Articles for tag: Central Banks, Earnings, Economy, Investing, Markets, Stocks

January 10, 2024

Ron Finklestien

The Outlook for Small-Cap Upside: Valuations and Economy

After scrutinizing the performance of different asset classes in 2023, this week is dedicated to appraising the implications for valuations as the year kicks off, and the potential ramifications for stock performance. Large-Cap Sectors: A Balancing Act For large caps, most sectors hover around their average PE valuation over the past decade, signifying relatively fair valuation. There are notable exceptions – Information Technology is rich, reflecting investor optimism about AI, and Energy is cheap due to hurt inflicted by plummeting oil and gas prices. Small- & Mid-Cap State of Affairs When it comes to small-caps and mid-caps, valuations remain inexpensive

January 10, 2024

Ron Finklestien

Investing in the Lucrative Schools Industry 3 Stocks in the Thriving Schools Industry for Higher Returns

The academic landscape is transforming with the surge of e-books and online learning, presenting new opportunities for growth in the U.S. education industry. However, challenges such as higher advertising expenses and the emergence of generative artificial intelligence systems demand thoughtful strategies to ensure prosperity. Leading companies like Stride, Inc., Strategic Education, Inc. (SEI), and American Public Education, Inc. (APEI) are anticipated to thrive through prudent management and strategic initiatives in the burgeoning Schools industry. Industry Description The for-profit education sector caters to diverse academic needs, offering a wide array of undergraduate, graduate, and specialized programs in finance, accounting, healthcare, technology,

January 8, 2024

Ron Finklestien

Sherwin-Williams Company’s Stocks on an Upward Trajectory! Sherwin-Williams Company’s Stocks on an Upward Trajectory!

The Sherwin-Williams Company’s SHW shares have rallied 17.8% in the past three months, modestly outperforming its industry’s growth of 16% over the same period. The company has topped the S&P 500’s roughly 8.8% rise over the same period. Image Source: Zacks Investment Research Let’s take a look at the factors that are driving this Zacks Rank #2 (Buy) stock. Sherwin-Williams is gaining from the strength in its Paint Stores Group division, along with initiatives to reduce costs and increase pricing, as well as expanded operations. The company is growing its retail operations in response to robust domestic demand. Auto refinishing

January 5, 2024

Ron Finklestien

Two Gems in the Software & Services Industry for Savvy Investors

The Internet Software & Services Landscape and Investment Outlook The Internet-Software & Services industry shows signs of a mixed bag. Over the past year, some companies experienced a resurgence in business, while others faced a tough spot due to market corrections following the pandemic-induced digitization frenzy. Despite this, it’s challenging to see this industry underperforming over time, given its significance as the backbone of the digital economy. The industry has weathered long-term trends and remains resilient even as concerns about a slowing economy loom large. While geopolitical tensions and improving economic indicators affect most industry players, some are better equipped

January 5, 2024

Ron Finklestien

Riding the Market Rollercoaster in 2024 Riding the Market Rollercoaster in 2024

Happy 2024, everyone! We hope everyone had a great holiday season. We thought we’d start the year with a quick recap of how markets did over the last year (pretty good!), two years (not as good!), and this year (too soon for doom and gloom). 2023 turned out to be a great year for markets A broad range of assets saw positive returns last year, as shown in Deutsche Bank’s chart below (dark blue bars). Up to October 27 (light blue bars), returns were more middling, however, with about half of the assets shown still in the red. Since then,

January 5, 2024

Ron Finklestien

mining

The Rise of LFP Batteries Reshapes the Electric Vehicle Market

In early 2023, it appeared that cobalt and nickel-laden electric car battery markets were dealt a colossal blow, altering the balance of power in the industry. A few months later, the burgeoning success of LFP Model 3 stood as a testament to a significant shift in the global EV market, with LFP technology claiming an impressive 5% share and accounting for 21% of Tesla’s battery capacity in vehicles on the road, even before a critical patent expiry set for the following year. Shifting Dynamics in the Market It’s January 2024 and unfortunately for the staunch advocates of cobalt and nickel,