Investing
Small-cap stocks haven’t been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we’ll discuss five cheap small caps yielding between 8.3% and 17.1%. (That’s no typo by the way—we only talk serious dividends here at Contrarian Outlook!) The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let’s shop: S&P 500: 21.2 times earnings (pricey!) S&P MidCap 400: 15.4 times (better…) S&P SmallCap 600: 14.7 times (bingo!) The valuation spread between the S&P 500 and S&P 600 hasn’t…
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. 10 Oversold Stocks You Should Know About » In trading on Wednesday, shares of AbbVie entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as…
Gold has always captivated investors during uncertain times, and with its recent surge to an unprecedented $3,322 per ounce, many are wondering if now is the moment to add the precious metal to their portfolios. Let’s examine gold’s investment profile and the challenges of timing this uniquely volatile asset. Gold’s Enduring Appeal as a Safe Haven Gold has long been hailed as the ultimate safe haven, a glittering refuge in times of economic turbulence. But how does it stack up as a long-term investment? The answer depends on how and when you look. While gold prices soared nearly 360% between…
In the run-up to the reversal of many of President Trump’s tariffs, we saw some true panic selling that turned into what can only be called panic buying: Investors eager to get back in as they realized the selloff was a buying opportunity. And to no one’s surprise, tariff-related market drama has continued since then. Last Wednesday’s bounce happened so fast I couldn’t get my response to the selloff published in time. Earlier last week I wrote, “Fortunately, this situation will not last forever. Stocks will ultimately recover their losses from this last week.” Then stocks did recover before those…
Shares in WH Smith dropped on Wednesday despite the retailer reporting strong first-half trading within its Travel division. At 922.5p per share, the FTSE 250 business was last dealing 3% lower in midweek trade. Ongoing strength at Travel meant group revenues rose 3% in the six months to 28 February, to £951 million. Growth was 4% on a constant currencies basis. Sales at its core division – which has stores in airports, rail stations and other transport hubs in 32 countries – rose 6% to £712 million, or 8% at stable currencies. Meanwhile, High Street revenues dipped 7% to £239…
According to NextEarningsDate.com, the Intel next earnings date is projected to be 4/24 after the close, with earnings estimates of $0.10/share on $12.87 Billion of revenue. Looking back, the recent Intel earnings history looks like this: The company has the following long-term earnings per share chart: And with quarterly revenue that looks like this: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details. And that volatility can be a stock options trader’s dream come true — so such traders will be interested to know that Intel has options…
As volatility changes every asset class, I have set out to personally interact with the people managing actual wealth through it all—fund managers of many stripes, disciplines, and ideas. From growth purists to distressed hunters, from special situation gurus to deep value investing stalwarts, I interview top investors across the spectrum in this Forbes series to better understand not just what they’re purchasing but also their mindset. Last week I met with C.T. Fitzpatrick, founder and CIO of $6.5 billion Vulcan Value Partners, a company based on long-term, high-conviction investing. Vulcan remains steadfast in its commitment to inherent value, patiently…
For the past couple of years market participants have learned that whenever the market dropped, it would come roaring back. The lesson seemed clear: Any sign of weakness was temporary and presented a buying opportunity. While that rule didn’t work very well in 2022, it has generally held true since the 2008 Financial Crisis. Even the market crash caused by the full economic shutdown in 2020 turned out to be a great entry point. So, should the current turmoil, triggered by the new tariff policy, be approached the same way? Some observers think it should. Despite the tough rhetoric, the…
Forecasters say sales of sedans and SUVs this year in Europe will range from modest gains to simple stagnation. That sounds as about as far from excitement as you can get. But if forecasts are right, most investors will breathe a sigh of relief and pinch themselves to make sure they aren’t dreaming. Survival would be a bonus. The European automotive industry is in the throes of unprecedented turmoil and uncertainty. President Donald Trump’s tariffs suggest traditionally hugely profitable European sales in the U.S. from the likes of BMW and Mercedes could disappear overnight. News Tuesday that President Trump was…
If you have a large amount of excess cash to invest, you may wonder if it’s better to invest over time by dollar-cost averaging or put a lump sum into the market at once. Whether you have extra cash sitting on the sidelines or are second-guessing your investment strategy, it’s easy to let hindsight bias or a fear of losing money impact your decisions. Especially during periods of heightened uncertainty, dollar-cost averaging a large sum can be an effective way to reduce risk and avoid temptation to try and time the market or predict short term volatility. How Dollar-Cost Averaging…
The powers that be are playing a high-stakes game of “tariff roulette”—and I don’t know about you, but I don’t want to put my life savings on the table here! But we’re not among the crowd bailing on stocks, either. No way. We’re retirees (or aspiring retirees!) and we demand income. So instead, we’re going to look to “tariff-proof” (or “recession-proof,” if you think this trade war is sending us there) our portfolio. And we’re going to do it while cutting our tax bill, too. Our timing is right here, because the jump in 10-year Treasury rates we’ve seen since…
Editors Picks
Subscribe to Updates
Get the latest finance news and updates directly to your inbox.