Buy This Winner and Avoid the Losers in the Fast-Food Space
Every sector has its winners and losers. Amidst a rapidly changing economic landscape, even the fast-food companies haven’t been immune. But some companies have fared well, even grabbing market share during this tumultuous time. Companies in the quick-service space that have seen an increase in traffic have done so with innovative marketing and by adding new menu items, rather than removing and scaling back right now. That’s the view of the fast-food analyst at Stifel, who sees the biggest beneficiary of this ...
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M&A Activity Hits the Oil Space… is a Recovery Likely?
Energy stocks have been poor performers this year. While oil prices have recovered from their short-term, fear-driven move into negative territory earlier in the year, the price of crude is still low. Even worse, energy stocks are down 50-60 percent or more year-to-date as low prices and demand, to say nothing of new technologies, continue to threaten the industry. That makes a new M&A announcement in the space welcome news… and a potential trading opportunity as well. The proposed merger is between ...
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Railroad Stocks Get an Upgrade: Here’s Two Worth Buying Now
Railroad stocks are looking undervalued as traffic is holding up well. In fact, the latest measures are showing that rail volumes are back to pre-pandemic levels. Railroads ship goods all over the country, including consumer goods from ports, as well as commodities from farm states, making them an interesting hybrid play on all levels of the economy. With rail volume holding up so well, it’s a sign that the economy continues to recover. That’s what led Benchmark’s logistics analyst to upgrade shares ...
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Interest Rates May Stay Low, But Investors are Warming to the Big Banks
Bank stocks can either be a great investment or a terrible one, depending on the timing. With the economy struggling to recover, banks aren’t the most obvious candidate for a rally. Yet many investors are gravitating towards them as investment opportunities now. Part of that may be the relative valuation of the banks, as they haven’t had the strong rallies of the tech sector. Another part is that, while interest rates may weigh on profitability, the banks will still profit. One such ...
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Two Media Plays to Consider Now
Activist investors can often point to undervalued companies that need to make a few major changes in order to unlock tremendous value. That’s why the recent purchase by activist investor Nelson Peltz is attracting attention. The latest undervalued find is a company in the media space that also has some legacy operations. Any transformation there that improves profitability could score a huge win for shareholders. The company? Comcast (CMCSA). Owner of a cable network, over the past decade the company has transformed ...
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Two Plays For a Renewed Interest in Cryptocurrency Mining
With the price of Bitcoin still hovering around $10,000, investors and traders alike are increasingly interested in the space. So are cryptocurrency miners, who are still able to eke out a modest profit every day right now. But new graphics processing chips are allowing that profitability to improve. And two competing firms looks like the best place for investors to take advantage of this ongoing trend. The two big players? Nvidia (NVDA) and Advanced Micro Devices (AMD). Currently, AMD’s top of the ...
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Goldman Sachs Gets Bullish on Two Industrial Giants— Maybe You Should Too
On Monday, Goldman Sachs analysts came out in favor of two large-cap, industrial names to buy now, citing the time was right to buy. Those names? Boeing (BA) and Raytheon (RTX). On their face, both look risky. Boeing’s orders have dried up thanks to a drop in air travel. And defense spending could be one of the few areas to be cut should Biden win the November election just weeks away. But on a relative valuation, there is a good argument for higher ...
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What to Do Now as the FANG Stocks Get a Downgrade
On Friday, Barclays Bank downgraded the FANG stocks and Microsoft (MSFT), to market weight. That’s a neutral rating overall, but given that the word “sell” is a dirty word on Wall Street, it’s a major shot across the bow of the major companies that have driven markets higher in the past year. The biggest insult? Barclays stated its main concern: That stock valuations are completely out of whack, and on par with a level last seen during the tech bubble. The FANG ...
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