Beat the Market With Companies that Meet These Three Criteria
Investors have a variety of ways to beat the market. One way is to look for oversold companies moving higher. Such companies tend to perform better over shorter periods of time. For stocks that can beat the market over a number of months to over a year, three criteria come into play. Such a stock needs to be cheap, hated by the market, and also trending higher. When those three criteria are met, big returns can follow. Today, payment company PayPal (PYPL) ...
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Invest With Luxury as it Continues to Lead
Investors remain bullish, even as inflation remains stubbornly high. One sign that investors are content is with the spending on luxury goods. These areas don’t see as much of a drop during a recession, and during a boom they can fare quite well. Luxury trends show that we’re still in the boom. That’s good for most stocks trending higher today. It also means companies catering to high-income customers should continue to go on a tear. High-end retailer Williams-Sonoma (WSM) just soared following ...
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Follow Long-Term Trends During Earnings Season
Investors looking for market-beating returns over a multimonth period can find plenty of opportunities during earnings season. That’s because many companies will often have a solid earnings season, but shares sell off. That could happen because the stock already rallied hard going into earnings. Or the market didn’t like what it heard on guidance. But over time, higher earnings should drive shares of a stock higher. With earnings season winding down, a few such trades remain. One of those is with department ...
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Profit From the Management of this Unstoppable Trend
Many of today’s big tech trends have one thing in common. They require massive amounts of data to process. It doesn’t matter if it’s for autonomous vehicles, or state-of-the-art AI software, or simply storing data such as photos and videos. If anything, these big tech trends suggest that data needs will accelerate. Companies that can organize, sort, store, and quickly recall data will continue to benefit from this trend. And that means increasing profits for investors. One of the most important components ...
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Beware Companies Raising Cash the Wrong Way
Companies have a number of ways to fund their operating needs. A company can sell shares of stock, such as in an IPO. Selling shares dilutes existing shareholders, so companies that regularly issue shares are likely to underperform. Otherwise, companies may want to go to the debt market. By offering debt, companies aren’t diluting shareholders. But that debt adds a cost to the balance sheet that needs to come from cash flows. Overly indebted companies can be poor performers. Companies that use ...
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This Retailer Could Set Itself Up for a Big Jump in Revenues
Retail is typically a tough business. A retailer buys up goods that someone else has produced, and has to sell them at a profit. Competition keeps prices from moving too far higher from other sellers. And the costs to operate stores can be substantial. That kind of business model has made for great long-term returns in some of the biggest retailers. They’re able to get the lowest prices thanks to the volume of goods that they sell. But some retailers can do ...
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Invest With Companies Ditching Unprofitable Ideas
A business exists to serve the needs and wants of its customers. A successful business will often look for ways to expand into more goods and services that customers demand. But mistakes can be made. And ideas that sound great may not lead to additional profits. A great company will periodically evaluate its actions and get rid of unprofitable business lines to better focus on its profit centers. For instance, energy giant Chevron (CVX), recently closed two clean fuel plants. These plants ...
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This Winning Trend Still Has Room to Continue Higher
A specific stock or sector will often move in or out of favor with the market. When a stock or sector is unloved, valuations can become attractive, even with the fear hanging over. And a stock moving from being unloved to loved can create a great momentum play for investors. Today, many retail stocks are trending higher, overcoming fears of a slowing economy that have weighed on the space for the past few years. One big retail player trending higher is Target ...
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