Stocks To Buy

The goal of any company is to grow its products and services. However, sometimes a company is structurally prevented from growth. That could come from having a local or regional monopoly, like a railroad or utility. Sometimes, other government restrictions can hold back a stock. When those restrictions disappear, however, a company can suddenly get set to grow. And that could lead to a catch-up rally reflecting the opportunity for faster growth. For instance, regulators just cleared megabank Wells Fargo (WFC) from ...
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Activist investors sometimes get a bad rap. But often times, they buy a significant stake in a company, at last 5%, and push for management to make changes. For a struggling company whose share price has lagged, that can be a good thing. Even the news of an activist investor getting in can be a sign that improvements are on the way. The only question is whether the activist pushes for them, or if management steps up. Shares of struggling pharmacy store ...
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Over time, a company’s earnings can go a long way to determining the value of its share price. A company that can keep increasing earnings will likely see their share price trend higher. However, sometimes, the market will look at other factors besides earnings. One related issue is revenues, the raw cash that comes in the door before costs are factored in. A company with rising earnings but concerned over revenues may get punished by the markets, leading to a buying ...
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While the stock market remains near all-time highs, many individual stocks haven’t taken off for the ride. Some companies have simply been out of favor, or haven’t been able to grow quickly over the past few years, making for a poor investment. Other companies have had to deal with significant headwinds, whether from consumer tastes, regulatory costs, or other challenges. The airline industry is no stranger to any of those issues over the past few years. The industry has been looking to ...
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Companies don’t operate in a vacuum. They have competitors, and often look to see what a competitor is doing to see if it’s an idea worth emulating (or not). Sometimes, a company gets into legal trouble. Legal cases can drag on for years. And they can cost millions of dollars. And customers may want to shop and invest elsewhere while a lawsuit plays out. That may create opportunities for a company to grow their market share while their competitor is defending ...
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Several key technologies have come to the forefront over the past few years. That includes electric vehicles, which reduce dependence on fossil fuels and lower carbon emissions. And artificial intelligence technology could be as transformative as the internet, if not more. Both of these technologies require electricity. Lots of it. And investors are starting to move into utility stocks as a play on the higher power demand likely in the years ahead. But one energy source looks best placed for this rising ...
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For nearly two years, AI has been the word that’s helped push many tech companies higher, particularly large-cap companies. That’s because those firms have been at the forefront of AI spending. For large enough companies, spending a few billion to build out AI is no big deal. While the market is shifting towards other parts of the AI story, many big-tech companies can still trend higher for a more fundamental reason. They generate massive amounts of cash. If that money isn’t being ...
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Lower interest rates mean it costs less for companies to borrow. And that it’s easier for them to expand operations. That’s why the market has taken off as it’s clear that companies will look to leverage up as the cost to borrow goes down. Combining that with sectors that are seeing increased spending could make for a winning investment strategy in the months ahead. With a construction, manufacturing, and infrastructure boom underway, a few possible winners look likely. One contender for a ...
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