15438

Bad News May Prove Good News for This Company

Wall Street is active with plenty of mergers and acquisitions. Even during economic downturns, some companies look to combine forces. However, history isn’t kind to most mergers. That’s because the acquiring company has to either issue a lot of stock or go into debt. Issuing too much stock dilutes shareholders. And adding on debt can reduce a company’s ability to deal with unforeseen circumstances. That’s why the end of a potential merger may actually be the best outcome for a company.. ...
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15434

Follow the Profits in the Financial Sector

Big banks have kicked off earnings season. And there’s been a mixed result overall. Most banks are taking a more conservative approach, as benefits the Fed’s “higher for longer” strategy on interest rates. However, while bank lending activity is down, the market’s strong return is helping banks that have a large wealth management division to make better profits right now. That’s a trend that could likely continue. It’s a trend that bodes well for Wall Street investment bankGoldman Sachs (GS). Overall earnings ...
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15430

Oversold Large-Cap Plays that Haven’t Run Yet Can Be Market Winners Next

The market has been in rotation mode for a few weeks now. High-flying tech stocks have been underperforming as other sectors have been beating the market instead. If that trend continues, then many sectors that lagged in last year’s rebounding stock market could trend higher. That means a number of companies in traditionally slower-moving parts of the market could have above-average returns in the months ahead. For instance, with the market up 20 percent over the past year,Comcast (CMCSA) is up about ...
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15421

This Leading Brand Will Continue to Power Higher

Many stocks aren’t near their all-time highs, even as the market headlines are. That could be an opportunity for investors, particularly those who focus on undervalued industry leaders. Leaders will typically lead the rest of the sector higher once a turnaround starts. They also tend to sport the best profit margins. And for dividend-paying sectors, leaders tend to offer the best yields. The restaurant space lagged last year, as rising interest rates weighed on this defensive part of the market.McDonald’s (MCD) rose ...
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15417

Look For Growing Companies that Can Move Up

Investing in industry leaders tends to work well for investors over time. But in any industry, upstart companies may work to build themselves up into a leader over time. Finding those growth plays can lead to great investment opportunities. That’s true for sectors that have a low barrier for entry, and where a competitor has the ability to create some big differentiation. These companies can likely see years of growth as they compete to become the industry’s largest. One potential example isCasey’s ...
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15412

The Thawing Housing Market Bodes Well for Underperforming Industry Leaders

2023 saw the housing market freeze up. Existing homeowners didn’t want to move, as they would have to pay significantly higher for a mortgage than on their existing home. That resulted in a tight housing inventory, which helped keep home prices high. 2024 will likely see interest rate cuts. Mortgage rates have already dropped, and some potential sellers are hitting the markets. With the housing market thawing out, potential sellers may start looking to spruce up their homes. That bodes well for ...
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15406

Smaller Players Will Likely Win This Year’s AI Battle

Last year, the market was obsessed with the AI theme. While there’s been some market rotation, it’s clear that the AI trend is here to stay. But given how much the big players in the space have run, investors may be better off buying smaller names. For the AI hardware stocks, that may be a tall order. However, there are plenty of AI hardware stocks that still have plenty of room to run. One such potential winner isMarvell Technology (MRVL). The chipmaker ...
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15401

Improving Profit Margins Can Mean Big Bucks for Shareholders

Investors have many ways of looking at a company. Ideally, a company will show growth. But a company can do much to show growth, and even pay up to do so. That could mean a winning share price in the short-term, at the risk of long-term dangers to a company. That’s why investors should look for companies that can grow and improve their profit margins over time. That’s a sign of a company getting better at doing its job, and having ...
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