Delta Air Lines (NYSE: DAL) is focused on cash flow generation, strengthening its balance sheet, and improving customer experiences. It has made progress in each one of these areas. However, one important industry trends is keeping the company’s potential on the runway.
Strategy and execution
Cash flow generation and balance sheet improvement were mentioned above. In 2012, Delta generated $2.5 billion in cash from operation activities, and it more »
Activision (NASDAQ: ATVI) doesn’t just throw titles out there. Rather, it focuses on quality and builds franchises. These franchises lead to recurring revenue. Activision management clearly knows what it’s doing. The big question now is if the company will be capable of growth in a changing industry.
Activision is best known for its online role-playing game, World of Warcraft. But it also owns other popular franchises more »
Daniel Loeb, hedge fund manager of Third Point (more than $14 billion in assets), recently exited his Yahoo! (NASDAQ: YHOO) position. This has led many investors to think that Yahoo! has seen its near-term peak in regards to stock appreciation. But this might be errant thinking.
CEO Marissa Mayer isn’t shy when it comes to inorganic growth. She understands that Yahoo! is looked at as a dinosaur more »
ADT (NYSE: ADT) is the largest security company in North America, with approximately 6.5 million customers. Being the largest company in any industry is a plus, as it often means a strong market-share position. However, it doesn’t guarantee that the company is heading in the right direction.
A happy separation
When the vast majority of stocks appreciate for several consecutive years, it can be difficult to determine which companies are for real and which companies are simply riding the wave. Chipotle Mexican Grill (NYSE: CMG) clearly fits into one of these categories.
A unique concept
If you had approached someone in the 1980s and told them there would be a healthy and popular Mexican fast-food restaurant chain in the future more »
With its massive growth and market-share-stealing prowess, Amazon.com (NASDAQ: AMZN) looks like an appealing investment. But over each company's time on the market, a similar stock has outperformed the internet retailer's share-price gains. It's also shown shown more consistency than Amazon on its annual top and bottom lines -- and this rival might even have more growth potential going forward.
A quick look at the scorecard
If more »
Best Buy’s (NYSE: BBY) stock has appreciated 167% year-to-date. You might be upset that you missed it, but this meteoric ascent likely had a lot more to do with the broader stock market’s rise than Best Buy’s real-world performance. Now we must look at what the future holds for this once-dominant consumer electronics retailer.
By selling products and services primarily related to electronics, Best Buy more »
Pay TV is found in more than 80% of U.S. households, but services like Netflix, Amazon Prime, and Hulu are knocking on the door loudly. Cable companies are keeping their houses in order by increasing prices on customers, but that's not likely to be an effective long-term strategy. Industry trends could eventually spell doom for some cable companies -- but at least one of them knows how to prepare more »
McDonald’s (NYSE: MCD) once ruled the fast-food world. Today, McDonald’s is referred to as a quick-service restaurant, and instead of sitting at the top of a mountain enjoying the views of all the lowly peasant-like companies attempting to compete, it has been forced to make room for others at the top of the mountain. McDonald’s is none too pleased about this chain of events, but it’s more »
Despite Fred’s (NASDAQ: FRED) having been around since 1947, there’s a pretty good chance you have never heard of it. That is because Fred’s is situated in small to medium-sized towns in the Southeastern United States. Furthermore, it caters to mostly low to middle-income consumers. Unless you are a low to middle-income consumer living in the Southeastern U.S., or unless you are a hardcore investor who more »
You might be wondering what Home Depot’s (NYSE: HD) results will be on August 20th, 2013. Nobody on the outside knows what will happen, but it’s still possible to assess the company’s current situation and potential based on recent trends.
A low supply of homes throughout most of the United States combined with low mortgage rates has led to a stronger housing market. The more »
United Parcel Service (NYSE: UPS) is widely known as a safe and shareholder-friendly investment, but it's possible that one of its peers might present a better opportunity.
Getting ahead of itself
If you compare UPS' all-time stock movement to FedEx (NYSE: FDX) and Expeditors International of Washington (NASDAQ: EXPD), you’re not going to be overly impressed. The chart below demonstrates:
However, we need to more »
Highly-leveraged companies face steep challenges if the economy falters, because debt usually becomes more expensive and impedes growth potential. Even if that’s not the case, perception plays a big role. When the broader market looks as though it might be approaching bear territory, investors want nothing to do with highly-leveraged companies. In these situations, there will be a flight to safety, such as large companies that have strong balance more »
The biggest challenge for solar power companies has always been to reduce costs and attain sustainable profitability. SunPower (NASDAQ:SPWR) has yet to achieve this goal, but it is making strategic moves to improve its future potential.
SunPower's strategic moves
In late June, President Obama announced his Fresh Climate Change strategy, with a focus on reducing emissions from coal plants. SunPower's stock appreciated approximately 20% over the next more »
TiVo (NASDAQ: TIVO) is both loved and hated on Wall Street. The DVR pioneer's unusually high proportion of shorts think shares have only risen because of the broader market's rally, while longs think the stock has more room to rise on its own merits. As you'll see below, one of these factions has much better odds of being proven right.
TiVo’s largest revenue stream more »
Arch Coal’s (NYSE: ACI) stock price has appreciated more than 12% over the past month, but some investors will strongly argue that this is nothing more than a dead cat bounce. With no international improvements in thermal coal markets in the second quarter, and all coal exports expected to be lower in 2013 than 2012, finding reasons to be bullish on Arch Coal can be challenging. However, challenging situations more »
Investing in wireless tower companies should seem like a logical investment. The popularity of smartphones and tablets has led to increased demand from wireless service providers. Not only that, but most wireless tower companies have entered long-term agreements with wireless service providers, price escalations included. Furthermore, wireless tower companies are acquiring smaller players at a rapid rate in order to capitalize on growth potential for the industry.
If more »
If you are looking for a quality long-term investment, you have come to the right place. Prior to getting to the details, however, it should be noted that based on this company’s broad exposure, any global economic downturns will have an impact on the stock price.
The good news is that any downswings in the stock price should act as an opportunity to add to your position. Furthermore, while more »
If you’re going to invest in hospitality, then you might want to consider the biggest provider of hotel rooms in the world.
It’s possible that you have never heard of InterContinental Hotels (NYSE: IHG). However, there's an excellent chance that you have heard of its brand hotels, such as Holiday Inn, Holiday Inn Express, and Crowne Plaza. You might also want to familiarize yourself with more »
These three companies have been performing exceptionally well over the past several years. Better yet, there have been no signs of a slowdown. However, that does not mean the coast is clear. Risks exist, and these risks should be considered in order to avoid taking a large hit to your portfolio.
A focus on quality
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