Stocks To Buy

Big companies can often go in and out of favor with the market. But companies that underperform tend to catch up over time. And investors who have been disappointed with such a company will be happy when that outperformance occurs. Many stocks are still underperforming. In a market that’s driven by news about AI developments, that’s no surprise. But it also means that today’s buyers can get a relative value in non-AI parts of the market. Defense contractors are one such play ...
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Historically, all companies go through a period of rapid growth while they build market share. Once they hit saturation, they tend to see a decline. To avoid that, most companies have to innovate and come up with a new product or service to keep customers. For other assets, such as commodities, demand can fluctuate in cycles. Investors who buy near the low of the cycle and sell near the top can often make market-beating returns. Today, utility companies are behaving like commodity ...
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Semiconductor companies have been on a tear. Part of their rally is driven by anything related to AI. But another part is the announcement of new chips that can truly expand on the breakthroughs occurring in AI today. Part of that could mean that some lagging companies may end up grabbing more market share. And that slower-growing companies out of the market’s favor may become the new market leaders in the quarters ahead. For instance,Intel (INTC) has struggled in recent years. It’s ...
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“It’s only when the tide goes out that you learn who has been swimming naked.” That Warren Buffett quite is about the danger of investing in companies during bull markets. Some companies that are flying high today may have some problems that are being overlooked. That trend could easily reverse. So with markets still near all-time highs, investors may want to look for companies that have clean financial books and are in good shape. One such company isAutodesk (ADSK). Shares have rallied ...
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Most market sectors move in and out of favor with investors over time. One simple strategy for investors is to buy out-of-favor sectors, and then look to take profits when that sector turns around. Doing so can create market-beating returns consistently, and keep out of sectors that are overly loved and may be poised to see a massive drop. Today, a few sectors remain out of the market’s favor, including one in the tech space. That niche part of the tech market ...
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For all the clamor in the AI space, most investors have largely focused on large companies. On the surface level, that makes sense. Big-name tech firms have billions of dollars that they can easily throw into AI projects. If there’s even a small boost to the company’s bottom line, it can mean big bucks for shareholders. But smaller AI plays look attractive now too. That’s because these companies have a smaller market cap. As smaller companies grow, they can see a massive ...
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Different companies have different ways of offering products and services to their consumers. Wall Street prefers to see companies that have as much consistency to their revenues as possible. That’s why cyclical companies tend to vastly underperform the markets at some times, and outperform at others. Today, Wall Street loves seeing companies that can generate recurring revenues. It’s better to have monthly billing rather than make one-time sales, even if the overall revenue is the same. While this has been seen as ...
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Traders looking to profit over a multi-month period can often get a good return following activist shareholders. Typically, activists build a position then disclose it. Once they do, they also make note of changes they’d like to see at the targeted company. Some companies will work to make those changes, and get the activist shareholder to move on. Others may resist, and then have to deal with a boardroom battle. How this plays out can lead to wide returns in how ...
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