There Are Always Overlooked Opportunities in Out-of-Favor Sectors

With so much focus on tech stocks over the past year, other sectors of the market look like a relative bargain. Many companies have been improving their earnings and revenues. But being in an out-of-favor sector means shares may become a better value. One such sector is the defense sector. It tends to perform well over time. And with rising global tensions, it could see further solid returns this year. In the defense space, L3Harris (LHX) looks like a reasonable buy. Shares ...
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Watch this Key Metric to Determine a Company’s Future

Many companies still operate in the real world, where they have to manufacture and ship out physical goods. That can include anything from raw commodities to advanced computer chips. Each of these companies will look at its inventories to gauge their success. Rising inventories likely means slowing sales, and in turn, slowing revenues. Declining inventories can signal the opposite, that sales are on the rise, and maybe even that raising prices might be a good idea. Networking equipment manufacturer Cisco Systems (CSCO) ...
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Use the Silliness of Earnings Season to Your Benefit

Earnings season is often full of surprises. That means a company can report great results, but sell off as traders didn’t think they were good enough. Or a company could lose money, but not as much as expected. When that happens, shares often soar. This can happen across any sector. But a great company in a long-term uptrend will likely keep moving with that uptrend, even amid any earnings season silliness. The latest market overreaction has hit Marriott International (MAR). The hotel ...
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Continue to Stock Up on Market-Lagging Brands

Long-term investors still have a wide shopping list of great companies trading well off their highs. Many stocks outside of the big tech space make the grade. Especially companies that have strong brands. The past few years have shown that high inflation can weigh on a company’s profitability. But a great company can keep raising prices faster than they lose customers. In that situation, they’re set up well for long-term inflation, even if it slows back to lower levels. That also means ...
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Undervalued Staples Can Still Make Market-Beating Returns this Year

The market rally since late 2022 has been driven by tech stocks, particularly large cap tech stocks developing artificial intelligence (AI) opportunities. That’s caused other sectors of the market to lag. Over time, improving earnings from these sectors is creating a better value. Investors may want to take some profits in high-flying tech stocks now that markets are soaring to all-time highs. Other companies can likely help push stock indices higher this year as they play catch-up with the overall market. For ...
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Invest With Industry Leaders Meeting Customer Demand

Customers can have rapidly changing tastes. A company needs to provide products or services that meet those tastes, but can also be flexible over time. Sometimes, a company will be behind the curve in adoption to changes. Once they figure it out, however, shares may start to trend higher. As that happens, market expectations for a company can shift, resulting in a company going from being out of favor with the market to moving in favor. The latest company making the right ...
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Companies With Strong Growth Can Continue Trending Higher

While the market may take a pause in the coming weeks based on seasonal trends, it’s clear from earnings season that many companies are growing. And that they can continue to do so. That’s growth as measured by an increasing number of customers or an increasing number of sales. With investors still worried about the economy, companies delivering real growth can likely trend higher, and be a solid buying opportunity in the coming weeks. Uber Technologies (UBER) is one such growth play ...
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Markets Continue to Love Tech Stocks that Move to Profitability

Technology stocks offer investors the best bang for their buck. They’re the growth leaders and can see big price swings. Over time, a tech company that can go from an early-stage idea to turning an actual profit can continue to trend higher. The market still cares about these opportunities today, as interest rates stay high and early-stage investors remain skeptical. That’s good news for firms that can become consistently profitable. Big data company Palantir Technologies (PLTR) is sustainably profitable in the eyes ...
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