I love the company ORACLE because they have delivered consistent earnings and sales for years. As far as the stock goes, I am bullish, but near-term, I do believe many of the big-cap technology companies are way overdue to pull back. If you are looking to buy, you may want to wait. Long-term, the company and stock remain in fine shape.
Question: Is defense contractor Raytheon (RTN) a Teflon stock? — Jim (Worcester, MA)
No stock is a “Teflon” stock. I still remember when Dell, Cisco, and Yahoo were considered “Teflon” stocks. Things do change. As far as Raytheon, it's a great company, but maybe the stock is ahead of itself. But long-term, as long as they continue to deliver their consistent earnings and revenue growth, the stock should do just fine.
Question: I usually get my lunch at Panera Bread (PNRA) and I notice it's rapidly expanding all over the place. Is it a buy? — Becky (Rutherford, NJ)
I love Panera Bread, but would be wary of the stock. Restaurant stocks have had their way recently on the back of the plunge in oil prices, so I am not sure there is much more to go near-term. I would suggest the mid-50's as a better place to look at the stock.
Question: Why does the stock market immediately react when breaking news hits the wires? I never understood the immediate correlation. — Mary (Tempe, AZ)
Mary, trillions of dollars watch the market on a minute-by-minute basis. These days, news travels fast, and when the news hits, those trillions of dollars pounce. There is a direct correlation between the movement of stocks and the good or bad news that comes out, and the reaction is usually immediate.