This Upscale Oligopoly Player Has Long-Term Potential Here
The market’s selloff over the past few months may be nearing a peak. While there could be another leg lower first, the drop has hit great companies to own hard enough to be a buy here. That’s especially true for companies that don’t have many competitors. Most mature industries only have a few companies, and have to cater to customers on other criteria than price. When the economy recovers, as it always does, these companies can move to new highs. In the ...
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Uncertain Times or Not, Cash Flow Matters
Investors tend to focus on earnings and sales. But cash flow is also a critical component of analyzing a company. It shows how money comes in as revenue, is spent on goods and services a company needs to run, and how the remainder ends up on the balance sheet. A company with strong cash flows has enough money coming out at the end to pay a dividend to shareholders, or buy back shares, after investing in maintaining the company’s growth. This earnings ...
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In Uncertain Markets, Quality Stocks Hold Up Best
Markets are still setting up for a year-end rally. But the selloff of the past month has taken many great companies far lower. While tech stocks have been hit the hardest, consumer goods companies have also seen heavy selling as they compete with the rising yields on bonds. That means investors may have a great opportunity to buy shares of defensive companies now, ahead of both a year-end rally and a likely move lower for interest rates later in 2024. Consumer goods ...
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Invest Where Other Companies See Value
One way to find market-beating trades is to look at companies that have suitors. A company that receives an unsolicited buyout offer can get a sense of what their shares would be worth if they were taken over. If the company rejects the offer, it may be a sign that they see even more value to their shares. That could lead to a higher offer, or a bid from a third company that sees an opportunity. Such a move is underway in ...
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One Easy Way to Bet on this Market-Changing Event
The cryptocurrency market has been trending higher this year, following massive losses in 2022. Traders and investors alike are looking at improving conditions. The biggest potential improvement is better regulatory clarity. One way that regulators could improve things is by approving a bitcoin spot price ETF. That would make it easy for investors to allocate some capital to bitcoin with their existing investment accounts. Over a dozen proposed ETFs are before regulators. Rumors of approval tend to move crypto prices higher. That’s ...
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Use Weak Markets to Buy High-Quality Names
The market remains well off its summer highs, and may be in for a few more rough days of trading before moving into an end-year holiday rally. That means investors have a chance to buy companies well off their highs. With so many economic uncertainties, buying great companies that lead their industry look like the best bet here. They won’t pop as much in a rally as lesser-known names, but they’ll also tend to hold their value and compound safely over ...
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Look Beyond Headline Names and Profit with Key Suppliers
The stock market usually moves higher due to just a handful of companies. Today, that’s centered around big-cap tech stocks working on artificial intelligence (AI) programs. In time, that may change. But while big names get the attention, companies that provide key services and supplies can also be big winners. That’s especially true after the big names have gotten the market’s attention and have run higher. Investing in suppliers can also provide useful signals as to the health of the economy. For ...
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Weight Loss Drugs or Not, Sugary Foods Aren’t Going Away
The past few weeks have seen several snack food companies take a big hit. Part of the move may have been from rising bond yields, which compete with dividend yields. Another factor is the use of Ozempic, a weight loss drug. Either way, shares of these companies have dropped off considerably in recent weeks, and now look like long-term buys. Weight loss drugs are nothing new, and many will still want to enjoy snacks or satisfy their sweet tooth. While headlines have ...
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