Stocks To Buy

Some companies are able to pass on price increases to consumers easily. Others are not, and often have to absorb the costs. A consumer goods company can likely raise prices just over the rate of inflation most of the time, and not lose too much business. Companies like a utility or telecom, which may have to wait for approval to raise prices, on the other hand, may not be so lucky. As investors continue to remain defensive right now, it’s clear that ...
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It may sound like a cliché at this point, but when there’s a gold rush, the folks selling picks and shovels tend to be the ones to make a consistent profit. No matter what the industry, the key suppliers are the ones that tend to perform the best as other companies in the space duke it out for market share. That’s why such companies could provide great returns here. With many companies still reporting supply chain issues, suppliers that can deliver ...
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Many sectors of the market trend towards an oligopoly, where a small number of players will dominate the market. One such example is the media industry, where six large corporations control about 90 percent of the news today. Other sectors also have this factor at work. Smaller companies end up being bought out by larger companies, and the largest companies tend to jockey for position based on their ability to grow. For example, in the banking space right now, only 5 major ...
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As the market goes, so do most individual stocks. That’s especially true for early-stage companies or new combinations with a limited market history. A bull market can mean a new company will tend to be valued highly, likely even higher than it’s worth. But a bear market can mean a new stock will likely be undervalued until it can prove its mettle (or until the market changes to bullish again). One new name on the market now is Warner Brothers Discovery (WBD) ...
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After a massive surge higher in a number of commodities as Russia invaded Ukraine, prices for many such goods have come back down a bit. But company executives remain bullish on the space, and with ongoing tensions in many parts of the world, not to mention high inflation, the commodity bull market appears here to stay. Investors who buy top commodity stocks now, even with shares near 52-week or even multi-year highs, can continue to play this trend higher. One space that ...
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When an industry is new, many companies will flourish. Over time, the market will determine the best winners in the space. It could come from a better product, a better brand, a better business model, or simply lower costs. Over time, that leads to consolidation as weaker players go out of business and smaller players are bought out. Investors who buy ahead of an offer can make money on the company being acquired. But owning the industry leader over time can ...
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Investors remain concerned as inflation is running at its hottest since 1981, and as commodity prices have spiked higher, weighing on the overall economy. But no matter how good or bad the economy has been, individual companies that have been able to grow their earnings can thrive in any market. That’s especially true when a company is in a space where poor performance in a weak economy is expected. One such example is American Airlines (AAL). The company reported that its first-quarter ...
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Wall Street analysts tend to be quick to upgrade stocks that are rallying, and quick to downgrade a stock after it’s fallen. Traders who take the opposite tack tend to cash out during a rally, and tend to end up buying in when shares are at a bargain price. With many companies already down heavily, it’s no surprise that downgrades continue to trickle in, even though the worst may have passed for the stock market for some time. Case in point? Nvidia ...
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