Stocks To Buy

For nearly two years, AI has been the word that’s helped push many tech companies higher, particularly large-cap companies. That’s because those firms have been at the forefront of AI spending. For large enough companies, spending a few billion to build out AI is no big deal. While the market is shifting towards other parts of the AI story, many big-tech companies can still trend higher for a more fundamental reason. They generate massive amounts of cash. If that money isn’t being ...
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Lower interest rates mean it costs less for companies to borrow. And that it’s easier for them to expand operations. That’s why the market has taken off as it’s clear that companies will look to leverage up as the cost to borrow goes down. Combining that with sectors that are seeing increased spending could make for a winning investment strategy in the months ahead. With a construction, manufacturing, and infrastructure boom underway, a few possible winners look likely. One contender for a ...
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Interest rates are finally starting to go down. That means the cost to borrow will decline, benefitting highly leveraged companies. But the cost to lend will also decline, meaning that fixed-income investors will get paid less for their holdings. For long-term bondholders, the price of the bond will rise to match interest rates. This is a concept known as duration. But short-term bond holders don’t have exposure to duration, and will see their bonds roll over at a lower interest rate. That’s ...
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Investors love tech stocks, but have started to branch out to other sectors, such as utilities, telecom, and consumer stocks in recent months. Those sectors could continue to help lead the overall market higher into 2025. Meanwhile, some sectors are starting to look oversold. They’ve simply been too far out of favor with the market for too long. They could be best poised for the strongest returns over the coming months. Right now, energy looks like an unloved part of the market ...
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Many big tech stocks have led the market higher over the past two years. However, not all tech stocks are alike. Investors have been betting on plays with fast growth now. But as the market shifts, looking for consistent growth may be a better option for investors. That’s because the spending growth on AI is likely to start slowing in 2025. The big spending now should decline as companies look to integrate new AI tools and reassess their needs from there. So ...
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The holiday season is when retail stocks have their best performance of the year. That’s because holiday sales provide retailers with the chance to see their biggest profits. However, consumers remain cautious after years of inflation. For a retailer to have a good year, it will need to offer bargains this year. Making value a priority may not mean a big profit margin. But it will mean solid revenues. And it will likely mean that those who don’t offer enough values ...
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Investors have been concerned about AI spending in the most recent earnings season, even as many big-name companies reported big spending on AI projects. While that put tech stocks in a funk, last week’s statement from Nvidia’s (NVDA) CEO noted that the AI trend is alive and well. That said, the market is still willing to punish companies with short-term concerns over AI spending or results. That can create an opportunity for investors looking to buy ahead of a year-end rally. For ...
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Interest rates have already started to decline ahead of the first rate cut by the Federal Reserve later this month. That’s starting to cause a market shift, allowing interest-rate sensitive companies to move higher. As rates trend lower, companies will benefit. They’ll be able to borrow and lower costs. And for some companies, it can also mean that their dividend yields will look more attractive relative to bonds. That’s the case with real estate investment trusts, or REITs. They’re required to pay ...
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