Retail Enters the Buy Range as Companies Continue to Pass on Guidance

The latest retail company to report earnings has continued the trend of failing to report guidance. And that’s once again spooked the market into a selloff. With where stocks are at right now, the move has created some opportunities to buy near the lows of the year. The latest player? Target (TGT). The company earned $2.73 per share for the last quarter of 2020, a massive jump from the $1.65 per share in the fourth quarter of 2019. Yet despite those massive ...
Read More
|

Tech Demand Continues to Drive this Commodity Higher

The digital age, driven by software and other technology, still requires some physical gadgetry to work. That physical tech requires certain components to work, which in turn are driven by certain commodities used in manufacturing. One space that has gotten a large amount of attention is lithium. It’s a key element for the technology in the latest generation of rechargeable batteries, particularly those for electric vehicles. So it’s no surprise that with a pullback in recent weeks, shares of Albemarle (ALB) are ...
Read More
|

Retail Rebound Plays Look Attractive Relative to the Risk

Most companies looking to survive in the past year moved heavily towards ecommerce sales. However, a few companies have a business model known as the “found treasures.” They offer steep discounts compared to the non-sale price, but the catch is that buyers have to find them by scrounging through a physical store. One such play is Ross Stores (ROST). Shares are just now climbing back to pre-pandemic levels. And shares look like a bargain as shoppers look forward to perusing those ...
Read More
|

This Energy Tech Play is Getting Crushed After Earnings, But Will Likely Bounce Back

Earnings season continues to offer traders a number of new buying opportunities in great names. That’s even the case when a company declines due to technical reasons rather than fundamental ones. Take the case of Plug Power (PLUG). The hydrogen energy company sold off following an earnings miss. The miss occurred as the company recognized charges from the vesting of warrants. The warrants vested faster than expected in part due to the rising stock price. Talk about being punished for being successful! ...
Read More
|

Weak Short-Term Growth Hits One of the Hottest Plays in FinTech

Payment processing company Square (SQ) has had a tremendous year. But the market wasn’t too impressed by the company’s recent earnings numbers. While it beat on both revenue and profit expectations, the rate of growth appears to be slowing. That’s led to a selloff in shares, adding to losses from the tech selloff earlier in the week. However, those numbers overlook some more powerful trends in place. For instance, the company saw its revenue derived from Bitcoin rise from over $100 million ...
Read More
|

Outlook Uncertainty Spells Bigger Profits in this Retail Dominator

One lingering trend from the pandemic is more uncertainty than usual from companies when they report their quarterly earnings. Any time a company decides not to provide forward guidance, the market will take the stock down—even if it probably doesn’t deserve it. Take, for instance, Home Depot (HD). The home improvement retailer beat on earnings and revenue expectations—with revenue up 25 percent in the past year. Yet shares dropped as the company didn’t offer guidance. Besides the strong beat, the company is ...
Read More
|

Cloud Profits Could Turn This Tech Giant Back to Rapid Growth

Tech companies are able to reap massive profit margins thanks to scale and costs. For instance, the cost of writing a piece of software is fixed. If a company can sell an additional copy, its marginal cost of production is minimal. That’s also true of other tech services as well. It’s why a number of companies building out their cloud capabilities are able to reap massive profit margins. That’s why it’s no surprise that Oracle (ORCL), a Silicon Valley giant, has been ...
Read More
|

Food Inflation is Rising, making this Equipment Play a Buy

There’s always a good profit to be had in the “picks and shovels” of any trend. Companies that provide infrastructure or supplies can profit from a number of ways that other firms may not be able to do. One trend is rising food prices, which you may have noticed at the shelves of your local grocery store. Rising crop prices are pushing up the final cost of food as well. Investing directly in agricultural commodities is a headache for a stock investor, ...
Read More
|