16311

Grab Safety with a Dash of Growth

Markets are likely to trade sideways over the next few months, and may face another pullback similar to the one seen in August. Investors can use a pullback as an opportunity to buy stocks on a drop. Or they can look for steadier stocks that can pay a sizeable income while continuing to trend higher. Many stocks are still near 52-week highs. A few of them are also companies that offer dividend growth over time. Since over an investment lifetime, reinvested dividends ...
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16306

High Margin Companies Can Deliver Great Returns Over Time

There are many ways to measure a company’s valuation. One is to look at a company’s earnings, and how it trades relative to its price. Another factor is to look at a company’s profit margins. Some companies, such as manufacturers, have high costs of production. It’s hard to get a great profit margin. But other companies, like software-related businesses, can see great returns. That’s because the marginal cost of making an additional copy of software is essentially zero. Investors have plenty of ...
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16302

Smaller Chipmakers Can Still Take Over Market Leadership Here

The stock market could potentially continue higher in the months ahead, this time led by smaller companies than just a handful of large-cap giants. That includes smaller tech companies that can also supply hardware for the AI boom. While the boom will eventually end, this quarter’s earnings reports across corporate America suggest that the AI spending boom is alive and well. And that plenty of other companies have yet to see the biggest benefit from this trend. One potential winner is chipmaker ...
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16294

This Stealth AI Play Still Has More Room to Run

The AI rollout continues. Earnings season indicates that many companies are continuing to invest and build in AI projects. While that growth may slow down in a few years, for now, the trend is on. That means investors should look to buy AI-related plays on any reasonable selloff. Finding high-growth companies and buying them after a quick 10-20% pullback is one way to play the AI trend without buying in at the top. One AI-related play is the growth of data centers ...
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16289

As the AI Trend Shifts, Look for High Profits

AI stocks remain hot, although it’s clear that many companies expect sales to start to cool off. The initial wave of AI buying will likely be over by the end of next year. That still offers investors plenty of time to make a little more out of big hardware plays. But it also suggests that investors may fare better investing with software companies. That’s because software tends to be a high-margin product. Even better, many software services generate recurring revenues through monthly ...
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16285

The Ultimate Slow-and-Steady Stock Will Continue to Trend Higher

Amid a strong showing for tech stocks, the recent market rotation has allowed other sectors to come into their own. That includes companies that continue to grow, even without necessarily investing heavily into the AI space. Overall, companies with slow-and-steady growth should be able to keep on moving higher. And investors who buy into these higher-trending stocks may see better returns than investing in AI-related tech stocks after that space has had its big run. One company moving higher is Berkshire Hathaway ...
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16280

Soft Landing or Not, This Sector Is Poised for Further Growth

The stock market is made up of many sectors. Most investors focus on whatever sector is hot right now. For nearly two years, that’s been tech thanks to the rollout of AI. But tech returns have slowed in recent quarters. Other sectors are starting to show stronger returns. Investors who shift more towards these other sectors can buy into a more reasonable value right now. And they can also get a higher income than in tech plays. Either way, that can help ...
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16276

This Leading Green Energy Play Could Prove an Election Winner

Most green energy stocks have been out of favor with the market over the past few years, thanks to low conventional energy prices. But with the prospect of a renewed interest in green energy and the upcoming election, these stocks may find support. In the green energy space, only a handful of players have been able to thrive on their own. One of them is a major play on the continued rollout of solar energy. That leader is First Solar (FSLR). It’s ...
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