Stocks To Buy

Economic data remains confusing. While the economy is slowing by several measures, we’re still seeing signs of a strong economy, such as the labor market. One trend that’s becoming more clear is that spending is declining on goods, but not necessarily on services. That’s leading to a drop in retail-related stocks. And while a slowing economy will mean a further slowdown in the sale of goods, it won’t drop to zero. Consumers still need to consume, if only for basics such as ...
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Investors looking to consistently outperform the market should follow market rotation. That simply means avoiding sectors that have recently performed well, instead opting to buy sectors that have been out of favor. For the month of May, tech stocks dominated. Software-related tech plays saw a nearly 10 percent rise. On the other end of the spectrum, the energy sector was the loser, with about a 10 percent decline. Since energy prices tend to fluctuate over time, investors interested in the space should ...
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While the stock market tends to rise over time, within that cycle there can be different moves. Recently, tech stocks have been the big winners. That’s left other sectors underperforming. However, that will likely change in time. And when that happens, companies in overlooked or disliked sectors can become the big winners moving forward. A number of sectors look oversold and potentially ready to move higher in the weeks and months ahead. One area is casino stocks. While they’ve largely rallied so ...
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When stocks are rallying and interest rates are low, it’s easy for companies to expand by either selling more shares or taking on debt. But selling too many shares dilutes existing shareholders and may spark a backlash. And when debt comes due and has to be refinanced, markets may balk. So companies that are improving their balance sheet now could be big winners down the line. One area where balance sheet improvement could help boost shares are with big media companies. There’s ...
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The market has been excited about AI stocks for six months now, since the release of ChatGPT. Dozens of companies have announced plans to integrate AI hardware and software into their businesses. And it’s one part of the market where investors have been more than happy to send cash now. That’s led to a big rally in tech, that’s helped unwind most of 2022’s bear market. At this point, it’s time investors looked for AI stocks with a smaller market cap. That’s ...
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Most industries tend to consolidate over time. Retail is no exception, as many stores have gone by the wayside. Today, most big box stores compete with online retailers in some capacity, and those that run a niche tend to have the brick-and-mortar business to themselves. That’s allowed these companies to continue growing, which can benefit shareholders. It’s an even better benefit when they’re also generous with ever-increasing dividend payouts. Among the big box retailers, electronics chainBest Buy (BBY) offers the highest dividend ...
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One of the most valuable things a company can do is become a key provider of products or services to the point where they can raise prices without losing much, if any, market share. This pricing power can be crucial for beating inflation. And it can also mean a good investment for shareholders, as being able to raise prices ensures that profit margins stay high. One industry leader with pricing power isCorning (GLW). The specialty glassmaker just raised prices by 20 percent, ...
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Many companies were caught during the pandemic as borders shut down. Without reliable just-in-time delivery systems operating, they’ve been working to diversify their manufacturing operations. For higher-level goods such as semiconductors, this means reversing a multi-decade trend to once again make goods in America. Signs of this trend have just started to pop up, and they’ll likely increase in the years ahead. While there may be higher labor costs to manufacture stateside, most businesses see the development as a positive one. For ...
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