Studies have long linked upside earnings surprises with handsome future stock returns. The problem with today's upside surprises, however, is that most aren't especially surprising.
Don't expect the stocks below to escape losses entirely if the broad market slides this summer. But history says they hold up relatively well in downturns, making them a good fit for jittery investors who want to stay in the market.
An investment company known for its frugal approach to stock selection has seen its own shares reach lofty levels on Wall Street. WisdomTree Investments shares have gained 38% this year -- nearly four times the broad U.S. stock market's ...
Earnings season kicks off next week amid high uncertainty on Wall Street--especially concerning the companies below. Analysts have spent more than seven months steadily lowering their first-quarter earnings forecasts for the broad market. ...
As share prices broadly rise, some investors are betting big against the three stocks listed below. Each has seen heavy "short-selling" in recent weeks. That's a trading tactic that involves selling shares without actually owning them in ...
Starbucks has been the subject of punch lines about chain store ubiquity at least since the summer of 1998, when The Onion, a satirical newspaper, ran a headline about the opening of a new Starbucks inside the restroom of an existing one. ...
Over the past three years, corporate profits underlying the S&P 500 index have rebounded from a negative number to a record sum. Soaring profits, in turn, have helped to justify a quick rise in stock prices. But profits for the current ...
Two companies report earnings that surpass Wall Street estimates by 10 percent. Shares of the first company jump, but those of the second are unchanged. Why?
A trio of retailers has lately spent massive sums on a single investment: their own stock. Stock repurchases are one of two ways companies return the cash they earn to investors. Dividends are the other. The long historical record for stocks ...
Investors are rational agents, economists like to say. In other words, for the most part, we're not nuts. If IBM trades at $190 a share, Uncle Hank isn't going to offer his lot at $150 -- and if he does, it's time to talk to ...
Many investors use the price-to-earnings ratio to tell whether stocks are cheap. It shows how many dollars a buyer must pay for each $1 in yearly earnings the company produces. There are other such measures that show how much investors must ...
Cisco stock has been a poor performer since the dot-com stock bubble of more than a decade ago. But it's up 14% since last March, when the maker of networking equipment announced it would start paying quarterly dividends.
On Wall Street, "sell" recommendations are exceedingly rare. Perhaps for that reason, they tend to be worth following. Among companies with the most sell recommendations is Eastman Kodak, which the Wall Street Journal reports this ...
Boring stocks are basking in popularity. The utilities and consumer staples sectors within the S&P 500 index are 12% and 22% more expensive, respectively, than the broader index based on 2011 earnings forecasts.
By 2030, around 20 percent of the U.S. population will be 65 and older, up from 13 percent today, reckons the Census Bureau. There's a gloomy theory on how that will affect stocks. As boomers earned and saved in the 1980s and 1990s, ...
U.S. stocks have rallied fiercely since Thanksgiving, but the S&P 500 index is still 8% below its 2011 high, reached in May. The stocks listed below have done better. On Monday, they all hit new highs for the year.
Large numbers are difficult to conceptualize. The Wall Street Journal reported Monday that Facebook is targeting a spring initial public offering that would value the company at $100 billion. Is that a lot or a little for a website with ...
Netflix and Hewlett-Packard are dissimilar companies that have met a common fate: a spectacular loss of popularity on Wall Street. The causes of these declines are more alike than different.
Investors already had two good reasons to lighten up on U.S. Treasury bonds. This week they got another. The first reason is a puny payoff. The 10-year Treasury note recently yielded less than 2%, or less than one-third of what it has paid, ...
If your stocks are plunging, your income is stagnant, and your spouse just lost his or her job, economists have "good" news. According to their definition of prosperity, the current period may not qualify as a recession. Hosanna!
Small-company stocks look expensive as a group, and their performance has underwhelmed this year. But that's no reason to ignore all of them, because many small-company stocks are bargains.
Upside earnings "surprises" aren't all that surprising nowadays. The percentage of U.S. companies that beat Wall Street projections come reporting time jumped from 49% in the late 1980s to 76% in 2000, and it has stayed high ...
Large U.S. companies are nearly halfway through earnings-reporting season, and predictably, the news is mostly good. Despite some high-profile forecast misses from Apple and Amazon, only 21% of companies have done worse than projected. ...
Lowe's announcement Monday that it will close 20 underperforming stores sent its shares 1.5% higher by midday, bucking a broad market selloff. For retailers, judicious store closings can reduce long-term expenses and improve profit ...
Income investors have scant choices as the moment. The 10-year Treasury bond pays just 2.1%, and safe corporate and municipal bonds are similarly stingy. U.S. stocks have dividend yields averaging just over 2%--but they've frightened ...
Cheap stocks are suddenly abundant. The S&P Composite 1500 index of large, midsize and small U.S. companies has lost 12% in three months. More than 300 of its members now have price-to-earnings ratios in single digits, suggesting a ...
There are fewer than 100 shopping days until Christmas, but with Europe flirting with a financial crisis and America at risk for a second recession, few investors are thinking about retail stocks.
For bargain hunters, U.S. stocks offer a mixed message. The S&P 500 index trades at 12 times forecast 2011 earnings, a slight discount to its historic price. Companies in sectors with sturdy demand sell for modest premiums--big food ...
As economic growth slows worldwide, stock investors are competing fiercely for shares of companies with the best earnings growth prospects. But that has made shares of such companies expensive. A better approach might be to target firms ...
Military suppliers have gotten clobbered. Among S&P 500 members, aerospace and defense firms have lost 22% of their value in six months, versus 16% for the broader index. These companies were cheap to begin with relative to their ...
Nominal stock prices shouldn't matter. If Groucho Tech and Harpo Corp are identical companies, it should make no difference to investors that Groucho has 10 million shares outstanding priced at $4.50 apiece, and Harpo has one million ...
Wall Street projects handsome increases to both profits and dividends for large U.S. companies in coming years. Investors should view the profit forecast with suspicion, but the dividend outlook seems believable. Below are listed some ...
I'm waiting for Smurfler and Who-jitsu to file for initial public offerings. Prices for recent IPOs with more recognizable names are high enough to signal a bubble like the one that popped in 2000. All that's missing are a string ...
For investors brave enough to buy while the market's falling, below are a handful of stock ideas. The Dow Jones Industrial Average dropped 7% during the five trading days through Thursday. These shares lost at least that much, and they ...
If there must be a financial bubble in something, maybe real estate isn't so bad. When the tulip bubble popped in 1637, traders were left with nothing but fragrant, mocking bulbs and lists of unenforceable contracts. When U.S. real ...
Anyone can call a stock cheap on a gut feeling. To screen for stocks that are cheap based on evidence, however, it's useful to compare their prices to some measure of underlying value that isn't altered by investor fervor. Common ...
History's most prosperous nation is nearing default on its debt, not because it can't afford to pay, but because a handful of top policy makers can't agree on how to cut spending and whether to raise revenues. Here's ...
U.S. companies have rarely been more prosperous. That's not cause for investors to celebrate, however. Two of history's most reliable indicators say earnings are so good that they're about to turn bad. Here are the details ...
If the Dow Jones Industrial Average's 151-point drop Monday seemed less than shocking, it's because fully one-quarter of trading days this year have produced triple-digit moves in the average. Below are listed the sort of ...
The value of U.S. mergers and acquisitions jumped 39% during the first five months of this year, according to PricewaterhouseCoopers. Companies are sitting on $1.1 trillion in cash, which suggests the second half of the year will see plenty ...
Big Tech is stuffed with cash and trading at a significant discount to the broad market. That's a sign of investor pessimism, and earnings for the group might indeed be due for a dip, but a handful of companies are too cheap to ignore. ...
Not all growing retail chains are healthy. To see what I mean, head to the nearest Circuit City, Linens n' Things or Chi-Chi's. If you have trouble finding them, it's because all three have closed most or all of their stores. ...
Food stocks make sense right now. U.S. unemployment is up, house prices are down, European debt looks shaky and growth has slowed a bit in China and Brazil. When the economy looks shaky, food-makers can be counted on to deliver stable ...
Greed is said to push stock prices higher, but if anything, the doubling of U.S. shares during the two years ended March suggests buyers aren't greedy enough. They're settling for the mere hope of fast gains while making only ...
The government Accountability Office runs two sets of numbers when forecasting the nation's long-term financial health: "baseline" and "alternative." Right now they might as well be called bad and worse. ...
Ten billion dollars is an almost unfathomable sum. Invested in humble Treasury bonds yielding 4% it will gush more than $1 million per day of income. Worldwide, 81 people have amassed such a fortune, one-third of them Americans, according ...
Here's a challenge: Think of a stock whose price has fallen since the stock market bottomed in March 2009. The S&P 500 has roughly doubled since then, so these are shares that have missed out on a stunning rally.
Wall Street analysts should work backwards. The price targets they assign to stocks -- "United Snorkle, currently $35 a share, should hit $42 in 18 months" -- are based on projections of how sales, margins, cash flow and more will ...
Earnings for U.S. companies are forecast to hit a record high this year. So it should be little trouble to find companies that generate a respectable amount of cash relative to their purchase price, and that pay a fair portion of that cash ...
Treasury inflation-protected securities offer meager interest: 0.9% on 10-year issues, versus 3.2% on standard bonds of the same duration. The tradeoff, of course, is that the principal is adjusted for the rate of inflation, keeping ...

Ask the right questions before you hand over your money
A balanced portfolio can have a bigger impact on long-term performance than individual stock picking
Investing for retirement is more complicated than opening an IRA or maxing out your 401(k)
When choosing a stock mutual fund, consider performance, manager track record and cost before investing.
Even in times of interest rate uncertainty, a certificate of deposit (CD) can still be part of your cash strategy.
The travel industry is under construction, hoping to spiff up in time for summer vacation. What to expect when the sawdust settles.
Turns out, the bigger a mutual fund gets, the worse it performs. Why some pros now think big isn't so beautiful.
Hough: They aren't the cheapest stocks, but they offer pep with less of a premium.
Arends: Is it true that stocks are cheap "when compared with bonds"? That's the line on Wall Street.