12513

Consider Growth Plays Nearing Value Territory Amid This Market Selloff

Every market selloff creates an opportunity to buy growth names at a big discount. Typically, investors start discounting growth when a crisis starts, so faster-growing companies sell off more. Growth comes in a variety of sectors and can be measured in a few different ways. Besides looking at obvious big-cap tech names on a selloff, other growth names could deliver market-beating returns at today’s prices. One such potential winner isFive Below (FIVE). The retailer that lists all its products for $5 or ...
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12509

Defensive Plays with a Domestic Focus Could Perform Strongly in Today’s Environment

The past few weeks has seen a flurry of US companies announcing the termination of their business in Russia. That will impact the bottom line of some companies more than others, given the state of Russia’s economy. For some players, like fast food operations, the loss of the Russian market can have a big impact. For other sectors, there may not be much more than a symbolic gesture. One surprising winner in today’s environment could beThe Wendy’s Company (WEN). The fast-food chain ...
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12501

Uncertain Economic Outlooks Play Well for Discount-Themed Plays

With high inflation, rising interest rates, and a geopolitical drama unfolding, there’s a lot of uncertainty in markets right now. It may not take much for the economy to potentially slip into a recession, even as some see low odds of that occurring. When markets get uncertain, investors get defensive. One way to stay on the offense is to buy companies that have built a business model around being a discount player. In the retail space, one such name isDollar General (DG) ...
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12493

Rising Interest Rates Won’t End the Boom In this Sector (For Now)

For the first time since 2018, the Federal Reserve has raised interest rates. With yields at just 0.25 percent, however, it’s unlikely to do much more than start to cool the high inflation rates we’ve been seeing over the course of months. Some traders see a number of sectors traditionally slow down when interest rates rise, and have started to place their bets accordingly. However, while history often rhymes, it doesn’t usually directly repeat itself. One case right now is the housing ...
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12487

Don’t Bet Against Global Consumers and Buy Quality Companies on Sale

The stock market decline has caused nearly all companies to drop. That means that even strong global companies are trading at their best valuation in over a year. That’s particularly true with consumer discretionary firms. While a market pullback may bring some traders to a company like a grocery store, consumers are still going to need other products, even if at a slower pace compared to a roaring economy. As the economy recovers, these companies should recover handily. A number of such ...
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12480

Time to Buy a “Blood in the Streets” Play

The stock market pullback is getting ugly. With pullbacks deepening into corrections, investors want to know where to go for the best returns on the market’s next rebound. Historically, a handful of companies have used these dire and fearful market conditions to set themselves up for big profits when the outlook is much brighter. A select group of investment managers in particular tend to have a great track record for navigating tough markets. One such player isBlackstone (BX). The asset manager’s expertise ...
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12472

Buybacks Make This Value Play a Potential Winner on a Market Rebound

Share buybacks can add a lot of value for investors, provided that management only buys when shares look undervalued rather than indiscriminately buying at any price. Since share buybacks can increase earnings per share, even when a company doesn’t increase earnings. As a result, many companies have embraced share buybacks, but only a handful have been able to responsibly buy back shares and avoid the temptation of overpaying just to keep a share price high. One company that’s done buybacks right isBerkshire ...
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12465

A Higher-Margin Twist on Rising Commodities Looks Attractive Here

Commodities are taking off as investor interest soars. All sorts of raw goods from metals to agricultural to energy commodities have been rising. But investors who look beyond the raw commodities to more advanced materials could be ahead of the curve on this move. That’s because materials companies tend to be good about raising prices to stay ahead of commodity moves. And they tend to have a built-in profit margin that keeps them going when times are lean. That’s why specialty material ...
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