Interconnected relationships define the market. Rising inflation is usually associated with rising commodity prices and an inverse correlation with stock and bond prices. The latest inflation data shows the inflation rate at 5.3%. The 10-year Treasury yield is struggling to keep pace at just 1.36%. But for savvy investors who know where to look, that…
Category: stock pick
AXL Is Trading Below Its Intrinsic Value
Investing in the stock market can be thought of as nothing more than a popularity contest. The more demand and attention a stock gets, the higher its price tends to go and vice versa. But an unpopular stock can often be a good place for savvy contrarian-minded value investors to find mispriced companies overlooked by…
General Dynamics Corp (GD) – Pullback Play with Growth
The markets appear poised for a correction. Many analysts are bracing for a pullback of 10% or more. The bull market has been charging ahead for some time now and has driven market valuations to levels far above average. The historical average P/E for the S&P 500 Index is about 15 times earnings – but…
Tasty Stock Growth Nearly Irrespective of Economic Conditions
Companies are generally subject to the same economic ups and downs that affect the broader stock indexes. This cyclical process is one of the first things investors learn to adapt to and profit from. But some companies seem to defy logic by demonstrating high growth nearly irrespective of economic conditions. These companies are usually big…
This Stock Does Well When Most Others Don’t
Most investors are familiar with market sectors or industries that are considered cyclical and defensive. Cyclical stock sectors tend to rise and fall along with the overall economy. On the other hand, defensive ones are more balanced with steady performance over time. Some businesses operate under the larger cyclical umbrella with defensive products and services…
Anchor Your Portfolio With This Blue-Chip Stock
The bull market is still going strong, but some growing concerns about inflation could temporarily drag markets lower. However, companies with a steady consumer base generally absorb higher inflation without any significant lulls. An expanding subscriber base and rising earnings mean that inflation isn’t a threat for one blue-chip Dow component. As a bonus, investors…
A Growth Play That Could Generate Returns of 20% or More
Global businesses are still adapting to the changing paradigm of increased digital services and a work-from-home employee trend. Staying up to date with the latest technological advances and keeping in touch with their customer base is essential to the long-term success of any business. And that means companies that provide other businesses with tools to…
A Contrarian Play for Value Minded Investors
While inflation concerns and a renewed fear of a COVID resurgence have rattled markets and increased volatility, it also provides an opportunity for those who know how to take advantage of it. When cyclical market sectors become ignored amidst an uncertain climate, it means getting discounted prices in good companies. Traders should keep their eyes…
High-Flying Growth Stock Still Has Room to Run
The resurgent global economy following the coronavirus pandemic hit a wall on Monday. New fears regarding a possible COVID virus rebound tanked markets with the DJIA falling 2.09% and the S&P 500 dropping 1.59%. But as they say on Wall Street – “buy the rumor, sell the news.” In other words, fear of a COVID…
New Signals for MMM, XEL, and JOAN
It’s a busy week on Wall Street as investors anxiously await second-quarter corporate earnings and additional reports on inflation. Some stocks are staggering in a tight range, while others begin to gain momentum and swing towards the upside. This week, MarketClub flagged major trend shifts for several high-volume stocks, including three well-known names on the…
