Tag: stock analysis

Investors Should Watch Out For This Breakout Stock

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


If you're an advocate of EMH (Efficient Market Hypothesis), then you likely assume that markets are rational and bargain pickups are hard to come by. Stocks that take off without notice shouldn't happen since investors, whether institutional or everyday, have access to the same information. However, there are some cases that simply defy the rules.

Stealthy stocks that are relatively unknown can surprise investors. These types of companies might have few or no analysts covering its stock letting it easily slip through investors sights. But once it starts hitting new highs, it makes waves.

Many have immortalized investors like Benjamin Graham and Warren Buffett. The value investor style of stock trading has been a winner for decades, but a look back at recent history tells a different story. It's growth stocks that have outperformed value stocks over the past decade. Advances in technology and a the globalization of the world's financial markets have led to an aggressive bull market that undervalued stocks just haven't been able to keep up with. Continue reading "Investors Should Watch Out For This Breakout Stock" →

This Company Is Making Moves That Investors Might Want To Pay Attention To

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Companies aren't static entities that hit maturity and simply stop growing. No successful business model calls for a reduction in innovation or a strategy that consists of “just keep doing what we're doing.” Great companies find ways to keep growing and keep building. They challenge themselves to develop new products or services and are never satisfied with the status quo.

Merger and acquisition activity is back on Wall Street – a good sign that the bull is coming back. Companies that are looking to expand look to M&A's as a long play for success. The initial cost can often have a short term temporary negative impact on earnings, but once its complete and overlaps are eliminated, the company can greatly increase its profits.

Some sectors are known for more of this kind of activity than others like technology and healthcare. These industries change so rapidly that a constant turnover is just part of the business model. But when sectors like industrials or retailers start to see that kind of activity, it's a sign that those companies see opportunities for growth on the horizon. Continue reading "This Company Is Making Moves That Investors Might Want To Pay Attention To" →

This Healthcare Company Is In The Middle Of A Huge Turnaround

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Nothing excites investors more than a turnaround story. A company or stock that was down on its luck and has finally turned the corner is a feel-good play that's hard to ignore.

One company in the healthcare sector fits this definition perfectly. After soaring to new heights in the early 2000's, the company was racked by scandals and lawsuits nearly driving the company into bankruptcy. However, after a reorganization and a new outlook, the company has rebuilt its image and business into a successful company that's thriving today.

The healthcare industry is a growing field and a defensive one to be in considering how delicate the global economy is. One factor helping the industry along is an aging demographic. As of 2015, 14% of the US population was aged 65 or older. By 2020, that number is expected to rise to 22% thanks largely to the baby boomer generation who are heading into their retirement years. Continue reading "This Healthcare Company Is In The Middle Of A Huge Turnaround" →

This Unlikely Stock Is Hitting On All Cylinders

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


It's no secret – it's a tough market out there. Oil prices are at record lows, the US dollar remains stubbornly strong, and now the Fed has all but admitted that the economy is weaker than expected and we might need to start preparing for negative rates.

In this kind of environment, smaller companies can often slip through the volatility. They can ride the waves of uncertainty and ignore macroeconomic hardships that plague their larger competitors making the smaller one an unlikely winner. If that stock is an industry which is trending higher, that's even better.

One stock in the communications sector is slipping through the noise and could be a huge opportunity for investors. The communications sector is widely viewed as an industry undergoing a rising tide, which as most investors know means it lifts all ships within that industry. Continue reading "This Unlikely Stock Is Hitting On All Cylinders" →

This 'Hated' Stock Might Be The Right Fit For Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's a popular myth on Wall Street about short sellers being the smartest guys in the room. After all, stocks, in general, do tend to appreciate over time, but picking stocks that fall requires a bit more homework and skill. But short activity in a stock isn't always a good thing.

When enough short sellers team up on a stock and it happens to post better than expected results, they either bail out at the first opportunity or run the risk of getting caught in a short squeeze. If the stock appreciates too much too fast, they'll get called out of their positions creating an event that turns into massive buying on an already hot stock that can cause a quick spike in value.

For one stock, a slew of bad news seemed like the ideal playground for initiating a short position. Continue reading "This 'Hated' Stock Might Be The Right Fit For Your Portfolio" →