Stocks To Buy

The holiday season is when retail stocks have their best performance of the year. That’s because holiday sales provide retailers with the chance to see their biggest profits. However, consumers remain cautious after years of inflation. For a retailer to have a good year, it will need to offer bargains this year. Making value a priority may not mean a big profit margin. But it will mean solid revenues. And it will likely mean that those who don’t offer enough values ...
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Investors have been concerned about AI spending in the most recent earnings season, even as many big-name companies reported big spending on AI projects. While that put tech stocks in a funk, last week’s statement from Nvidia’s (NVDA) CEO noted that the AI trend is alive and well. That said, the market is still willing to punish companies with short-term concerns over AI spending or results. That can create an opportunity for investors looking to buy ahead of a year-end rally. For ...
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Interest rates have already started to decline ahead of the first rate cut by the Federal Reserve later this month. That’s starting to cause a market shift, allowing interest-rate sensitive companies to move higher. As rates trend lower, companies will benefit. They’ll be able to borrow and lower costs. And for some companies, it can also mean that their dividend yields will look more attractive relative to bonds. That’s the case with real estate investment trusts, or REITs. They’re required to pay ...
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Momentum investors operate under the assumption that a stock heading higher (or lower) will keep going in that direction. Until there’s a sign of a trend change, that’s a reasonable trading strategy. One item that can help momentum plays trend higher is their inclusion in a stock market index. That’s because the addition to an index means that the index has to buy shares. And since index investing is popular, millions automatically add to an index position with retirement plans such ...
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The housing market has largely been frozen over the past two years. Rising interest rates made it unattractive for those who locked in a low mortgage rate to move. And the higher costs kept potential homebuyers on the sidelines. The thaw is starting. Interest rates are already coming down ahead of the Federal Reserve’s action. And as the housing market thaws, home improvement projects and spending may soar. That bodes well for several companies. For instance, paint giant The Sherwin-Williams Company (SHW) ...
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Despite some likely market weakness in September and October, stocks are likely to close the year at new all-time highs. Even better, the trend has been shifting away from a handful of mega-cap large stocks, and the rally has been broadening out. Investors who buy smaller companies can likely see the best return on their investment in the months ahead. And investors have plenty of options that include companies that still play to today’s tech trends. For instance, Arm Holdings (ARM) is ...
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Every investment sector has its subgroup. The retail sector comprises a number of companies, from high-end shops to big-box stores. Depending on the economic cycle and valuation, some of those niche areas will perform better than others. With the economy cooling off, consumers are likely to look for lower-cost shopping experiences. And it could mean a rise in spending on little luxuries, rather than large ones. That bodes well for convenience store chains. These stores have seen high growth, and cater across ...
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Companies have plenty of ways to make sales and obtain revenues from customers. They can charge a one-time fee. They can provide financing for a larger item, or for long-term services. Or, for services, they can charge a recurring fee. Wall Street loves companies that charge recurring revenues. Unlike building a business off of one-time sales, recurring revenues show the strength of ongoing relationships. That’s why subscription-based service companies can see big moves higher or lower as they report results. While the ...
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