While oil may be down, it’s not out. It’s still a critical resource that’s needed, and the most energy dense for transportation needs. Given the slowdown in EV adoption, ...
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AI Demand Continues to Benefit Software Plays
The AI story continues. While many big-cap names are at all-time highs, other and smaller players are starting to show better signs of strength. Investors can likely see better returns going into 2025 with smaller-cap AI stocks.
That’s especially true with software stocks. That’s because software companies tend to offer high profit margins. Once a piece of software is developed, the marginal cost of developing an additional copy is essentially zero.
Software companies seeing strong demand from AI software can continue to ...
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This Hardware Trend Shows the AI Play Isn’t Over Yet
While chip stocks have slowed down in recent months, companies continue to invest billions in AI initiatives. That’s seen with a demand in new power sources, plans to build out data centers, and other hardware necessary to operate today’s AI programs.
With focus moving away from the chipmakers, companies that offer other parts of the hardware ecosystem can still see growth in the years ahead. Particularly if they’re making breakthroughs that can further benefit the AI rollout.
One such computer hardware play ...
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Slow and Steady Can Win the Investment Race
Investors often have a choice that breaks down between growth stocks and value plays. Right now, the soaring demand for AI technology is giving many slow-growth companies some unexpected kickers. That includes utilities, but can also include companies related to hardware, software, and connectivity.
Investors can likely see above-average returns playing to this trend in the years ahead. And more old-school companies may offer consistent returns rather than the big jumps and drops of a growth play.
For instance, telecom giantAT&T (T) ...
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Another Play on Today’s Strong Travel Trends
Consumers may be slowing on spending overall, but they continue to reach into their wallets to spend money on experiences such as travel and tourism. That bodes well for a number of subsectors of the market.
That’s also why hotel, airlines, and other travel-related companies continue to fare well. But there’s another part of the market that could also see continued strength into next year.
That market? The cruise liners. Thanks to strong booking demand and energy prices remaining lackluster over the ...
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Luxury Experiences Will Still Drive Consumers In 2025
Recent data suggests that there’s a global slowdown in spending on high-end luxury goods, such as handbags and clothing. However, that trend hasn’t yet worked its way to experiences for higher-income spenders.
That, combined with strong travel trends as the holiday season kicks off, suggests that companies that cater to these experiences still have more room to run. And that today’s investors can likely see solid returns on these companies well into next year.
For instance, hospitality data shows that travel and ...
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