Buy Companies That Sell Inelastic Goods

In finance, there’s a concept called elasticity. It shows that some goods won’t see a big drop in demand, even if there’s a big change in price. This can be seen with energy prices, as people have to heat their home and drive to and from work. It’s also plain to see in the food space, as people have to eat. Companies that cater to these demands tend to be steadily profitable, or even improve amid inflation. One such example is Kellogg ...
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Follow the Fundamentals, Not the Estimates

Earnings season can be a tricky time. A company can report great earnings. But if they warn on guidance, shares may sell off big time. Or, if a company has poor earnings, shares may move higher as things weren’t as bad as the market expected. In today’s market, most news is likely to lead to a discount in shares, whether good or bad. But that may be creating a solid long-term setup for investors. One company looking interesting now is Paramount Global ...
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It’s a Value Buyer’s Market

Price and value aren’t the same thing. A low-priced stock could be wildly overvalued relative to the business’ prospects. And a high-priced stock could still be pennies on the dollar for a great company ahead of a growth kick. In today’s market, the fast drop in price, combined with fear and uncertainty, are creating a number of values for long term investors today… even in once high-flying sectors like tech. One such example is Qualcomm (QCOM). The wireless communications chip manufacturer dominates ...
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Stick With Companies Growing Their Future Opportunities in Pessimistic Markets

Markets go up more often than they go down. But investors often forget when in the middle of a bear market. One way to break through the fear is to look at companies that are planning for a bright future now. At a time when many firms are scaling back, those looking forward are likely to best capitalize on the long-term return to rising markets and a booming economy. One example is with Oracle (ORCL). The database giant has embraced cloud services ...
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Buy Volatile Stocks When They Take a Dive

Some stocks deliver slow and steady returns over time that can compound out into a phenomenal profit. Others can be volatile – but that volatility allows investors to earn even more over time, provided they don’t get scared out of a trade. Right now, a number of companies have been taking big hits following earnings. And while it’s scary, separating the companies likely to best rebound from this slowing economy will lead to big returns. Case in point? Amazon (AMZN). The retailing ...
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Pick Up This Financial Leader Amid the Latest Market Fear

Sectors tend to start out with an explosion of activity, then consolidate into a few big names over time. That’s played out in everything from automakers to the media. As this happens, surviving companies tend to settle into making steady profits. And when there are just a handful of players, one will typically stand out as the industry leader. This company will fare slightly better than its peers for various reasons. One consolidated sector worth buying for the long term is the ...
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Buy Strong Brands Being Hit by the Stronger Dollar

One trend this earnings season has been a number of companies impacted by the strength of the US dollar in currency markets. As a result, multinational companies are reporting headwinds, as a strong dollar makes them relatively more expensive in local markets. That trend will end in time, and may even shift quickly once monetary policy stops tightening. As the trend reverses, companies that have been adversely impacted will suddenly benefit. Among multinational companies holding up strong right now is Mondelez International ...
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Grab the World’s Best Assets When They Go on Sale

In a bear market, smart investors buy. They know that great companies get sold off with overpriced ones during a market selloff. And buying great companies ensures better returns than chasing great companies higher during a bull market. Investors who follow this strategy can build a solid portfolio of blue-chip stocks in any sector. Right now, many great tech names have been hit the hardest. Of those tech stocks, there are some compelling valuations in companies that simply dominate their market. It’s ...
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