16101

If You Can’t Beat ‘Em on Fees, Join ‘Em

Fees, surcharges, fines, taxes, and other add-ons are a perpetual annoyance. However, for investors, companies that are able to charge extra fees, or increase their fees substantially over time, may be on to something. That’s because companies that can charge more and still keep their customers are likely on track to perform well as a business. And that means investors should be able to see increasing profits and a higher share price over time. With earnings season underway, a big way banks ...
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16098

Inflation or Not, Earnings Season Gets a Strong Setup

Earnings season for the second quarter of 2024 are underway. Earnings season gives individual stocks the most volatility, and for good reason. If traders are wrong about how a company’s performance is playing out, big moves can be made in shares. Earnings season typically kicks off with data from the big Wall Street banks. They’ve seen extra scrutiny recently, thanks to the fact that inflation has remained high, as have interest rates. Both tend to weigh on a bank’s profitability. While a ...
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16092

Slowing Consumers Are Waiting for Deals – And Just Might Get Them

Consumer spending has been slowing down for months. One recurring theme is that consumers are reluctant to buy given the rapid price inflation of the past few years. With consumers holding back on spending, companies will have to find ways to lower prices or create new bargains to bring consumers back. Those that can get there first could stand to gain substantial market share, especially in the consumer-goods space. One possible winner is PepsiCo (PEP). While the company’s second-quarter earnings indicated that ...
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16088

Rising Sales from This Crucial Company Suggest a Bigger Trend Higher from Here

While fears of fatigue in the AI space have grown in recent weeks, the start of earnings season is pushing that idea off, at least for now. That’s because AI-related companies are reporting strong earnings. Even better, companies are reporting strong sales. Since earnings can be cleverly adjusted by accountants, sales indicate raw cash flow before any potential accounting shenanigans. And with sales still soaring in the chip space, the sector isn’t quite ready to trend back down yet. Semiconductor manufacturer Taiwan ...
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16080

AI Could Take this Company to Greater Heights

Somehow, the artificial intelligence trend is here to stay. Most tech trends often fizzle out somewhat quickly. But with many companies insisting that AI is the real deal, and investing accordingly, it’s clear we’re in the early stages of a long-term tech trend like the rollout of the internet, even if it will take some time. One sign that we could see a continuation is that some major laggards in the AI space are now poised to take the trend further ...
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16073

This Summer Trend Could Make a Comeback

While the world is always changing, there are many cyclical trends that play out while that happens. Commodities move on a long cycle, but tend to have years of a bullish uptrends before years of pulling back. It’s common for stocks to rise at the start of the year, then pull back a bit over the summer. This summer, one market sector that hasn’t gotten much interest is starting to go back to its historical trend. That trend is the movie theater ...
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16068

Strong Earnings and Defensive Power Point to Long-Term Gains for This Sector

Is the economy turning over? It’s possible. Friday’s jobs data suggests that the slowdown is underway. And it may slide into a recession if left unchecked. That suggests that investors may want to lighten up on winning tech stocks. It also suggests that better investment returns may come from more defensive stocks going forward. These are companies that can continue to grow their earnings steadily, even in a declining economy. The latest earnings report suggest that some defensive plays are better ...
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16064

Invest With Companies That Can Win a Challenging Growth Trend

Most tech trends go through the same phases. First, there’s initial skepticism about whether or not a trend will play out. Once it does start to show some promise, rapid gains are made. But when rapid growth can’t be sustained, prices come back down. From there, companies that can continue to show real growth over time can lead to bigger profits. It may not be quick, but it can be rewarding. Right now, EVs are on the outs with investors. The rapid ...
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