14691

Caution May Lead to a Buying Opportunity for a Leading Company

Earnings season is in full swing. And investors can once again see good companies falter on less-than-perfect quarterly news. For investors looking beyond the quarterly sprint, however, it may open up some reasonable buying opportunities. That’s true for industry-leading firms. They tend to have higher expectations, and any market disappointment could lead to a buy, even if it’s just a slight discount to where a company would otherwise trade. One great company that often trades at a premium isVisa (V). The credit ...
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14685

This Industry Leader Just Knocked Out a Major Uncertainty

Companies are impacted by any number of uncertainties. Investors who wait for completely clear skies often miss out on the opportunity. But buying when things are starting to turn around can offer the best returns relative to the risk. That’s especially true when buying shares of industry leaders. Taking advantage of a short-term fear can be the best way to get the optimal price for a company’s shares. The most recent industry leader getting a big uncertainty off the table isUnited Parcel ...
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14678

There’s Always a Value Play in a Growth Trend

This year’s market returns have been heavily driven by companies working on artificial intelligence (AI). That includes big tech companies in the hardware and software space, as well as smaller companies with a hyperfocus on the new technology. While that trend is playing out, the market has picked the top players in the space, even with dozens of companies working on the trend. Investors who buy into these lesser-liked stocks can benefit from the long-term trend of AI, while also getting ...
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14669

Boring Companies Could Give Your Portfolio Safety and Growth Now

One of the truisms about investing is that holding shares of companies with steady, but low growth over time can lead to good results. While it may lack the excitement of getting into a top tech trend, having a few stocks of boring companies can round out a portfolio. These companies can include any good or service, but typically the most boring companies offering great returns will provide a service to businesses rather than having a consumer-facing operation. For instance, most consumers ...
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14661

Litigation Fears Can Create Buying Opportunities

The threat of a big lawsuit can cause a company’s valuation to tank. In an extreme case, like the tobacco companies in the 1990s, it can create an exceptional value, even at the risk of a further potential loss. Likewise, even companies that have made positive moves towards resolving big litigation can get a reasonable value. That’s because lawsuits take time to play out, as do the settlements for such lawsuits. Recently,Johnson & Johnson (JNJ) came under fire for litigation regarding its ...
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14655

Invest With Companies Pushing for a Top Customer Experience

Some sectors of the market are competitive with a number of companies working hard for market share. More mature industries often have fewer competitors, but can increase their business by improving the experience for customers. That’s especially true when it can do so without significantly raising prices or otherwise having a trade-off. By improving customer experience, a company can build long-term brand loyalty. That’s hard to measure in terms of a dollar valuation, but it does make a great company stand ...
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14650

There’s Strong Value in Last Generation’s Growth Trends

Market trends change over time. The market often gets hyped over tech stocks. But that’s changed over the years in everything from lasers and personal computers to internet stocks to today’s interest in artificial intelligence. Many trends continue to play out, even after there’s been major adoption. And playing to that trend could lead to market-beating returns in an ignored space offering considerable value. For instance, the United States is still upgrading its infrastructure. And more rural areas are still connected to ...
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14643

Big Tech Is Back in Favor: Follow the Trend

Last year’s big market losers have been this year’s winners, at least so far. However, once a trend is underway, it’s unlikely to change unless there’s a big reason for doing so. That’s why a number of big tech companies look attractive going into earnings. That’s particularly true of companies that haven’t been associated with the rally in AI stocks this year. These companies likely have more upside and less volatility in the second half of the year. One clear example isNetflix ...
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