What are the stocks making the biggest moves before market opening? That’s right, some of the hottest companies in the industry have already taken a hard hit in the past few weeks. Before you get too excited though, take a look at the stocks that have suffered such massive losses. You’ll be amazed to see just how resilient some of these companies really are despite suffering huge losses. Here’s why some companies are doing so well despite tough times:
Netgear has certainly had its share of struggles. It has had to deal with some fundamental changes in the industry due to high-speed Internet. However, the company has managed to survive these setbacks and is now focusing on making more technological advancements in the future. The company released earnings earlier this month that is quite encouraging. Netgear is expected to report earnings of $25 million for the first quarter of 2021.
Another strong company on the “react” list is Unilever. Unilever is an organic food company that’s been around for a long time. It’s been steadily building up its cash reserves as it works to expand into new markets. In addition to its food business, Unilever also has soap, shampoo, and other household cleaning products. Its stock price has tumbled over the past few weeks as traders worry about the impact of natural disasters in the region.
While Unilever may be vulnerable to natural disasters, it’s not the only company that’s facing pressure from a rapidly declining consumer spending class. Wal-Mart has recently announced its intention to open a mega supercenter featuring hundreds of stores. Analysts predict the supercenter will generate significant store traffic. That should help Wal-Mart sells more merchandise at its already high prices.
The stocks of companies with a strong customer base are always a good buy. Wal-Mart and Unilever are both excellent choices to follow. After taking some well-deserved time off from their initial public offerings (the formerly issued bonds), these companies can once again return to growth. Analyst expectations are even more positive for both of these companies. If you’re interested in making money buying stocks like these, now is the time to do so.
We should also remember that stocks can only go up or down as the market conditions change. That makes investing in some companies a little bit risky. Stock prices do fluctuate, after all. Don’t get too caught up in looking at the Hot List or any company in particular. Instead, keep your attention focused on the broader market, and keep your eyes on those stocks that are showing strong signs of upward momentum.
When you’re watching Netgear, for instance, it’s important to remember that the company is doing very well in the broadband sector. If you find that the profit numbers for this sector (and the overall economy) are starting to look good, it’s likely that demand for this technology will also be increasing. So it’s a great time to invest in a stock like this, whether you’re anticipating that its price will go up or down. Just be sure that you get in before other investors take advantage of the opportunity!
One of the main reasons why some of the best stocks have performed well pre-market is because people who buy them know that the company has a solid business plan. In fact, the first page of Google is always full of stories from people who have bought great companies because they saw the business plan in action. Stock reports are great for showing what companies are doing, but they can’t tell you if a company is actually going to become profitable. Keep your focus on the broader market, and don’t let all of the talks about the hot stock report get to your head!