Inflation-Resistant Pricing Power Makes this Company Likely to Keep Rallying

Investors are looking for how companies are navigating the worst environment for inflation in 25 years. Many companies are doing well, having found ways to cut costs, or raise prices without losing out on sales. Some of the best companies do a little bit of both. That’s the case with Chipotle Mexican Grill (CMG). The company reported solid earnings, as higher costs were offset by higher menu prices, allowing the company to report earnings of $7.02 per share, beating estimates of ...
Read More
|

Wall Street’s Latest Rumor Creates a Buying Opportunity (But Not Where You Think)

Merger and acquisition activity is alive and well. More importantly, even rumors of a possible deal are capable of moving shares of companies large and small alike. That’s the case with Pinterest (PINS). News broke that the social media site might be acquired around $70 per share, at a valuation of nearly $39 billion. The potential buyer? Payment services company PayPal (PYPL). On its face, the deal doesn’t seem to make a lot of sense. These are two very different companies in ...
Read More
|

Smaller-Than-Expected Losses Point to a Post-Pandemic Trading Strategy

Some companies are still seeing sales and revenues below their 2019 pre-Covid peak. For these firms, changes in how we live and travel continue to impact their returns. And when it comes to how their stocks perform, it comes down to now how much a company loses, but whether or not it’s more or less than expected. That’s the case with United Airlines (UAL). The major carrier reported a smaller-than-expected loss in its most recent quarter. The carrier also reported that its ...
Read More
|

The SEC’s Retail Report Leaves Out this One Key Detail that Creates an Opportunity

After a failure to deliver on time, the SEC finally released a report on January’s “meme stock” activity in the market, primarily centered around the explosive move higher in GameStop (GME). The report came out with a statement that the regulator will try and use the event as a way to ensure markets remain fair for the little guy. But what’s more important is what didn’t make the headline of the report. The report noted that the explosive move higher in share ...
Read More
|

Tis the Season for this Sector to Soar

A number of retailers have already started dropping Black Friday deals. Typically starting the day after Thanksgiving, the story on Wall Street is that it really marks the day that retail companies move to profitability, or in the black, for the year. With some pent-up consumer demand and rising wages this past year, sales could blowout 2020’s pandemic-reduced numbers. While retail has already performed well as a sector this year, traders will likely fare best if they consider a best-of-breed player ...
Read More
|

When a Rising Tide Lifts All Boats, Buy the Best Boat

Investors have to pay up for quality. That tends to be worth it in time, as buying the best company in a sector can provide excess returns. In the past few trading sessions, the biggest Wall Street banks have been reporting earnings. Most have beaten earnings, as well as provided a buoyant outlook and reduced loan loss reserves, a sign of long-term financial health. While investors may think all big banks are the same, that’s not always the cases. Some banks have ...
Read More
|

Stronger Travel Trends Point to Profitability For this Industry Leader

After being pent up at home for months on end, consumers are looking to get out and travel more. That’s a trend showing signs of growth, a welcome indicator as the economy contends with persistent inflation and supply chain issues for physical goods. With that trend moving higher, a number of companies are likely to benefit. Probably not airlines, given higher energy prices. But investors who look elsewhere can be rewarded. One big potential winner is Airbnb (ABNB). The rental platform doesn’t ...
Read More
|

Time to Buy the Dip On this Leading Global Brand

Investors are willing to pay a premium for a brand. The name brand of anything, from shoes to soda will carry a premium compared to a lesser-known or even a store brand. Companies with strong brands tend to have premiums attached to their share price too, which can make it hard to buy shares at a reasonable price. That’s why traders should use any market volatility to focus on buying strong branded companies, as they end up being the proverbial baby ...
Read More
|