Latest news with #investmentStrategy
Yahoo
04-07-2025
- Business
- Yahoo
Why Fast-paced Mover Vestas Wind Systems (VWDRY) Is a Great Choice for Value Investors
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times. A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. There are several stocks that currently pass through the screen and Vestas Wind Systems AS (VWDRY) is one of them. Here are the key reasons why this stock is a great candidate. A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 2.4%, the stock of this company is certainly well-positioned in this regard. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. VWDRY meets this criterion too, as the stock gained 30.4% over the past 12 weeks. Moreover, the momentum for VWDRY is fast paced, as the stock currently has a beta of 1.29. This indicates that the stock moves 29% higher than the market in either direction. Given this price performance, it is no surprise that VWDRY has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped VWDRY earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, VWDRY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. VWDRY is currently trading at 0.86 times its sales. In other words, investors need to pay only 86 cents for each dollar of sales. So, VWDRY appears to have plenty of room to run, and that too at a fast pace. In addition to VWDRY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vestas Wind Systems AS (VWDRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-06-2025
- Business
- Yahoo
New To Investing? Vincent Chan Says Low-Cost Index Funds Are the Easiest Way to Get Started
Investing is one of the common paths to long-term wealth, but it can feel complex if you are just getting started. Luckily, financial guru Vincent Chan recently revealed the simplest way to get started. Not only is it easy to start investing based on Chan's advice, but his strategy has a proven track record of multiplying your money in the long run. The Easiest Things To Invest In Are Low-Cost Index Funds' Chan explained in the video. It sounds basic, but that doesn't make it a bad suggestion. Here's why index funds remain one of the most popular ways for people to invest. Don't Miss: GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved — become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Index funds offer investors exposure to a basket of companies. Some index funds contain a few dozen companies, while other index funds contain hundreds of publicly traded corporations. A couple of index funds even have well over 1,000 stocks, offering broad exposure to the market. You don't have to get the most diversified index fund to get good results. Some funds with 100 stocks perform better than funds with 500 stocks. The main strength of index funds is that they enable automatic portfolio diversification and streamline investing. You don't have to research a bunch of stocks, know what to look for in a good stock or follow the news every day. A portfolio manager can do all of those things for you as your money grows in an index fund. You can accumulate index funds in any investment account that lets you trade stocks. However, Chan suggests giving preference to tax-advantaged accounts like your 401(k), HSA, and Roth IRA when you make investments. These accounts let you reduce your tax bill as you grow your investments. Traditional retirement accounts let you reduce your taxes right now, while you won't have to pay any taxes on withdrawals from your Roth IRA. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. Chan suggests investing any remaining money into a brokerage account once you have maxed out your tax-advantaged accounts. Investors should also monitor any changes the IRS makes to the maximum amount they can contribute to retirement accounts. You also get to make catch-up contributions to your retirement accounts the moment you turn 50. Chan recommends looking for index funds that have low expense ratios. This ratio reflects the cost of holding the fund and having an investment firm manage it on your behalf. Passively managed ETFs that mirror benchmarks like the S&P 500 typically have low expense ratios. It's realistic to find passively managed ETFs that have expense ratios below 0.10%. Investors can further explore index funds by analyzing their total returns. You can look at how much a fund has returned over the past five and ten years to gauge if it's consistent or volatile. It's also good to look at a fund's asset allocation to see if most of the stocks are in the tech sector or another industry. Some investors also look at a fund's yield to see how much cash flow they will receive just by holding on to shares. While most investors shouldn't prioritize a fund based on its yield, receiving passive income from investments becomes more valuable as you get closer to retirement. See Next: $100k in assets? Maximize your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article New To Investing? Vincent Chan Says Low-Cost Index Funds Are the Easiest Way to Get Started originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Irish Times
24-06-2025
- Business
- Irish Times
Cliff Asness: advisers should retire `very dumb' timing argument
With markets gyrating wildly in 2025, a familiar warning has made a comeback: don't try to time the markets, because data shows that if you miss the 10 best days, your portfolio is doomed. Billionaire money manager Cliff Asness isn't buying it, bluntly saying such thinking is 'very dumb'. Yes, missing the best days hurts, says Asness. But missing the worst days helps just as much. The effect is symmetrical. Yet, for some reason, only one side gets a chart. In a 1999 paper, Asness also ran the numbers on missing the best and worst months: from 1970 to 1996, miss the 12 best months and your annual return drops from 12.3 per cent to 7.2 per cent. Omit the 12 worst months instead? Your return jumps to 18.1 per cent. The pattern holds in later decades, on monthly and daily data. READ MORE Does this mean you should time the market? No. Asness is still firmly in the 'don't try this at home' camp, saying most people – including himself – 'suck' at it. Timing is hard, expensive and usually ends badly. His point is just that the standard scare-story – miss a few good days, lose everything – is unserious. If you're going to dissuade people from market timing, he suggests, try honesty. The truth is bad enough, rather than resorting to this 'terrible, silly, embarrassing argument'.
Yahoo
19-06-2025
- Business
- Yahoo
Duluth Holdings (DLTH) Shows Fast-paced Momentum But Is Still a Bargain Stock
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times. It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Duluth Holdings (DLTH) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones: Investors' growing interest in a stock is reflected in its recent price increase. A price change of 8.2% over the past four weeks positions the stock of this clothing and tools supplier well in this regard. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DLTH meets this criterion too, as the stock gained 7% over the past 12 weeks. Moreover, the momentum for DLTH is fast paced, as the stock currently has a beta of 1.3. This indicates that the stock moves 30% higher than the market in either direction. Given this price performance, it is no surprise that DLTH has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DLTH earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DLTH is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DLTH is currently trading at 0.12 times its sales. In other words, investors need to pay only 12 cents for each dollar of sales. So, DLTH appears to have plenty of room to run, and that too at a fast pace. In addition to DLTH, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
Why Gold ETFs Offer the Best Safe Haven Right Now
Gold has surged to record highs fueled by rising geopolitical tensions, such as Iran-Israel tensions, and a sharp loss of confidence in traditional U.S. safe havens. Historically, investors turned to U.S. Treasuries and the dollar during times of crisis. But this time, these assets are also under pressure. A rare trifecta of weakness — declines in U.S. stocks, bonds and the dollar — signaled a broader shift in sentiment in April amid Trump tariff tensions. Policy uncertainty, inflation risks, and concerns about U.S. leadership have pushed investors to rethink their strategies. The gold bullion ETF SPDR Gold Trust GLD has gained 27% so far this year (as of June 16, 2025). The U.S. dollar ETF Invesco DB US Dollar Index Bullish Fund UUP has retreated 8.3% in the year-to-date frame (as of June 16, 2025). iShares 20+ Year Treasury Bond ETF TLT has lost about 2.4% so far this year. A sharp rise in U.S. policy uncertainty has unsettled investors. Meanwhile, the U.S. dollar, long considered overvalued, is starting to unwind. Forecasts point to a potential 10-20% decline against major currencies like the euro and yen over the medium term. The narrowing yield gap between the United States and other major economies is further weakening the dollar's appeal. Note that Moody's downgraded the U.S. sovereign credit rating by one notch in May 2025, citing concerns over the country's ballooning $36 trillion debt burden. This move, following similar actions by Fitch in 2023 and S&P in 2011, raised alarm among investors about the nation's long-term fiscal sustainability. The downgrade has veered the market's focus toward Washington's fiscal policy debates. This is especially true since a major tax cut bill backed by President Donald Trump may raise the fiscal deficit (read: ETFs to Play Amid Long-Term Yields' Best Week Since 1982). However, many analysts believe that the debt downgrade could eventually lead to higher borrowing costs for both public and private entities. The value of U.S. treasuries is likely to decline as the bond prices and yields are inversely related. With both Treasuries and the dollar underperforming, investors are turning to gold as a more reliable store of value. Unlike financial instruments tied to government or central bank actions, gold holds intrinsic value and is immune to inflation or political instability. 'Gold's key advantage is that it is no one else's liability,' said Nikos Kavalis, managing director at Metals Focus. 'When an investor owns Treasurys, other sovereign bonds and even currencies, they are ultimately buying into the respective economy,' he said, as quoted on CNBC. Moreover, the U.S. inflation reports are still cooler than expected, despite the tariff threat. The data points may lead the Fed to remain more dovish than expected. If the interest rates remain lower, non-yielding assets like gold should outperform. Japan has lagged behind other central banks in raising interest rates, which has discouraged investors from moving into the yen due to the unfavorable interest rate differential. Note that the Bank of Japan (BOJ) maintained its policy rate at 0.5% for the second consecutive meeting in May. Therefore, the yen, traditionally viewed as a safe haven, has been losing its appeal. The Swiss National Bank (SNB) may be attempting to curb safe-haven inflows, which could reduce the franc's appeal. In March, the SNB set its policy rate at 0.25%. Swiss consumer prices declined in May—the first drop in over four years—leading some analysts to speculate that lower interest rates could be on the horizon. Hence, the Swiss franc—another safe haven—may not offer much in terms of returns. The latest pivot toward gold reflects a deeper shift. For decades, U.S. assets were favored globally due to superior growth, strong yields and the dominance of the dollar. But as these pillars are weakening, investors are diversifying more intentionally, adding exposure to international markets and alternatives like gold. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
