Lower Costs Point to Better Profits
Costs have been rising over the past few years. For companies, the cost to manufacture goods has risen thanks to higher commodity prices, higher labor prices, and even higher regulatory costs. When any of those costs can go down, profits can improve.
One big way to bring costs down quickly is for regulatory costs to drop. That can include lowering corporate tax rates, or lower tariffs on imported goods.
The European Union is about to launch a 9% tariff on electric vehicles ...
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It’s Still Early in the Rush for AI Leadership
While AI stocks have had a great run since ChatGPT launched in late 2022, we’re still in the early stages of the technology. Many who have used AI programs aren’t using them consistently. The ability to benefit from AI tools is still in its early stages.
That’s why the buildout of AI still looks attractive for investors over the long haul. It will take years to build AI programs that are more intuitive and easy to use.
That also means that other ...
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This Tech Trend Continues to Gain Traction
While the market has been focused on all technologies that start and end with AI, there are several trends within that space that have yet to reach their full potential. With so much focus on the growth of AI itself, some of the software plays in AI have been overlooked.
One key area has been cybersecurity. 2024 is on track for the worst yet for ransomware attacks. And a massive data breach last week may have compromised billions of personal records.
With ...
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One Simple Way to Play the Thawing Housing Market
The housing market has been effectively frozen for nearly two years. High interest rates created high mortgage rates. That deterred possible sellers from changing homes, given the high jump in interest rate costs.
Now, with rates set to decline later in the year, the housing market could be set to open up. And lower rates could help all homeowners, but especially make it easy for first-time buyers to get into a starter home.
That’s good news for companies like D.R. Horton (DHI) ...
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The Market’s Darlings Are Pricey, But Unloved Stocks Still Offer Some Value
The market continues to rebound from its steep selloff. With many of the most heavily sold names bouncing back the strongest, investors who look for slower-moving companies could see the best value here.
That’s because the market rally this year has been driven higher by just a few big-cap tech companies. Other companies are starting to show signs of catching up, and will likely end the year strong.
That means investors who buy during today’s market fears could see the best returns ...
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One Sign of the AI Rollout Is Here
Companies are focused on growth. Sometimes, things don’t go to plan, and they have to cut back on headcount. That’s a bad sign. But sometimes, a company that’s growing finds ways to do more with fewer employees.
That’s why markets send shares of a company higher after what first appears to be bad news. If a company can continue to grow with a smaller headcount, its profitability improves.
With many of today’s AI trends underway, job layoffs at a company could be ...
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Invest With an Industry Leader that’s Down But Not Out
Every company operates differently. A great company is one that can operate with a lean platform. That means they may not be in the business of acquiring physical goods that then have to be manufactured.
Ideally, investors should see the best returns with a company that has a high profit margin, and low cost to acquire that revenue in the first place. Companies with that structure that lead their industry should deliver great returns over time.
One potential winner is Airbnb (ABNB) ...
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There’s Still Time to Pick Up Slow-And-Steady Winners
With the entire market selling off in recent weeks, investors have a chance to buy shares of great companies, no matter what sector they’re in. For tech companies, it can mean getting a hefty discount to recent higher.
For other companies, any dips may be short-lived. Investors who focus on industry leaders may have to pay up no matter what happens in the market. But in many cases, that can be worth it.
Amid last week’s market volatility, only a handful of ...
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