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 is ...
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Use Uncertainty to Grab High Dividend Yields

Companies face uncertainties all the time. But when a big new fear comes out, prices drop first, and take time to recover. That can cause dividend companies to see their yields soar. Investors who take advantage of that opportunity can buy high yields. With a high dividend yield, investors get paid to wait for shares to recover. And if the company is operationally sound, the dividend can even grow during a time when the market has some sort of fear. Right now, ...
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Brands Continue to Reward Patient Investors

In a bull market, investors want what’s going up. But fast-moving stocks can also quickly move down in a bear market. However, companies that have built strong brands tend to mostly just go up over time, even if the gains are more slow-and-steady. That’s why investors should consider strong brands as part of their portfolios. Especially when companies with strong brands are able to beat on earnings and raise estimates in uncertain times. For instance, PepsiCo (PEP) is best known for its ...
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Invest With Companies Building Smart Partnerships

Companies regularly announce all sorts of partnerships . Most are fairly humdrum affairs, and are hardly worth the ink spilled in a press release. But a big partnership that has the potential to create billions of dollars in value is rarer. When that happens, it may be prudent to look at that partnership, and determine which company is the better buy now. Sometimes, it may even be both. That could be the case with the deal inked between Domino’s (DPZ) and Uber ...
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Buy Companies that Regulators Slap on the Wrist

Today’s regulation heavy world means that companies are often in the spotlight. That can include for actual wrongdoing or perceived wrongdoing. Big companies tend to get hit with seemingly large fines. But for companies that are large enough, even a big fine amounts to little more than a slap on the wrist. Investors in these companies may see a few hits from time to time, but it’s also a sign that a company can handle fines and fees. One recent fine was ...
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Innovation Can Drive Profitability Higher

While most investors are focused on big tech names right now, conventional companies also benefit from today’s tech trends. Companies that can integrate new technologies can provide better service, and potentially even keep costs down. A company that has the lowest costs in the industry tends to have low profit margins. But it also has a big market share, as consumers are largely price-focused. That can still lead to great returns, especially as new technology improves profit margins. Retail isn’t known for ...
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Companies With Little Competition Offer Consistent Profits

Each industry is different. Some have many players. Others have just a few. Most industries should consolidate over time. When there are just a handful of players, competition becomes less fierce, as the remaining companies look to maintain their market share. That can create companies that remain consistently profitable over time. And when the market has an inevitable downturn for that sector, create a buying opportunity. Although the headlines show consumer spending slowing at stores, they’re still spending on other things, like ...
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Keep Your Portfolio Perking with Strong Brands

Investors looking for opportunities now may want to let hot stocks cool off a bit. And they may want to look for stocks that are coming off a bottom and ready to move higher. This shift away from what’s done well to what’s likely to perform well ahead is a crucial part of investing. And it can take advantage of how the market may mostly move up over time, but different sectors tend to lead at different times. For instance, while tech ...
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