An Unusual Play on Growing Government Spending

Investors have plenty of trends that they can follow to profits. One of the easiest – or at least biggest source—of profits to follow is the massive amount of government spending. That’s led to some people investing in highly regulated utilities, or even in aerospace and defense contractors for steady profits. However, times are changing. And the battlefields of the 21st century may not even have a physical location. There’s a tech-themed way to invest in this growing area of government ...
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Follow This Travel Trend for the Best Returns

Travel still remains below its pandemic levels, however, that could change this year. Companies in the travel and tourism space report robust demand, even with other parts of the economy showing a decline. One area with reasonable upside here is in hotel-related companies. That’s because booking trends have proven strong, even going into the new year and past the holiday season. Among the hotel stocks, Marriott (MAR) looks well-positioned here. The hotel chain just beat on earnings, and the stock is fairly ...
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Cash-Gushing Companies Rewarding Shareholders Should Be a Top Buy Now

It can be tough to decide what to buy in any market. Following last year’s bear market, which seems to be fading, one strategy might be to buy heavily shorted stocks. In the short-term, that may work. For longer-term investments, however, it may be prudent to invest in companies with solid growth and tremendous cash flow. That’s because cash flow can be used to grow the business, buy a competitor, or even reward shareholders with dividends or buybacks. Many large-cap energy companies ...
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Companies Improving Their Profitability Now Can Win Big in the Next Bull Market

This earnings season has been a mixed bag. Companies are reporting big layoffs and warning on an economic slowdown and the impact of inflation. Yet what sounds like bad news now could be bullish later on. That’s because companies laying off staff are finding that they can do as much – if not more – with a reduced headcount. Lower staffing costs could lead to a further cost savings that increases profitability – which could be a boon for shareholders. Of the ...
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For Better Investment Results, Follow Companies Being Pushed to Improve

Markets are cyclical, and often so are companies. A great product or service won’t last forever. Once the market has been saturated, new products or features are needed to keep revenues growing at a company. For tech companies, this constant iteration is fantastic. It’s inexpensive to develop new ideas and roll them out. And for many tech services, new features can be added while keeping customers on a monthly payment plan. So it’s no surprise that a number of activist investors are ...
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Bet on Strong Brands, Even Amid Short-Term Setbacks

Customers will pay more for a brand-name product that they know and love. That’s true with everything from home goods to restaurants, and even to choices of entertainment. A company that invests in building a strong brand can create excess returns for shareholders over time. But even great companies will see setbacks. That can create reasonable buying opportunities to get in on the long-term wealth-creation benefits of owning great companies. That may be the case with Activision Blizzard (ATVI). The company owns ...
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Continue Betting on This Strong Commodity Trend

The past few years has seen investors shift interest first towards alternative and green energy plays, and then away from them. That’s due to a view that the technology could be scaled up quickly. But that may not be the reality. That’s led to a strong performance in the energy sector, and one that’s likely to continue. It’s being aided by companies announcing that they’re scaling back their alternative energy investments. The latest company to scale back its alternative energy plans is ...
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Use Big Tech to Make Reasonable Bets on Speculative Ideas

Investors have gone crazy for artificial intelligence (AI) stocks since the start of the year. That’s thanks to the popularity of chatbot ChatGPT. While the money flowing into AI stocks specifically will likely peter out in the coming weeks, AI as an investment concept isn’t going away. Rather than speculate on a small startup company, it may make more sense to invest in a large, big tech company that’s working on the space. One company that will likely end up being a ...
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