Looking for investment income? Focusing on yield alone means you’ll miss out on lots of quality companies that pay a smaller dividend, but are still growing and could increase the payout in the future. Looking for companies that check both boxes — dividend payment and growth — can create a powerful compound growth effect over the long term.
Three companies our Fool.com contributors think meet these criteria are Applied Materials (NASDAQ:AMAT), Dolby Laboratories (NYSE:DLB), and Broadcom (NASDAQ:AVGO).
Image source: Getty Images.
Don’t pick just one tech theme when you can have many
Nicholas Rossolillo (Applied Materials): As 2020 has unfolded, I keep coming back to Applied Materials, and I see no reason not to again. The company makes equipment for semiconductor and other tech hardware manufacturing, and its engineering research lies at the heart of many important advancements in technology. Whether it’s high-end computing chips for things
It’s been a topsy-turvy year for Wall Street, with the benchmark S&P 500 setting records for the fastest bear market decline in history, as well as the quickest rebound to fresh highs.
Growth and value have also diverged remarkably this year. Growth stocks in the tech sector have been virtually unstoppable, whereas value stocks in most sectors and industries have struggled. The thing is, value stocks have a history of outperforming during periods of economic expansion, and it looks as if a new bull market is just getting started.
With valuations depressed, the following five turnaround stocks are now screaming buys.
Image source: Getty Images.
Walgreens Boots Alliance
Despite what you might think, pharmacy chains are big-money business, and Walgreens Boots Alliance(NASDAQ:WBA) looks like one heck of a steal at a little north of 7 times Wall Street’s profit consensus for 2021.
It’s no secret we’re in a highly uncertain economy created by the efforts to control the spread of the coronavirus pandemic. The U.S. unemployment rate, while showing some improvement recently, is still hovering around 8% and is significantly higher than the 3.5% it was in February just prior to the pandemic.
In this uncertain economic environment, it can be reassuring for investors to own stock in businesses that are not only surviving but are thriving in the midst of COVID-19.
Peloton Interactive(NASDAQ:PTON), Netflix(NASDAQ:NFLX), and Spotify (NYSE:SPOT) are three tech companies that are thriving despite (or to some extent, because of) the coronavirus. Let’s find out a little more about them and why these three stocks are currently doing so well.
Image source: Peloton.
1. Peloton: The home fitness revolution
Peloton’s business is on fire due to its very popular exercise bikes coupled with a growing desire
Snowflake(NYSE:SNOW), a cloud data company, has received a lot of attention from investors lately, following its mid-September IPO. Investors have taken an interest in this tech stock because of its 133% revenue growth in the first half of this year, and the fact that the company believes it has a massive $81 billion total addressable market in the cloud data space.
But despite Snowflake’s potential, there are a handful of other tech stocks that could be better long-term investments. To help you find a few, we asked three Motley Fool contributors for alternative Snowflake investments. They came back with Alteryx(NYSE:AYX), Zoom Video Communications(NASDAQ:ZM), and Amazon.com(NASDAQ:AMZN). Here’s why.
Image source: Getty Images.
With access to more data than ever, businesses need a way to make sense of it
Brian Withers (Alteryx): Snowflake’s platform excels in capturing enterprise data and centralizing it in one
Scrutiny of Silicon Valley is mounting in Washington. A Democratic-led House panel released a report Tuesday that said America’s biggest technology companies leveraged their dominance to stamp out competition and stifle innovation. The report capped a 16-month inquiry into the market power of Facebook, Google,
Republicans issued a separate response that didn’t endorse many of the Democrats’ policy prescriptions and accused the companies of bias against conservative viewpoints. Facebook shares fell 2.3% Tuesday.
Regeneron Pharmaceuticals Inc.
A treatment meant to jump-start President Trump’s immune response to Covid-19 provided a healthy boost to Regeneron Pharmaceuticals shares on Monday. The President touted Regeneron’s drug cocktail after doctors administered it along with other treatments, including
Gilead Sciences Inc.’s
remdesivir, which has been authorized for emergency use to treat hospitalized Covid-19 patients. The Regeneron treatment hasn’t been approved for broad use, and the company said that Mr. Trump
An expected surge in election-related volatility in the U.S. stock market is paving the way for Asian shares to make a run at besting their American peers.
Since hitting an all-time low relative to the S&P 500 on Sept. 2, the MSCI Asia Pacific Index has outperformed the U.S. benchmark by almost five percentage points. That nascent trend is expected to persist at least through the November poll and potentially beyond, according to strategists.
“There is a better than average chance that Asian stocks will outperform U.S. stocks over the course of the next month,” said Eoin Murray, head of investment for international business at Federated Hermes. “The volatility rise will be more pronounced in U.S. risk assets, and will pervade more globally but with less strength.”
Fears about a contested election result and President Donald Trump’s decision not to push for further stimulus
As surprising as the rally in stocks has been during the pandemic, the strength of emerging markets may be more of a shocker.
Stocks in these markets are supposed to need a robust global economy to thrive, and their governments haven’t been able to borrow or print money to tide them over through the crisis as much as governments in mature economies.
But they have held their own. Between March 23, when American stocks hit bottom, and Sept. 30, Emerging Markets iShares MSCI, a large exchange-traded fund, rose 44.2 percent. The S&P 500 SPDR E.T.F., which tracks the main American index, rose 49.6 percent.
As stellar as the returns have been in emerging markets, a closer look reveals a universe of haves and have-nots.
The first group of markets, mostly in East Asia, has come through the pandemic far better medically and economically, and its stocks have soared. China especially
Rebound numbers from Q3 will look spectacular following the paralyzing effects of strict shelter-in-place orders in Q2. The economy is officially in a recession after posting two negative quarters of GDP growth at (5%) in Q1 and (32%) GDP in Q2. The latest estimate from Atlanta’s Fed GDPNow for Q3 2020 is showing a record rebound of 35.3%.
This represents an increase of 7.9% quarter-over-quarter and 3.1% below the pre-recession high. For comparison purposes, the Financial Crisis of 2008 bottomed at 4.0% below its pre-recession during the third and fourth quarters of its recession.
The chart above shows the projected Q3 rebound of 35.3% from the Atlanta Fed’s GDP Now released on October 6th, 2020.
Cloud and IT Budgets: Staying Objective
Some will argue the market is not the economy (which is true), however,
NEW YORK (AP) — Stocks are rising on Wall Street Thursday as hope remains that Washington can approve more aid for the economy and after a report suggested the pace of layoffs is slowing a bit, though it remains incredibly high.
The S&P 500 was 0.6% higher in early trading, tacking more gains onto Wednesday’s rise after President Donald Trump apparently backtracked on his decision to halt talks on more aid for the economy. He said in a televised interview Thursday morning that “very productive” talks have begun on stimulus.
Other U.S. and global stock indexes were also higher, but the last few weeks of trading have shown repeatedly that early gains for the market don’t always last. Stocks have been particularly rocky since early September, swerving on worries about everything from too-expensive prices to the still-raging pandemic, but the index has been generally
Big Tech stocks barely flinched one day after members of Congress recommended parts of their underlying companies be broken up, but investors should be ready to buy if the stocks dip in the future, CNBC’s Jim Cramer said Wednesday.
“The time these Big Tech stocks get hit by some bad headlines from the House Judiciary Committee is the time you have to buy them,” the “Mad Money” host said. “Regardless of who wins the White House next month, they’re not gonna roll back 40 years of antitrust.”
The comments come on the heels of a Democratic congressional staff report out Tuesday that called for updates to the nation’s antitrust laws and to shake up operations of the largest U.S. technology corporations. The report charges Apple, Amazon, Facebook and Alphabet subsidiary Google with having monopoly power.
Facebook was the only one of the three stocks to fall in Wednesday’s session, slipping