Buy the Short-Term Bumps in Booming Industries
Investors can make great returns with the right blue-chip stocks, provided they’re bought at the right time. Many companies go in and out of favor with the market for various reasons, and earnings season can lead to quick drops.
However, for sectors that have bullish longer-term trends behind them, a drop following earnings can be a great investment opportunity. It can allow investors to buy in and get a reasonable price on a company likely to outperform for years.
Right now, the ...
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This Oversold Commodity Is Finally Trending Higher
The commodity market moves to the beat of its own drum, usually reflecting specific supply and demand dynamics. A number of commodities have seen either a supply shock or rising demand in recent years. Those tend to be good for prices.
Sometimes, however, commodities fall out of favor. For instance, declining demand for EVs has led to a big drop in lithium prices. Lithium is a key component for rechargeable battery technologies, and EVs are a big chunk of that demand.
However, ...
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The Best Investment Offense May Lay in this Defense Stock
With rising geopolitical tensions, investors have been pushing defensive names higher. That includes gold, which has hit new all-time highs. Oil has had some small spikes higher, but nothing major yet.
One big winner from this rising trend is defense contractors. Military spending is likely to increase, both domestically and abroad, and major U.S. contractors will likely reap the largest benefits, especially those companies that also help supply American allies.
In the defense space, aerospace contractorLockheed Martin (LMT) could see further gains ...
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For Steady Returns, Invest With Companies That Benefit From Network Effects
Some companies make their profits because they benefit from a network effect. Simply put, the more users there are on a network, the more valuable that network is. Companies that advertise to that network or support that network benefit from large or growing networks.
Investors who buy companies that can benefit from the network effect when they’re trading lower can earn above-average returns over time thanks to this powerful effect.
One example of a network is the network of smartphones. Companies that ...
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Buy the Overreaction In this Streaming Giant
Streaming stocks have gone in and out of favor with the market over the past few years. Today, Wall Street analysts have conditioned investors to focus on metrics like total subscriber count.
The past year has seen the major streaming platforms find ways to crack down on password sharing. And that’s created more account users. However, that’s not always the best way to maximize earnings.
Despite beating on subscriber count and earnings,Netflix (NFLX) saw shares drop off. Part of the reason is ...
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Buy This Financial Market Winner Amid Market Pullbacks
With markets now decisively off their most recent highs, uncertainty is rising in markets. We don’t know how long or how deep a market pullback will go. Typically, in the absence of a major crisis, the pullbacks aren’t too bad.
That can give investors an opportunity to buy great companies at more reasonable prices. With earnings season underway, investors can also buy a company after reporting a fresh update on their operations.
One market winner here could be asset managerBlackstone (BX). The ...
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Use Market Pullbacks to Buy Quality at a Reasonable Price
After its 10th longest winning streak in history, the stock market has finally pulled back. The S&P 500 sank to the 50-day moving average, a sign that the uptrend may be over. However, the market often has small pullbacks of this nature.
These pullbacks cause investors to unwind leveraged positions, take profits, and look for new buying opportunities. Pullbacks are healthy, and typically happen a few times per year.
With the recent pullback occurring at the start of earnings season, there may ...
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Buy the Earnings, Not the Uncertainty
Markets hate uncertainty. An increase in uncertainty is a nearly guaranteed way to ensure that a company’s shares decline. Big uncertainties about the economy or geopolitical events can rattle the markets.
The reverse is also true. Investors pay up for certainty. That’s a premium that investors can avoid by buying great companies when they’re still contending with uncertainty. One way to avoid uncertainty is to look at facts of a company that are certain, starting with its earnings.
In particular, the trend ...
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