Stocks To Buy

When investors talk about the stock market, they’re usually referencing an index such as the S&P 500. Every index is made up of a mix of different stocks, and carry different weightings. Over time, markets tend to rise because weaker companies in the index are replaced with stronger companies. Such rebalancings occur periodically, and investors who buy shares of companies going into a bigger index can often get in ahead of billions of dollars flowing into a stock. The Nasdaq 100 just ...
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While investors have started looking beyond the chipmakers to play the AI boom, it’s clear that chips are still central to that theme. The world’s greatest AI software can’t run if there isn’t the infrastructure for it, including energy and data centers to the hardware, including processing chips. It’s likely that many chipmakers will continue to benefit in 2025, and for now, the market will continue to reward the top industry players. For instance, chipmakerBroadcom (AVGO) soared nearly 25% last week and ...
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Every company will run into trouble at some point. For investors, it’s critical to know when the biggest dangers have passed. One sign is that even when facing bad news, the share price either doesn’t respond to it, or the stock goes up. That could be a sign that the turnaround is underway. And that things are starting to finally look up. Buyers who wait for this early signal can often see great returns from a new trend higher. For instance, airline ...
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Investors can sometimes see big returns from companies that restructure. That’s been the case withApple (AAPL), which nearly went bankrupt in the late 1990s before it was able to refocus on key products. Apple would go on to create the iPod and iPhone after its bailout. While not every restructuring will turn a company into the world’s largest, a successful turnaround should mean big profits as the market starts rewarding shareholders. That could be the case with video game retailerGameStop (GME). The ...
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Some companies are cyclical, having a few good years and then a few bad years. Companies such as automakers or durable goods like appliances tend to fare well when the economy is, for instance. Other companies can play to longer-term trends. That’s particularly the case for tech companies, and why they’re such valuable firms to begin with today. The rise of AI also means an increase in their growth potential in the years ahead. That means investors should continue to buy shares ...
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There are many ways to profit from the stock market. One such way is to target companies that trade at a reasonable value, have a strong brand, but could benefit from stronger leadership. These companies tend to be targets for activist investors. Today’s activist investors tend to be firms looking to realize bigger profits from reorganizing a company, selling off a corporate division, or scaling back costs. If they’re successful, they can make market-beating returns in a short period of time. A ...
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The energy sector has been a laggard for 2024. Oil prices have struggled to trend around $70 for most of the year. The outlook isn’t too strong going forward either, amid fears of a slowing economy, or at least one where energy demands are focused more on nuclear energy for AI projects. While oil may be down, it’s not out. It’s still a critical resource that’s needed, and the most energy dense for transportation needs. Given the slowdown in EV adoption, ...
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The AI story continues. While many big-cap names are at all-time highs, other and smaller players are starting to show better signs of strength. Investors can likely see better returns going into 2025 with smaller-cap AI stocks. That’s especially true with software stocks. That’s because software companies tend to offer high profit margins. Once a piece of software is developed, the marginal cost of developing an additional copy is essentially zero. Software companies seeing strong demand from AI software can continue to ...
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