Apple Shares Still Have the Midas Touch

Analysts are upgrading shares of Apple (AAPL) ahead of earnings. Shares of the tech play are still off the highs set back in September, but look set to continue higher. While earnings day itself may play a wild card, so far, all the early indicators are for an earnings beat. The first hint is the company’s $1.8 billion in revenue on the App Store the week of Christmas, a record for the firm. Second, the company’s production numbers on the iPhone 12 ...
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An Oversold Play on a Beloved Tech Niche

Nothing moves in a straight line. For investors who make short-term bets on a company, this fact can produce large losses quickly. But for investors willing to play trends, waiting for a pullback on a stock in a long-term uptrend can prove worthwhile. That’s especially the case when a short-term drop has no apparent rationale behind it. That can happen fairly often in the tech space, as investors look to lock in profits quickly. That appears to be the case with QuantumScape ...
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This Pandemic Beneficiary Has Room to Move Higher

A number of companies were obvious beneficiaries from the pandemic. Work-from-home trends were the clear winners. But consumer spending changed in other ways as well. For instance, spending on business apparel dropped and sales rose on more comfortable apparel (especially items that wouldn’t be seen during a Zoom meeting). But despite the rising trend of athletic and leisure ware, many of these names have seen strong growth but a relatively poor stock performance. That seems to be the case with Under Armour ...
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This Play on Travel and Small Business Set to Thrive in 2021

A number of companies focus on one product or service. Those concentrating in areas affected by travel bans and small businesses fared poorly in 2020. But with an end in sight, these underperforming names may thrive in the coming year. That’s also true for companies that service these firms. One such name? American Express (AXP). The credit card company caters to a more affluent crowd, like those that travel and own small businesses. It’s one of the few big-name financials to see ...
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Still Room for the Airlines to Fly Higher

Since the first Covid vaccine was announced in early November, airline stocks have beaten the overall stock market. That trend is likely to continue in 2021. Holiday travel trends showed an uptick, even as air travel levels were still 75 percent below 2019 levels. With future gains in passengers likely, and with adequate government support, it’s likely that the sector will continue to surge higher as trends improve. That bodes well for the space as a whole, although some names will fare ...
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A Blue-Chip Play Still Under Pre-Pandemic Highs

The stock market’s solid run this year has allowed companies to quickly shake off one of the fastest and steepest bear markets in history. A number of companies rightly remain below their pre-pandemic highs. But outside of airlines, cruise ships, and theater chains, a few other plays have likewise struggled. One of the top blue-chip manufacturing plays, which produces thousands of products has been a laggard here. And that’s in spite of the fact that some of its products have been essential ...
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A Market-Beating Investment Vehicle Trading at a Discount

Funds can have a bad name. But when they have a manager on a hot streak, who runs a concentrated portfolio, and who can invest in strategies such as shorting the market and in SPACs, it might just be a top play of 2021. That’s the case with Pershing Square Holdings (PSHZF). Run by Bill Ackman, the fund is coming off a great year following Ackman’s bet against the market earlier in the year. The fund also owns some top-performing brands that ...
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This Underperforming Giant May be a Top Performer of 2021

Many investment ideas run on the idea of a reversion to the mean. That’s just a fancy way of saying that stocks that have performed well will eventually underperform the overall market. And companies that have performed poorly will start to fare better. With the turning of the calendar year, a strategy of buying underperformers is appealing, depending on the name. One such name? Berkshire Hathaway (BRK-B), which has lagged the market by 44 points since early 2019. The case for outperformance ...
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