High-End Home Investments have Analysts Gushing Over this Retailer

While affluent households may have cut back spending this year, chances are their income levels have still held up well. And with many public venues closed or at reduced capacity, some of the income that would have been spent there may get invested into the home. That’s the thesis that Cowen has for its decision to upgrade shares of high-end home décor retailer Restoration Hardware (RH). With their expansion into Europe, the company could be on the cusp of a multi-year ...
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E-Commerce Trends Likely to Strengthen, Making this Winner Still Buyable

Retailers with an online presence have held up well amidst the shift to online buying in 2020. Those without such a plan have had to scramble for one, but those who were already an online-only presence have done even better. That’s partially because online-only retailers don’t have to have a network of physical stores to sell their products. It can concentrate workers into warehouses rather than have to deal with both warehouses and stores. So it’s no surprise that some analysts see ...
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Why this Retail Apparel Company May Have its Best Days Ahead

It’s been a tough year for retailers, as pandemic shutdowns have kept down physical, in-store traffic. While many have shifted online, a few retailers have struggled. However, with a growing overseas presence, a strong e-commerce platform, and an increasing range of products, one company already looks like a standout. That’s why shares just got an upgrade from Bank of America even after the stock has had a great run this year. The company? Lululemon Athletica (LULU). Shares are up a staggering 71 ...
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Buy This Winner and Avoid the Losers in the Fast-Food Space

Every sector has its winners and losers. Amidst a rapidly changing economic landscape, even the fast-food companies haven’t been immune. But some companies have fared well, even grabbing market share during this tumultuous time. Companies in the quick-service space that have seen an increase in traffic have done so with innovative marketing and by adding new menu items, rather than removing and scaling back right now. That’s the view of the fast-food analyst at Stifel, who sees the biggest beneficiary of this ...
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M&A Activity Hits the Oil Space… is a Recovery Likely?

Energy stocks have been poor performers this year. While oil prices have recovered from their short-term, fear-driven move into negative territory earlier in the year, the price of crude is still low. Even worse, energy stocks are down 50-60 percent or more year-to-date as low prices and demand, to say nothing of new technologies, continue to threaten the industry. That makes a new M&A announcement in the space welcome news… and a potential trading opportunity as well. The proposed merger is between ...
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Railroad Stocks Get an Upgrade: Here’s Two Worth Buying Now

Railroad stocks are looking undervalued as traffic is holding up well. In fact, the latest measures are showing that rail volumes are back to pre-pandemic levels. Railroads ship goods all over the country, including consumer goods from ports, as well as commodities from farm states, making them an interesting hybrid play on all levels of the economy. With rail volume holding up so well, it’s a sign that the economy continues to recover. That’s what led Benchmark’s logistics analyst to upgrade shares ...
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Interest Rates May Stay Low, But Investors are Warming to the Big Banks

Bank stocks can either be a great investment or a terrible one, depending on the timing. With the economy struggling to recover, banks aren’t the most obvious candidate for a rally. Yet many investors are gravitating towards them as investment opportunities now. Part of that may be the relative valuation of the banks, as they haven’t had the strong rallies of the tech sector. Another part is that, while interest rates may weigh on profitability, the banks will still profit. One such ...
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Two Media Plays to Consider Now

Activist investors can often point to undervalued companies that need to make a few major changes in order to unlock tremendous value. That’s why the recent purchase by activist investor Nelson Peltz is attracting attention. The latest undervalued find is a company in the media space that also has some legacy operations. Any transformation there that improves profitability could score a huge win for shareholders. The company? Comcast (CMCSA). Owner of a cable network, over the past decade the company has transformed ...
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