Stocks and Markets
"In the investing blog, I seek to help you take sound investment decisions free from emotion by sharing my
objective insights on markets, sectors, and companies."
Risk-on trades flourished in the early part of the week. This rally, however, started to unravel by the end.
Should I invest in international stocks in 2020? This is a common question on investor’s minds after U. S. stocks fared better than international stocks in 2019. In this post, I compare the valuation of stocks and prospects for growth in the U. S. versus those in international markets. I also analyze the potential for changes in currency… Read More »
Although earnings stagnated in 2019, US stocks surged over 30% as valuation metrics increased. Will rising valuation metrics trip stocks? What is AlphaProfit’s US stock market forecast for 2020?
Earnings reports are an important factor affecting stock prices. The S&P 500 quarterly earnings parade starts in a few weeks. How is the 2nd quarter earnings outlook shaping up for different sectors and stocks? The S&P 500 companies are set to report their second-quarter earnings reports in a few weeks. During the first quarter, S&P 500 quarterly earnings… Read More »
The third quarter was a good one for investors. The S&P 500 gained 15% as stock price volatility declined, risk appetite rose, and confidence in financial markets seemingly improved – a milieu in which online stock trading companies should normally thrive. However, earnings reports from leading online trading brokers Charles Schwab (SCHW), TD Ameritrade (AMTD), and E*Trade Financial… Read More »
In a trend that represents a reversal from the excessive capital spending that characterized the late 1990s, many corporations have quietly been accumulating cash on their balance sheets over the past few years. In August CFO Magazine reported that cash and marketable securities made up about 15% of total capital employed at the end of 2003, up from… Read More »
Year 2009 has been tough for many investors. Investors who panicked in March and fled from equities to cash have watched their monies earn abysmally low returns while stock prices took off. The S&P 500 is now up 64% from its 2009 bottom, making it difficult for cash-laden investors to decide if it is right to return to… Read More »
Cash-Rich Sector Plays, I discussed how software companies, health-care providers, and apparel retailers stand out as high-cash play opportunities. What a firm is likely to do with excess cash depends on the company and its situation. Some may initiate or increase dividend payments and share buybacks, while others may use the cash for organic growth or acquisitions. The… Read More »
Earnings growth expectation is among the more important factors influencing the course of stock prices. With that in mind, here is how third quarter EPS growth expectations are currently lining up: Source: FactSet Research Analysts’ consensus third quarter EPS estimates imply 4.6% growth for S&P 500 companies in aggregate. Third quarter EPS in all sectors is predicted to… Read More »
Education Services and Online Colleges With the S&P 500 up 79% from the March 2009 bottom, one strategy to score home runs is to follow contrarian investors and look for best stocks in beaten down or out-of-favor sectors. In the first part of this two-part article, I outlined two ideas for contrarian investors: Medical devices with Medtronic (MDT)… Read More »