Stocks To Buy

Investors have started to shift away from tech companies over the past few months. The trend is still an early one. It means that the Magnificent Seven stocks, which have led the market higher for nearly two years, may finally take a breather. In their place, other companies stand to help push the market higher. That includes companies with strong brands. Typically, these companies are worth owning for years. and will often stage strong rallies after a long period of underperformance. That ...
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Interest rates have started to decline, for the first time in four years, and after a hefty interest rate hike cycle. The bond market is starting to predict future rate moves, with the expectation that the half-point rate cut will slow down to quarter-point increments. No matter the speed, the direction of interest rates suggests that some sectors will benefit over the months ahead. And that being in the right sector to benefit from declining interest rates could see big returns. For ...
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The stock market is having a strong year, with the S&P 500 up over 20%, well above its long-term average. But other assets have fared even better. Gold is up nearly 25%, and bitcoin is up over 40%. Investors continue to move into these trades on skepticism about the market rally lasting. It’s possible that lower interest rates could fuel inflation again, which could send these assets even higher. With that potential scenario in mind, investors may want to continue to invest ...
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Oil prices have been perking up over the past few days, after briefly trading under $70 per barrel. Part of the move is because of the potential for escalating violence in the Middle East, particularly between Iran and Israel. However, there’s likely more upside ahead for oil. Overall production has been held lower by OPEC in recent years, and demand remains high. As with many other commodities, oil looks like a relative bargain in the markets today. That could bode well for ...
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While the overall stock market tends to trend higher over time, individual sectors within the market tend to take the lead. At the tail end of the 2022 bear market, tech companies kicked off the rally as AI became a bullish theme. Since then, the market has rushed higher. Other sectors have started to show some signs of life in recent months. That trend will likely continue now that interest rates are coming down. Lower interest rates make it easier for companies ...
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The goal of any company is to grow its products and services. However, sometimes a company is structurally prevented from growth. That could come from having a local or regional monopoly, like a railroad or utility. Sometimes, other government restrictions can hold back a stock. When those restrictions disappear, however, a company can suddenly get set to grow. And that could lead to a catch-up rally reflecting the opportunity for faster growth. For instance, regulators just cleared megabank Wells Fargo (WFC) from ...
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Activist investors sometimes get a bad rap. But often times, they buy a significant stake in a company, at last 5%, and push for management to make changes. For a struggling company whose share price has lagged, that can be a good thing. Even the news of an activist investor getting in can be a sign that improvements are on the way. The only question is whether the activist pushes for them, or if management steps up. Shares of struggling pharmacy store ...
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Over time, a company’s earnings can go a long way to determining the value of its share price. A company that can keep increasing earnings will likely see their share price trend higher. However, sometimes, the market will look at other factors besides earnings. One related issue is revenues, the raw cash that comes in the door before costs are factored in. A company with rising earnings but concerned over revenues may get punished by the markets, leading to a buying ...
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