15131

It’s Not too Late to Invest in Defensive Stocks

Rising interest rates and falling bond prices have hit some stocks particularly hard. That includes utilities and telecoms, as well as consumer goods companies. These firms tend to act as defensive stocks, holding up well in down markets while still moving higher in rallying markets. Some of these stocks may have formed a bottom in recent weeks. But with the potential for an economic slowdown in the next year, these stocks could still be a bargain. Should interest rates move lower, they’ll ...
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15125

Invest With Companies Leading Market Trends

This year, the stock market may have had its rally almost entirely thanks to the interest in AI. It’s pushed many big-cap tech stocks higher. Thanks to their high weighting, in turn, that’s helped stock indices rise. That trend may not be over, given the long-term opportunities as AI moves out of its early stages. If so, many companies that can benefit from the trend may be a long-term buy as the market moves out of correction mode. One example is with ...
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15118

Earnings Season Shows an Opportunity for AI Investors

This quarter’s earnings season has shown that investors are less interested in AI, at least as far as big tech names are concerned. Instead, the concern is how those companies are managing their major cash cow, cloud services. Yet that’s a space where AI tools could enhance returns in the future. And investing with companies that can provide AI tools specifically for cloud services could see big gains outside the well-known big tech names. The leading player for this intersection of trends ...
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15109

Companies Serving Up Good Earnings Remain a Buy

The market’s selloff in the past few months has largely occurred between earnings seasons. The past few weeks, we’ve seen companies report solid earnings. The market hasn’t been in a position to reward those earnings yet, but could in the weeks ahead as stocks form a base and look to move off their current prices into the end of the year. Picking through today’s earnings winners could lead to solid returns in the months ahead. For investors who are still cautious about ...
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15105

Buy this Industry Leader Rewarding Shareholders Now

Companies can do a lot of things with the profits they make. They could continue to expand the business, but after a certain size, most companies start to pay a dividend or buy back shares to reward shareholders. A handful of great companies are able to continually grow their cash flows, and from there reward shareholders with growing dividend payouts, on top of being able to further grow the business. That’s the case withExxonMobil (XOM). The energy production company is making progress ...
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15101

Look for Efficiently-Run Companies to Thrive in Choppy Economic Times

With interest rates at their highest levels in 15 years, companies can’t just rely on cheap debt as an option when making decisions. The companies that will fare best will be those that have strong cash flows and are run efficiently. That should keep profit margins high, and provide the capital to benefit from new opportunities as they emerge. The more efficiently a company can operate, the more resilience it will have in the years ahead. One company that’s been working on ...
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15095

Buy the Earnings, Not the Earnings Report

Earnings season can create some big swings in share prices. And they can create some counterintuitive moves. Companies that beat earnings can sell off. Companies that miss on earnings can see shares rally. And then there come the moves from any forward guidance. Over time, earnings drive a company’s share price. So even if a company misses the mark for some reason in a given quarter, if its earnings are improving, shares will likely trend higher in time. The market punishedAlphabet (GOOG), ...
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15091

A Safe Way to Play the Bitcoin ETF Rumors

Bitcoin is having a strong year. Rumors of an ETF approval are helping to push the crypto’s price higher, even if the actual news hasn’t materialized yet. Chances are investors will continue to see big daily volatility in cryptos like bitcoin for some time. Those looking to play the overall rising trend in the space can find less volatile places to play it. That means ignoring companies with heavy bitcoin exposure, such as bitcoin mining companies. Cryptocurrency brokerages could benefit from the ...
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