Stocks To Buy

Traders take a short-term view. That means that investors can take a longer-term view that may be different depending on a situation. When a company takes a hit because it’s facing a problem, even an easily-solvable one, traders tank the stock. But in time, a successful company can overcome any short-term problem and trend higher. Investors who buy during periods of short-term fear can earn big profits as the fear subsides. Concerns over consumer spending are nothing new. But the retail outlook ...
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Companies have limits to their growth. A tree grows toward the sun, but not to the sun. To continue along a successful path, companies need to branch out and offer new products and services. Ideally, these will be natural extensions of their existing products. If there’s a good fit, a company can continue to grow and even accelerate its growth before it starts to see a big slowdown. For instance, brokerage Robinhood (HOOD) grew quickly thanks to offering zero fees and the ...
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After being frozen for nearly two years, the real estate market is starting to show signs of life. Listings are on the rise, indicating that homeowners may be ready to sell. While mortgage rates are still near multi-year highs, the Federal Reserve is now starting to lower interest rates. Rates will start trending lower in time, and now may be the time for investors to bet on a real estate rebound. That means that more home transactions are on the horizon, which ...
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Most industries tend to start with a large number of companies competing for market share. Over time, companies that can carve out a successful niche can grow their market share. Eventually, only a few players will remain. When a sector settles down to a few oligopoly players, profits tend to be steady. And investors in those companies tend to fare well over time. It doesn’t matter if it’s in software, credit cards, or consumer brands. One sector with an oligopoly is the ...
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One metric that investors often overlook is a profit margin. For a company in the manufacturing business, a single-dollar invested may only earn a total profit of a dime after all the costs involved. For a software company, a dollar invested may yield fifty cents. Over time, it’s clear that the higher-margin business ends up with more capital to expand, pay a dividend, buy back shares, or otherwise reward investors. Any of those activities tend to translate to a higher share ...
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While the market is having a great year, consumers were feeling lackluster going into the election. That trend is rapidly changing, as it’s likely that economic policies to focus on economic growth will take center stage. That bodes well for growth stocks, especially smaller stocks that could benefit from lower taxes and deregulation. And for investors in the right growth spot, returns can be huge. For instance, investors in Cava Group (CAVA), a fast-growing casual Mediterranean restaurant chain, have already seen revenues ...
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Since the election, markets have shifted back to rally mode. Optimism is back, as it’s likely that growing the economy will be the focus out of Washington for the next four years. If that’s the case, then stocks have more room to rally. And the big winners could be smaller players in their industry that benefit from higher growth and increased deregulation. Traders are already making their bets, but these plays have more room to rally. Given that consumers are getting more ...
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With stocks breaking out to new all-time highs, the play that kicked off the current market rally over two years ago, AI, remains strong. But investors are breaking out beyond chip plays to other aspects of the AI rollout. That includes everything from hardware such as server racks, to data centers, to the land, electricity, and copper needed to build the physical infrastructure of today’s most-advanced software. With so many avenues open, investors still have plenty of ways to profit. For instance, ...
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