In stressful times like these, it’s important to distinguish between investors’ appetite for stocks in general and the actual outlook of each company. The market plunge is related to top-down concerns about the U.S. economy, but a bottom-up approach is still warranted. This is because — despite the weak… Read More
David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon
Analyst Articles
Great companies know the key to future success lies in the steps you take today. These companies dole out massive amounts of cash to their engineering teams to develop cutting-edge products that will provide for sales and profit growth in the… Read More
Here we go again. This week is starting off where last week ended — on a dismal note. Since hitting an intra-day peak of 1,346 back on July 22, the S&P 500 Index is on track (as of Aug. 8) to mark its 10th losing session in the last… Read More
The Top Bargain Stocks in the S&P 500
With the outlook for the U.S. economy in question for the rest of the year, this is a bad time to pursue high-priced growth stocks. Any hit to growth forecasts can lead to a double hit from both lowered profit forecasts… Read More
Forget Netflix, Buy This Stock Instead
We’re coming up on the one-month anniversary of Netflix’s (Nasdaq: NFLX) fateful decision to sharply boost its monthly pricing. The sudden jolt led many customers to vent their disapproval, and the video-rental service eventually conceded it will lose a chunk of customers in coming months. A large… Read More
Ford or GM: Which Stock is the Better Bargain?
As the calendar flipped from 2010 to 2011, stock strategists routinely included both Ford (NYSE: F) and GM (NYSE: GM) among their top picks for the coming year. After all, both car makers had staged a remarkably recovery and looked poised to boost sales and profits at a continued robust pace. Seven months later, the wheels have fallen off, and each stock trades near a 52-week low. Judging by the stock price movements for both of these companies, you would think consumers are about to stop buying cars and trucks, as was the case in 2008. Will… Read More
As the calendar flipped from 2010 to 2011, stock strategists routinely included both Ford (NYSE: F) and GM (NYSE: GM) among their top picks for the coming year. After all, both car makers had staged a remarkably recovery and looked poised to boost sales and profits at a continued robust pace. Seven months later, the wheels have fallen off, and each stock trades near a 52-week low. Judging by the stock price movements for both of these companies, you would think consumers are about to stop buying cars and trucks, as was the case in 2008. Will this really be the case? After all, the economy was imploding in 2008. Now, it’s merely flat. Another question: if investors are being overly bearish about these automakers, then which one has the better looking stock right now? First, let’s take a quick look at how business is faring so far this year. Thee figures in the table below compare the first six months of 2011 with the first six months of 2010. One item quickly jumps out. Even though Ford and GM have both posted similar sales gains in the first… Read More
Investors are pressing the “Sell” button as fast as they can, dumping stocks that have already fallen 20% or 30% on fears they’ll fall even more in the sessions to come. The current environment appears based on fear more than fact. Indeed, the… Read More
The Best-Performing ETFs (so far) of 2011
Investing in stocks in 2011? Sadly, that’s not where the action has been. For the most part, the biggest gains for the year have been reaped in precious metals, energy and agriculture. Plain old equities are on track for forgettable year after posting stunning gains in the prior two years. Read More
The Deepest Bargain Stocks on the Market
When a stock such as Apple (Nasdaaq: AAPL) or Chipotle Mexican Grill (NYSE: CMG) is universally loved, you should think twice about buying in, lest you arrive as the euphoria starts to fade. Instead, look for stocks that aren’t being chased by the crowd. These stocks often hit a rough… Read More
The U.S. economy sure looks dicey. This week’s trading kicked off with news that the Institute of Supply Management’s (ISM) index of manufacturing activity came in well short of forecasts — just another sign the economy has slowed. You may think… Read More