Faster Growth and Buybacks Point to Strong, Steady Returns

Stock buybacks and dividends were slashed or eliminated last year. Many firms are starting to resume either or both, and point to which companies are likely to continue to fare well in the post-pandemic world. One company just reported strong growth following a merger, and surprised even more with the possibility that a buyback of up to $60 billion would occur within the next few years. The company? T-Mobile (TMUS). The telecom company merged with Spring last year, just in time for ...
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This Overlooked Software Play is Set to Reward Investors

Tech stocks may be off their lows, but traders aren’t quite ready to embrace the space quite yet. That’s resulted in a few relative bargains. Especially when a company is capable of posting massive growth right now. That’s the case with Oracle (ORCL). The software giant has been shifting to a subscription revenue model, which has made for stronger and more consistent earnings. Profits are now up 20 percent compared to a year ago. Besides trouncing on earnings, the company just boosted ...
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Recovering Economy Points to Increased Profits for this “Toll Road”

One of the casualties of the pandemic has been consumer spending—at least plus or minus any stimulus programs. That’s resulted in reduced shopping and reduced transactions. That’s made it tougher for the credit card networks. However, with a recovering economy and likely more spending across a larger number of goods and services, the traditional card networks are likely to see a comeback in volume. That’s why a number of analysts are upgrading the space. While newer Fintech companies still pose a threat ...
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An Unusual Blue-Chip, Post-Covid Play

Many blue-chip companies have been faring well in recent weeks—especially the ones outside of tech. A few companies that have been seen as typical safe-havens during a market crisis have fared a little worse this time around during the pandemic. One such area has been beverage companies. While people have to drink, they don’t have to at restaurants, which tend to have higher profit margins on beverages. While that’s one area that’s lagged, analysts are starting to get bullish on the space ...
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Big Box Retailers Oversold on Tech Meltdown

Markets are forward looking. And when looking at retail plays, they see things getting worse, not better, for a number of big-box stores. Why? Same-store sales trends. The big players saw a surge higher as mom and pop stores closed, and that trend may unwind slightly, which could hurt future trends. That’s led to a number of big-name retailers decline even after posting great sales and earnings numbers. The latest victim of this trend is Costco (COST). The warehouse giant knocked its ...
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Chipmaking Shortage Continues to Point to Profits

With the stock market in full meltdown mode, companies reporting great earnings numbers are being totally ignored. The chipmakers are one such place, where great earnings have been met with massive hits to share prices. While valuations may have been high going in to this correction, for growing companies dealing with more demand than can be met in the short-term, this looks like one of the first places in tech likely for a strong rebound. Case in point? Broadcom (AVGO). The company ...
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Tight Semiconductor Market Continues to Benefit Amidst Volatile Markets

Stock market volatility has been rising in recent sessions, and few spaces look immune to potential wild daily swings. For the semiconductor space, however, a supply crunch is likely to limit potential downside damage. That’s especially true for Micron (MU). The company beat on earnings estimates, and raised its forecast for the year for earnings, margin, and revenue. While shares sank when reporting earnings on Wednesday, and on Thursday's market meltdown, the longer-term uptrend looks intact. Shares have also benefitted in recent ...
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This Range-Bound Reopening Play Looks Set to Move Higher

Shares of rideshare firm Lyft (LYFT) are set to move higher yet again. That’s thanks to the company’s latest ride numbers, which are now on par with March 2020. Average daily rides are up 4 percent, and volumes are up 5.4 percent from the previous month. That’s a great trend, and one likely to continue to rise over time, as economies look to end restrictions and reopen. And with shares already near all-time highs, there’s room for a surge higher. The rideshare ...
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