Analyst Articles

Although it doesn’t make for a very interesting story, providing replacement parts for consumers can be just as profitable as unlocking the creative innovation that launches a new industry. Case in point: Cooper Tire & Rubber (NYSE: CTB). This company makes replacement tires for cars and trucks. It is the ninth-largest tire maker in the world and markets directly to consumers rather than supplying the parts needed for new cars where profit margins can be smaller. Tariff protection for tires was dropped in 2011, and Cooper… Read More

Although it doesn’t make for a very interesting story, providing replacement parts for consumers can be just as profitable as unlocking the creative innovation that launches a new industry. Case in point: Cooper Tire & Rubber (NYSE: CTB). This company makes replacement tires for cars and trucks. It is the ninth-largest tire maker in the world and markets directly to consumers rather than supplying the parts needed for new cars where profit margins can be smaller. Tariff protection for tires was dropped in 2011, and Cooper fell sharply when traders became concerned that cheap imports from China could hurt the company’s business. Those fears proved to be misplaced and Cooper saw sales and earnings rise as the stock price recovered. Despite strong financial performance, Cooper is trading with a price-to-earnings (P/E) ratio of about 5, less than half the industry average and well below the market average of about 14. Earnings… Read More

Each week, one of our investing experts answers a reader’s question in our the Q&A column at our sister site, InvestingAnswers.com. It’s all part of our mission to help consumers build and protect their wealth through education. This week’s question … Read More

Everyone knows fashion retailing is a cyclical business. The better the economy is, the more consumers spend. Conversely, when the economy is weak, people tend to stay at home and keep their purse strings tied tight. As a result, when it looks an economic rough patch is on the horizon, investors steer clear of retailers that sell anything but the basic necessities of life. After all, looking good isn’t quite as important during tough times. But there’s just one problem with that strategy: Sometimes that mindset doesn’t quite work to investors’ advantage. Right… Read More

Everyone knows fashion retailing is a cyclical business. The better the economy is, the more consumers spend. Conversely, when the economy is weak, people tend to stay at home and keep their purse strings tied tight. As a result, when it looks an economic rough patch is on the horizon, investors steer clear of retailers that sell anything but the basic necessities of life. After all, looking good isn’t quite as important during tough times. But there’s just one problem with that strategy: Sometimes that mindset doesn’t quite work to investors’ advantage. Right now, for example, there’s one retailer that’s managed to grow its top and bottom line for years now, no matter what kind of economic environment. Better yet, the stock has shrugging off bear markets on its way to becoming one of top-performing stocks for the past 10 years, rising more than 650%. And the next several years don’t look like they’re going to be any different. Amazing stats The Buckle (NYSE: BKE) is… Read More

Each week, one of our investing experts answers a reader’s question in our the Q&A column at our sister site, InvestingAnswers.com. It’s all part of our mission to help consumers build and protect their wealth through education. This week’s question will be answered by Investment Analyst David Sterman: Many of us invest for one reason: to build a big enough nest egg for retirement. Good old-fashioned stock picking is the preferred route for many investors but… Read More

Each week, one of our investing experts answers a reader’s question in our the Q&A column at our sister site, InvestingAnswers.com. It’s all part of our mission to help consumers build and protect their wealth through education. This week’s question will be answered by Investment Analyst David Sterman: Many of us invest for one reason: to build a big enough nest egg for retirement. Good old-fashioned stock picking is the preferred route for many investors but can be a bit daunting for the novice investor. This reader’s question addresses another type of investment that can provide you with a solid retirement strategy. Q. “I’m a long way away from it, but I’m starting to think about investing for retirement. I’ve heard of these mutual funds with a year attached to them and you pick the one that’s closest to the year that you expect to retire. How do those work exactly? And are they good?” — Paul, Manhattan, Kan. A. Paul, you’re talking about “target-date” funds, and the short… Read More