Stocks To Buy

Inflation can be an insidious force, making investing a challenge. That’s because there are some areas where customers have to spend more due to inflation, whether they like it or not. Other businesses are more elastic, so higher prices can lead to a big drop in volume. Companies that have strong real demand now can likely perform well in the future as inflation starts to wane. The trick is in finding the right trend to track amid today’s high inflation. One trend ...
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When an industry is new, it may result in dozens or even hundreds of companies creating a product or service. As it matures, an industry will tend to consolidate into just a handful of players. The classic example of this is the automotive industry, where a number of brands either went bankrupt, or were absorbed into what are now known as the “big three.” Other industries are consolidating now. Finding the best values out there can mean getting into companies poised to ...
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Many companies have been hit hard by the pandemic as they’ve failed to pivot to business strategies better suited to events. However, companies that have made the pivot have been faring better. Some are more profitable as a result, while some are still building out the infrastructure to succeed. That’s leading to a number of companies showing growth now, or in future quarters, that may be being discounted by today’s fearful markets… creating a solid long-term buying opportunity. One company still in ...
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Some companies are simple, offering only one product or service. Others have many parts. And in bear markets, complicated companies may end up trading for less than the sum of their parts. That can attract value investors, as well as activist investors. Investors who can determine the true value of a company with a large number of different moving parts can potentially see big returns when there’s a divestment, successful activist investment, or even just a market turnaround. One company that may ...
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Valuations on tech stocks have been hit hard in the past year. That’s because a number of companies have shown that their growth projects were unable to handle a slowing economy. Other tech firms have had no such problems, however, even if these positive developments haven’t been reflected in their stock price. One way to look at how these companies are performing is by looking at how their billables are changing now. If a company is continuing to grow its customer base, ...
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A few major themes have been at play over the past year. While tech stocks have largely sold off thanks to a decline in investors willing to take on risks, a shortage in the semiconductor industry has created a unique situation. These companies are poised for their best growth in years, yet are also trading at their best valuation in years. Investors who accumulate shares of these leaders now can benefit when that price trend changes. Among the semiconductor giants, there’s some ...
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This year has been challenging for investors. A slowing economy and high inflation are creating a poor outlook for markets. Yet buying during challenging moments can be a solid time to invest. That’s particularly true when investors sell as soon as skies are clear. Many companies are facing challenges right now. But companies with a long operating history of succeeding in different environments should get through today’s troubles with ease… although it may take some time. One company struggling now is Target ...
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Typically, it’s taken two quarters of negative GDP growth to officially mark a recession. By the time that’s announced, some short or shallow recessions are already over. We’ve seen two negative quarters so far this year, but many are looking to change the definition given the strong job market and other factors. As the definition of a recession seems to be changing, it might be a good idea to rethink the idea of a recession-resistant company. Those are typically firms that engage ...
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