Low Expectations Can Drive High Returns
One common investment theme is a reversion to the mean. That’s a fancy way of saying that stocks that have outperformed the market will often come back down. And stocks that have underperformed the market will have their time to shine.
With a big rally in tech now spreading to energy and the banks, a number of stocks have still avoided making new all-time highs. One area in particular looks interesting thanks to its low expectations: The defense sector.
It’s a space ...
Read More About This
Read More About This
Big Bank Earnings Season is Here, and Traders are Betting the Party Isn’t Over
Bank stocks and financials in general slumped more than the average stock during the market selloff. A decline in economic activity means fewer new loans being made, and old loans face a rising risk of default of some sort.
However, with the economy opening again and with interest rates low, investors see further profits in the banking sector. With the space starting to announce earnings next week, further bullish bets are being made.
One such company isBank of America (BAC). The megabank ...
Read More About This
Read More About This
ESG Is Here to Stay—And Even Big Cap Companies Know It
Environmental, social, and governance issues, or ESG, has become a popular trend in investing. A great company can balance those needs while still providing sustainable long-term growth that rewards shareholders.
Even some bigger players have made major strides along the way, including those often considered a threat to the environment or social issues. One surprising play is a name we’ve seen before—and a stock that’s still an attractive buy today.
That company isWalmart (WMT). While it’s been derided on environmental grounds for ...
Read More About This
Read More About This
A Relative Bargain in the Chip Space Ready to Soar
Technology companies continue to push the stock market higher. Finding a bargain, even a relative one, is a tough one. That’s especially true with the chipmakers, which are firing on all cylinders.
But for those companies that can provide both the hardware and software, higher profit margins are likely. That points to a possible bargain looking ahead. That’s also why it’s no surprise that Piper Sandler just upgraded one of the biggest names in the space.
The company isBroadcom (AVGO). Shares may ...
Read More About This
Read More About This
Opportunities in Retail Remain as Ecommerce Sales Slow
Early sales numbers for the last quarter of 2020 are starting to come in. There’s some good news and some bad news. The good news is that sales are rising. The bad news? The rate of the rise is slowing down.
That’s understandable. Many major retailers were able to see sales rise thanks to increased ecommerce trends. As customers have completed that shift, the rate is starting to stabilize. However, there’s still some trading opportunities as a result.
Case in point:Costco (COST) ...
Read More About This
Read More About This
Apple Shares Still Have the Midas Touch
Analysts are upgrading shares ofApple (AAPL) ahead of earnings. Shares of the tech play are still off the highs set back in September, but look set to continue higher.
While earnings day itself may play a wild card, so far, all the early indicators are for an earnings beat. The first hint is the company’s $1.8 billion in revenue on the App Store the week of Christmas, a record for the firm.
Second, the company’s production numbers on the iPhone 12 suggest ...
Read More About This
Read More About This
An Oversold Play on a Beloved Tech Niche
Nothing moves in a straight line. For investors who make short-term bets on a company, this fact can produce large losses quickly. But for investors willing to play trends, waiting for a pullback on a stock in a long-term uptrend can prove worthwhile.
That’s especially the case when a short-term drop has no apparent rationale behind it. That can happen fairly often in the tech space, as investors look to lock in profits quickly.
That appears to be the case withQuantumScape (QS) ...
Read More About This
Read More About This
This Pandemic Beneficiary Has Room to Move Higher
A number of companies were obvious beneficiaries from the pandemic. Work-from-home trends were the clear winners. But consumer spending changed in other ways as well.
For instance, spending on business apparel dropped and sales rose on more comfortable apparel (especially items that wouldn’t be seen during a Zoom meeting). But despite the rising trend of athletic and leisure ware, many of these names have seen strong growth but a relatively poor stock performance.
That seems to be the case withUnder Armour (UA) ...
Read More About This
Read More About This