‘Tis the Season to Play the Uptrend in Retailers

Just as the autumn months are weak for the market, the final few weeks of the year tend to bode well for stocks. They tend to fare best for retailers, amid the rush of the holiday season. December has historically made the difference for a retailer earning a profit for the year or not. Many retailers are starting to come heavily off their lows, but have more upside ahead through the holiday season. That’s especially true for the most beaten-down companies. Among ...
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This Trend Is Alive and Well, So Buy the Stocks Profiting From It

Markets often start to create narratives about different sectors. That can lead to some sectors flying high on hope, while others start to trade out of favor. This year has seen semiconductor stocks rally thanks to the rollout of new AI technologies. Other sectors have fared differently. Interest-rate sensitive stocks like utilities and telecoms have taken a hit. Media stocks have been out of favor. And so have many retailers, as consumers have focused more on experiences than buying goods. However, that ...
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Invest With Companies Looking at the Very Long Term

Wall Street is dominated with short-term thinking. Daily market moves and quarterly earnings reports can cause companies to make all sorts of moves that help the share price in the short-term, but not the long-run. That’s why investors should focus on companies that can deliver great returns over the long-term. That avoids much short-term uncertainty that tends to dominate markets. And it’s why long-term investors should be willing to pay up for a stake in industry leaders. One industry leader is ExxonMobil ...
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Higher Labor Prices are a Short-Term Problem

The past few years have seen soaring wages due to strong worker demand. Today, some workforces are pushing wages higher following the latest bout of inflation. While wins for workers sound bad for companies in the short-term, there’s a long-term benefit. Happy workers are more likely to stick around. That lowers the costs of hiring new employees. And a happier workforce is one that can be more productive and attentive to protecting a company’s brand. Recent pay deals include workers in Las ...
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Until Interest Rates Drop, Invest with This Trend

High interest rates have led to a standstill in the housing market. And it’s also led to car payments soaring, which in turn has reduced activity there. More parts of the economy could likewise freeze up as interest rates stay higher for longer. However, while some areas freeze up, opportunities can emerge in other parts of the market. Investors who lean into those trends now can likely see solid returns, even as other places continue to trend lower. For instance, Copart (CPRT), ...
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Buy the Overreaction to Poor Earnings

This earnings season came at a time of market weakness. That set the tone for how most stocks have fared. Companies that have beaten earnings haven’t had much of a move higher on the news. However, those that missed on earnings have been heavily punished. Fortunately, the earnings move could mean investors have a longer-term opportunity. That’s because a company that’s been hard hit from earnings may start to trend higher in the weeks ahead. Despite good earnings relative to the impact ...
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Invest With Companies Flipping to Profitability

Many companies go public before they’re able to fully earn a profit. Selling shares to the general population spreads around the risk, and allows a company to raise capital to fund operations. Once a company goes public, moving to profitability is key. The past few years saw a surge of early-stage companies going public, but many failed to grow and become profitable. Of those that have moved to profitability, chances are shares can move higher in the years ahead. One such company ...
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Buy Companies the Market Dislikes Ahead of a Year-End Rally

Investors have plenty of ways to play a seasonal rally for stocks. The past few weeks have seen stocks get hit hard to the downside, then surge higher. Highly volatile stocks have led the way in both directions. Going into the end of the year, companies that are disliked tend to perform best. That may be because they’ve gotten more oversold than other stocks, or are more prone to being squeezed higher. Either way, investors can buy disliked stocks for a ...
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