The Affluent Play for This Trending Market Could be the Biggest Winner

While the pandemic created a number of unexpected challenges, it’s created a number of opportunities as well. Slashing interest rates to zero has led to an explosion in a number of areas, most notably real estate. While some markets are struggling, overall, housing prices are on the rise, and look set to continue to do so. Within that trend, an exodus of population from densely-populated cities to the suburbs is likely to increase demand for higher-end luxury-home building as well. That sounds ...
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A Vaccine Play in an Overlooked Tech/Industrial Giant

Creating a vaccine in under a year is a tremendous achievement. The next difficult step? Making sure it gets out where it needs to go in a timely manner. So far, the rollout has some hitches. Vaccines sit on shelves. Some need refrigeration and have a short lifespan to be used. Potential wastage is high. That’s where company with expertise in organizing a global supply chain can help. One company is rising to the occasion with a partnership to roll out such ...
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The “Retail Isn’t Dead” Trade May be Stalling Out

As far back as 2017, analysts were calling for the death of retail, particularly with mall-related names. As e-commerce and big box stores increased their market share, the traditional mall seems to have died out. Covid didn’t help either. Yet many of these names have moved higher in the past few months. That’s partly market optimism, and partly these stores pivoting towards online sales as well. But the trend may be playing out. The poster child for this phenomenon is Urban Outfitters ...
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Low Expectations Can Drive High Returns

One common investment theme is a reversion to the mean. That’s a fancy way of saying that stocks that have outperformed the market will often come back down. And stocks that have underperformed the market will have their time to shine. With a big rally in tech now spreading to energy and the banks, a number of stocks have still avoided making new all-time highs. One area in particular looks interesting thanks to its low expectations: The defense sector. It’s a space ...
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Big Bank Earnings Season is Here, and Traders are Betting the Party Isn’t Over

Bank stocks and financials in general slumped more than the average stock during the market selloff. A decline in economic activity means fewer new loans being made, and old loans face a rising risk of default of some sort. However, with the economy opening again and with interest rates low, investors see further profits in the banking sector. With the space starting to announce earnings next week, further bullish bets are being made. One such company is Bank of America (BAC). The ...
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ESG Is Here to Stay—And Even Big Cap Companies Know It

Environmental, social, and governance issues, or ESG, has become a popular trend in investing. A great company can balance those needs while still providing sustainable long-term growth that rewards shareholders. Even some bigger players have made major strides along the way, including those often considered a threat to the environment or social issues. One surprising play is a name we’ve seen before—and a stock that’s still an attractive buy today. That company is Walmart (WMT). While it’s been derided on environmental grounds ...
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A Relative Bargain in the Chip Space Ready to Soar

Technology companies continue to push the stock market higher. Finding a bargain, even a relative one, is a tough one. That’s especially true with the chipmakers, which are firing on all cylinders. But for those companies that can provide both the hardware and software, higher profit margins are likely. That points to a possible bargain looking ahead. That’s also why it’s no surprise that Piper Sandler just upgraded one of the biggest names in the space. The company is Broadcom (AVGO). Shares ...
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Opportunities in Retail Remain as Ecommerce Sales Slow

Early sales numbers for the last quarter of 2020 are starting to come in. There’s some good news and some bad news. The good news is that sales are rising. The bad news? The rate of the rise is slowing down. That’s understandable. Many major retailers were able to see sales rise thanks to increased ecommerce trends. As customers have completed that shift, the rate is starting to stabilize. However, there’s still some trading opportunities as a result. Case in point: Costco ...
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