This Small AI Play Could Finally Be Ready to Trend Higher
For all the clamor in the AI space, most investors have largely focused on large companies. On the surface level, that makes sense. Big-name tech firms have billions of dollars that they can easily throw into AI projects. If there’s even a small boost to the company’s bottom line, it can mean big bucks for shareholders. But smaller AI plays look attractive now too. That’s because these companies have a smaller market cap. As smaller companies grow, they can see a massive ...
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Wall Street Loves Companies That Earn Money This Way
Different companies have different ways of offering products and services to their consumers. Wall Street prefers to see companies that have as much consistency to their revenues as possible. That’s why cyclical companies tend to vastly underperform the markets at some times, and outperform at others. Today, Wall Street loves seeing companies that can generate recurring revenues. It’s better to have monthly billing rather than make one-time sales, even if the overall revenue is the same. While this has been seen as ...
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Activist Investors Could Send this Stock Soaring Higher
Traders looking to profit over a multi-month period can often get a good return following activist shareholders. Typically, activists build a position then disclose it. Once they do, they also make note of changes they’d like to see at the targeted company. Some companies will work to make those changes, and get the activist shareholder to move on. Others may resist, and then have to deal with a boardroom battle. How this plays out can lead to wide returns in how ...
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For Patient Investors, Dividends May Offset A Slow-Moving Summer
The Wall Street saying “Sell in May and go away,” isn’t about getting out of the market. Rather, it’s a warning that the market’s returns in the middle few months of the year tend to slow. But even through the summer, it makes sense to stay invested. It’s only September and October that are historically challenging for investors. With a summer slowdown the seasonal norm, investors can find opportunities, particularly with dividend-paying stocks. While dividends haven’t gotten as much attention in the ...
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Smaller Players May Outperform Leaders as A “Catch-Up” Trade
In any industry, there’s one leader. Even if there are two big players that seemingly duke it out, one of them is still king of the hill. In the tech space, today’s leaders can become tomorrow’s laggards. That also means that when a leading stock is soaring, smaller players may be more attractive. Those smaller players could win from a “catch-up” trade when the leader’s momentum slows down. Right now, Advanced Micro Devices (AMD) could be the catch-up trade against industry giant ...
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This Industry Laggard May Get a Strong Shakeup
Defensive stocks tend to hold up well in just about any market. This recent market rally has been an exception. Tech stocks have handily beaten other sectors. And high interest rates have made dividend-paying defensive stocks look less attractive. But the businesses behind those stocks aren’t playing defense. By creating new products and expanding operations, they can continue to grow, and provide investors with great long-term returns. Buying these companies today could fare well when the tech trade slows down. One such ...
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Profit With the Shift to Cost-Conscious Consumers
Consumer spending has been declining. That bodes poorly for most retail stocks from here. However, not all retail stocks are created equal. Some retailers can thrive in a challenging environment. Specifically, companies that cater to cost-conscious consumers. Even with tight budgets, those looking for a deal and seeing price tags with steep discounts on them will likely continue to flock to companies that continue to have massive deals. One company that could hold up well amid slowing consumer spending is TJX (TJX) ...
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Inflation-Busting Companies May Get Rewarded With Bigger Market Shares
In any industry, market share is a key metric. How much of the total market one company gets can result in bigger profits, and also open up opportunities to take advantage of a larger size. Investors remain wary about inflation and rising costs. Those costs are usually seen when making a purchase, even if inflation has worked its way through the entire system. Retail companies are working on ways to lower prices and knock down inflation. One way is by finding products ...
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