Use Weak Markets to Buy High-Quality Names

The market remains well off its summer highs, and may be in for a few more rough days of trading before moving into an end-year holiday rally. That means investors have a chance to buy companies well off their highs. With so many economic uncertainties, buying great companies that lead their industry look like the best bet here. They won’t pop as much in a rally as lesser-known names, but they’ll also tend to hold their value and compound safely over ...
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Look Beyond Headline Names and Profit with Key Suppliers

The stock market usually moves higher due to just a handful of companies. Today, that’s centered around big-cap tech stocks working on artificial intelligence (AI) programs. In time, that may change. But while big names get the attention, companies that provide key services and supplies can also be big winners. That’s especially true after the big names have gotten the market’s attention and have run higher. Investing in suppliers can also provide useful signals as to the health of the economy. For ...
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Weight Loss Drugs or Not, Sugary Foods Aren’t Going Away

The past few weeks have seen several snack food companies take a big hit. Part of the move may have been from rising bond yields, which compete with dividend yields. Another factor is the use of Ozempic, a weight loss drug. Either way, shares of these companies have dropped off considerably in recent weeks, and now look like long-term buys. Weight loss drugs are nothing new, and many will still want to enjoy snacks or satisfy their sweet tooth. While headlines have ...
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Stick With Companies Beating Earnings Now

The market’s wild swings in the past few weeks reflect some economic uncertainty. Rising interest rates are starting to take their toll on the economy. More importantly for investors, rising bond yields tend to compete with dividend-paying stocks in the short-term. That can create some opportunities for investors. Especially if they focus on industry leaders that have proven that they can still grow amid the current uncertainty, and can continue to grow their dividends. PepsiCo (PEP) beat expectations in its most recent ...
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Keep Riding this Commodity Boom with the Sector’s Top Names

Commodities were out of favor with the market for the 2010s, but have started to see a comeback since 2020. Typically, commodity markets move in a long-term trend, where decade-long moves can play out. That gives today’s investors in the space ample time to benefit from the trend. Like most trends, it will start slow and build up, ending in a speculative burst. That makes now the optimal time to start buying in. One strong part of the commodity space is the ...
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Invest With the Middleman for the Best Profits in the Service Industry

In many transactions between a buyer and a seller, there’s a middleman. For a customer, that may mean shopping at a store, with the store making a small profit for stocking goods from dozens of various providers. While that business model has low profit margins, the margins can improve when it involves a service. A middleman can find an optimal deal, and still make a great return overall. One such middleman is Booking Holdings (BKNG), the parent company of travel services company ...
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In Rough Markets, Put Safe Dividend Payers First

The market has dropped over 5 percent in just the past few weeks. Bond yields have soared, which have made bonds more attractive compared to dividend-paying stocks in general. But while bond yields fluctuate over time, the price paid out doesn’t change. For dividend stocks, being able to grow the payout over time tends to lead to great returns. That’s because higher payouts tend to lead to higher share prices. RPM International (RPM) isn’t a household name. It’s a specialty chemical manufacturer ...
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This Cash Flow Giant Is Set to Expand Its Lead

The past 20 years have seen a major shift in how consumers view advertising. With fewer eyeballs looking at physical newspapers and going online, investors have been able to profit from the shift to online advertising. Today, there’s the prospect of even bigger profits for many of these industry leaders. That’s due to the ability to better tailor tools for online advertisers using artificial intelligence software. Social media giant Meta Platforms (META) is adding in new AI tools that will give advertisers ...
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