Buying MGM Resorts and Vector Group looks like an affordable way to turbocharge your investment portfolio
Stocks in the S&P 500 are trading at an average price-to-earnings (P/E) multiple of 42 compared to its historical average of 16. That means it's getting harder to find good deals in the market right now.
1. MGM Resorts
It would be inaccurate to say that MGM Resorts stock could skyrocket in price because it is already soaring. Share prices are up 33% year-to-date thanks to optimism surrounding its sports betting platform, BetMGM.
2. Vector Group
Vector Group is a top pick for investors who prioritize diversification and income. The company's tobacco business is a reliable cash cow. And its real estate arm performed surprisingly well during the coronavirus crisis because of its exposure to a wide range of geographic markets in the U.S.
Diamonds in the rough?
MGM Resorts and Vector Group are both reasonably priced stocks in a high-priced market, but they serve different investment styles. Vector Group is excellent for defensive investors who prefer cash flow and big dividends. While MGM is a riskier bet, but it has more potential for explosive long-term growth because of the sports betting opportunity.
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The leading mortgage lender was up double digits
Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy
What happened
The stock market was largely flat on Thursday as investors waited to see if a new stimulus agreement could be reached. Most major indices were in positive territory as of 2:50 p.m. EDT, but not by much.
So what
There are a couple of potential reasons investors may be optimistic today. Since the stock's price spiked higher at about 10 a.m. EDT, the most likely catalyst is the announcement that mortgage rates have fallen, yet again. The latest mortgage data from Freddie Mac, which was released at 10 a.m.
Now what
The key questions surrounding Rocket Mortgage are how long low rates are going to last and how long refinancing volume can stay elevated. Think of it this way: Even if rates stay at 3% or slightly less for years, at some point, substantially everyone who wants to refinance will have done so.
Intel (INTC)
Click to Enlarge Intel (NASDAQ: INTC) shares are extending their year-to-date uptrend and pushing to new record highs after eclipsing levels reached last summer. This marks nearly a 40% rally off of the lows seen in late October and caps an impressively stable run higher.
Cisco Systems (CSCO)
Click to Enlarge Shares of Cisco (NASDAQ: CSCO) are enjoying a rock solid rise out of their late December lows that has already bagged a 43% gain for investors as new record highs are set pretty much every day. This continues a move that stretches back to the lows set back in 2011 — during the U.S. credit rating downgrade scare.
Disney (DIS)
Click to Enlarge Fueled by excitement over the looming launch of its Disney+ streaming service, Disney (NYSE: DIS) shares have enjoyed a near-vertical rise over the past week, breaking up and out of a consolidation range going back to the summer of 2015.
Procter & Gamble (PG)
Click to Enlarge Shares of packaged consumer products maker Procter & Gamble (NYSE: PG) are extending a steady rally dating back to last April that has resulted in a gain of more than 50%.
Investors are playing a dangerous game that could end in crushing losses
Joe honed his investing skills as an analyst for Stock Advisor. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns.
What happened
Shares of GameStop ( NYSE:GME) extended their torrid recent gains on Wednesday as a horde of traders rushed to buy the video game company's stock in attempt to crush short-sellers and drive its price to astronomical levels.
So what
GameStop's shares are now up nearly 1,700% so far in 2021 -- and it's still January. An epic short squeeze is believed to be fueling the rally -- one led by an army of individual traders that are using social media sites like Reddit and Twitter to coordinate their strikes against short-sellers.
Now what
While no doubt amusing to Musk, Palihapitiya, and the legion of GameStop bulls who have enjoyed the stock's incredible ascent, the steep rally in its share price might not last much longer.
When did Tesla's downtrend end?
Tesla’s downtrend came to an end when it hit multi-year lows near the $180 price level in June. The price level has acted as a strong support for the stock in the past.
When did Tesla launch the CyberTruck?
Tesla launched the CyberTruck late in November, and the event was a disaster. Initially, the CyberTruck was not well-received, and there were questions about its design. Forbes even called it “ugly as sin.”
Is Tesla a short stock?
Tesla has always been one of the most-shorted stocks on Wall Street. Short sellers had piled onto Tesla in the first half of the year. With the stock having lost close to 40% of the value since the start of 2019, shorts were betting on that trend to continue.
Did Elon Musk make a profit in the third quarter?
Elon Musk Revealed a Surprise Profit in Third Quarter. Tesla posted a surprise profit in the third quarter of 2019, and that has undoubtedly been the primary reason behind the stock jumping 60% jump in 90 days. Heading into third-quarter earnings, the sentiment surrounding Tesla was extremely bearish.
Is Tesla stock volatile?
There are five key reasons behind the recent stellar performance. Tesla stock (NASDAQ: TSLA) has had a very volatile 2019. The EV stock endured a brutal drawdown in the first half of the year, only to reach new all-time highs by December. TSLA’s rise has particularly gathered pace over the last three months, soaring over 60% in that period.