Stocks To Buy

Analysts tend to run behind market events. Companies tend to see upgrades after a big move higher. And when a stock is falling, the downgrades will come in too late to protect investors from most of the drop. The same is true with companies reporting their outlook. When things look good, companies tend to overestimate their future returns. When markets sour, they tend to significantly underrate their future returns. Case in point? Micron Technology (MU). The memory maker is reporting a slowdown ...
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The stock market just had its worst start to a year since 1970. That trend looks likely to continue, as interest rates need to rise further to slow down inflation. Most companies are down, with some tech stocks notching losses of as much as 70 percent so far this year. But a few companies have managed to hold steady, or even deliver a slight gain. They may continue to be relative leaders in this market for a few more months yet. One ...
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Some industries are more concentrated than others. While hundreds of bank stocks flourish, for instance, there are only a handful of companies with the overwhelming share of the soft drink market. Markets with an oligopoly, or even a duopoly, tend to become commonplace after an industry consolidates. That also makes those stocks solid investment choices. While a mature and slow-growth industry may not seem like an exciting play, having just a few players keeps those companies profitable. One such area is in ...
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Investors loved growth stocks during the stock market rally. With stocks now in a downtrend, investors are now looking less towards growth and now towards safety. One way investors can find safety is by focusing on companies that pay dividends. However, no dividend is alike. Income investors need to look at a stock’s payout ratio, to ensure a company isn’t paying out more than it’s earning. Another factor to consider is dividend growth. Over time, it’s more rewarding to own companies that ...
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Some industries and companies are heavily dependent on economic cycles. Other trends are far more recession-resistant. Investors looking to profit now can stay on the defensive by investing in companies that can maintain their standing during an economic downturn. Most investors focus on areas like utilities, telecoms, and consumer goods to profit from the stock market. But there are other places as well where investors can likely see excellent long-term returns investing now. One recession-resistant area with growing spending is in pet ...
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Financial markets and stocks are in disarray. While companies like banks are down due to interest rate fears, a select number of companies related to financial exchanges are also being hard hit – even as trading volume has been exploding. These companies tend to be consistently and largely profitable. So any short-term decline due to market conditions will tend to unwind over time, leading to big returns for patient investors who buy during market fears. That’s true of both traditional assets and ...
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The sharp rise in mortgage rates in the past year has caused the cost of financing a home to nearly double. Most investors are expecting a slowdown in home sales, as well as a price drop, as long as mortgage rates stay so high. However, while sales may slow down, homeowners will still need to maintain their homes and continue to repair their properties. That bodes well for beaten-down home improvement retailers. These companies are near 52-week lows, yet continues to show ...
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With the stock market in the throes of a bear pullback, many are looking to history as a guide for when the bear will end. While the answer varies, chances are stocks will remain weak for a few more weeks and even months as economic data continues to come in. That said, investors who start accumulating shares of great companies, particularly industry-leading companies, will end up with a strong portfolio performance on the market’s next rally higher. Among the big tech players, ...
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