Stocks To Buy

Rising inflation has brought down stock values as uncertainty has increased. But a number of companies are able to raise prices and pass on the costs of inflation to their customers. That makes these companies able to maintain or even grow their profit margins during multi-decade high inflation. Once markets stop their current downtrend, these companies could continue to pay off and reward investors in the future. Consumer goods companies are best positioned for this trend. In this space, one leader isClorox ...
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A company’s management can make or break a business. Some managers are so good that they can even become household names. Most aren’t so lucky. That’s how rare that quality is. In today’s markets, with nearly everything selling off, great companies with strong management are seeing their share price sag even if they’re setting up their business to prosper with the next economic turnaround. One case in point is Jamie Dimon, CEO atJPMorgan Chase (JPM). The bank has sagged nearly 30 percent ...
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Markets can turn on a dime. One piece of good news, whether from earnings reports, the Federal Reserve, or a change in government policy could turn around the current market fears. While there may be more downside first, that just gives investors a few extra weeks or even months to buy great companies at reasonable prices. That’s especially true when buying shares of consumer goods companies. These stocks tend to trade at a premium, but can become a reasonable value in ...
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In a bear market, good stocks will be thrown out with bad. And high growth names will be heavily discounted, while even those that can continue to grow will also face a downturn, even if things are going well. Investors can use bear markets to buy both growth names and value names at a relative discount to where they’ll trade once the next bull market is underway. Investors looking for bargains now could find one inWatsco (WSO). The company is a leader ...
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Some stocks are cyclical, moving up and down in a somewhat predictable manner. Other companies tend to have steadier returns over time, making for a reasonable investment for the long haul. Sometimes, however, a cyclical company can develop in a way that allows it to undergo a structural change as well. That’s where a new product or service creates substantial new value. It may create a new cycle, or simply break the pattern of trading in one. Traditional automotive companies are breaking ...
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The stock market loves it when a company makes some kind of positive change. If a company announces a dividend or buyback program, shares will often rally heavily on the news. Another event that’s seen a jump in shares in recent years has been the announcement of a stock split. While it doesn’t change the total value of a company, it does change how many share investors have, and the price per share. And as long as the price is low, there’s ...
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There are many investment strategies that best work in a market that’s moving in a direction, whether up or down. In sideways markets, other strategies, often related to income, tend to perform better. While the market is likely in a decline, but is prone to some strong rallies along the way, only a few strategies offer a solid prospective return. One such strategy is arbitrage. It’s best known for trying to find immediate price differences in an asset across markets. However, for ...
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Financial stocks tend to be sensitive and even leveraged to changes in the economy. That’s been the case with a number of financial stocks so far this year. One niche in this space that has been hit the hardest has been in asset managers. These companies have been declining from the one-two punch of a slowing economy, and a decline in asset values as well. These stocks are now down about twice as much as the S&P 500 index. On an economic ...
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