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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Big Tech Could Grow Further With AI, Making This Company a Top Buy

While big tech stocks have had a strong start to the year, and may trade flat or lower in the coming months, many can move higher over time. That’s because these companies have the size and scope to roll out AI technologies and best improve their performance. And a small improvement in a big company can lead to billions of dollars in increased revenues or even profits. That could push shares even higher. That’s likely why companies like Microsoft (MSFT) have more ...
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Buy Ahead of Profitability for Better Returns

When a company is out of favor with the market, it has to prove itself. That can mean successfully undertaking a turnaround, or selling off part of the company. Most of the time, it means streamlining the business and moving towards profitability. For companies that aren’t profitable right now, those that can embrace new trends and grow the business over time are in a great position to surprise investors with positive results later that aren’t expected today. One such potential play today ...
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This Tech Trend Remains Out of Favor, But May Prove a Speculative Buy Now

Investors have a tech flavor of the year, and it’s artificial intelligence (AI). That’s in contrast to past years, when investors have been enamored with cloud services, cryptocurrency mining, electric vehicles, or any other number of trends. Those trends have staying power too. And since they’re now not the market’s favorite, it’s possible to buy into long-term potential winners at a better price. The best time to buy these tech trends isn’t just when they’re out of favor, but when they’re ...
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Don’t Overthink the Power of Buying a Strong Brand Out of Favor

When it comes to investing, investors are often their own worst enemy. A falling market may lead to fear, and cause someone to sell when it’s a great time to buy. Likewise, a one-time earnings report may not mean much in the long haul, but it could create a buying opportunity. That’s particularly true with regards to companies that have strong brands. That’s because the long-term power of owning a great brand pays out over time. Investors didn’t like the mixed earnings ...
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Don’t Miss this Overlooked Part of the AI Revolution

The past few months have been great for AI stocks, particularly those working on generative AI software. That’s led to the rise of several prompts that can make work easier, particularly in industries that rely on intellectual capital rather than labor. However, the trend will move toward labor too. That’s because AI is a key component for making automation effective. Today, automation largely helps scale up industrial production. That trend could accelerate in the coming years. One way to play this trend ...
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Stick With Companies Cracking Down on Member Sharing

Markets were skeptical when Netflix (NFLX) started to crack down on users who shared their account information. The company even tried the policy last year and failed. But this time around, it’s clear that more users will sign up for the service. Other companies with a membership model are taking note. Only those who pay should get to use the service, rather than acting as a guest for a paying member. One membership club cracking down is Costco (COST). The retailer will ...
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