I love a good underdog stock. When the crowd thinks a company’s fortunes are in decline, I like to take a closer look to see if there’s solid evidence to support their point of view. Often there’s not. #-ad_banner-#As a contrarian, I’ve repeatedly made outsized profits trading what others shy away from. But rather than the “Dogs of the Dow,” I prefer the underdogs of the S&P 500. (My colleague Christian Hudspeth laid out a similar strategy last month.) In particular, I’m excited about the prospects for the world’s largest multinational consumer electronics retailer, Best Buy (NYSE: BBY). The bears… Read More

I love a good underdog stock. When the crowd thinks a company’s fortunes are in decline, I like to take a closer look to see if there’s solid evidence to support their point of view. Often there’s not. #-ad_banner-#As a contrarian, I’ve repeatedly made outsized profits trading what others shy away from. But rather than the “Dogs of the Dow,” I prefer the underdogs of the S&P 500. (My colleague Christian Hudspeth laid out a similar strategy last month.) In particular, I’m excited about the prospects for the world’s largest multinational consumer electronics retailer, Best Buy (NYSE: BBY). The bears will argue the company’s glory days are over. (In fact, my colleague Marc Bastow recently argued just that.) Consumer electronic sales are slumping, with researcher NPD projecting they will drop 2.6% in the second quarter. More important, the bears will tell you, consumers are more apt to purchase their electronics online than in brick-and-mortar stores. With e-retailers like Amazon.com (Nasdaq: AMZN) operating on thinner margins, they can offer lower prices. BBY has seen the trend toward online buying and is fighting back. Online revenue is growing quickly, jumping 29% year over year in the first quarter. The company recently improved… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its recent chart breakout, solid fundamental outlook, attractive valuation and strong dividend yield. The bank, often referred to as RBC, is Canada’s largest financial institution and one of the largest banks in the world based on deposits, revenue and market cap. It offers personal and commercial banking services, wealth management, insurance, investor services and capital markets products. Gains from its consumer banking and wealth management divisions are driving growth. The bank recently reported better-than-expected second-quarter results. Net income rose 15% from the same quarter last year, to $2.2 billion (Canadian). And earnings came in at $1.47 per share, beating the consensus… Read More

Here’s a little-known statistic that could prove highly profitable for you: Over the next four years, worldwide consumption of non-alcoholic beverages is expected to grow at a 6% compound annual rate.  In 2010, the retail market for non-alcoholic beverages was $135 billion. By 2020, it’s expected to increase by $300 billion. Global urban population growth, an expanding middle class and higher disposable incomes are driving this trend. With a strong chart and upbeat fundamental outlook, I’m excited about America’s third-largest soft drink company, Dr Pepper Snapple Group (NYSE: DPS), which makes six of the top 10 non-cola soft… Read More

Here’s a little-known statistic that could prove highly profitable for you: Over the next four years, worldwide consumption of non-alcoholic beverages is expected to grow at a 6% compound annual rate.  In 2010, the retail market for non-alcoholic beverages was $135 billion. By 2020, it’s expected to increase by $300 billion. Global urban population growth, an expanding middle class and higher disposable incomes are driving this trend. With a strong chart and upbeat fundamental outlook, I’m excited about America’s third-largest soft drink company, Dr Pepper Snapple Group (NYSE: DPS), which makes six of the top 10 non-cola soft drinks. In addition to its namesake Dr Pepper and Snapple drinks, the beverage company offers nearly 50 other brands, including 7Up, Mott’s and Canada Dry. These products are distributed throughout North and Latin America. Dr Pepper is clearly doing something right. In 2013, Citi Research said U.S. retail soft drink sales fell for the first time in 15 years. In the first quarter of 2014, they declined another 1.9%. Despite these drops, Dr Pepper’s sales volume rose 1% in the most recently reported first quarter, and revenue for the period increased 1.3%, to $1.4 billion. Through productivity improvements and reduced… Read More

Here are two important facts if you’re a trader: #-ad_banner-#First, research firm Nielsen just reported that global consumer confidence is at its highest level since 2007. Second, in March, U.S. consumer spending rose at the fastest pace in nearly five years. MasterCard (NYSE: MA), the world’s second largest credit card company, is a clear beneficiary of heightened consumer activity.  The company recently reported strong first-quarter results. Revenue for the period swelled 14% year over year to $2.2 billion as people around the globe plunked down their credit cards. Earnings jumped 18% to $0.73 per share. MasterCard processed 9.8 billion transactions… Read More

Here are two important facts if you’re a trader: #-ad_banner-#First, research firm Nielsen just reported that global consumer confidence is at its highest level since 2007. Second, in March, U.S. consumer spending rose at the fastest pace in nearly five years. MasterCard (NYSE: MA), the world’s second largest credit card company, is a clear beneficiary of heightened consumer activity.  The company recently reported strong first-quarter results. Revenue for the period swelled 14% year over year to $2.2 billion as people around the globe plunked down their credit cards. Earnings jumped 18% to $0.73 per share. MasterCard processed 9.8 billion transactions in the first quarter, 14% more than the same period last year. Worldwide purchases increased 13% from the year-earlier quarter, totaling $759 billion. Of this amount, only 35%, or $268 billion, came from the United States. That represents a 9% year-over-year increase, while Latin America, Asia and Europe all saw strong growth ranging between 11% and 22%. Management reiterated that it expects revenue growth of 11% to 14% from current levels by 2015. Several catalysts underlie this strong projected growth. The payment provider just inked two new card agreements with major retailers Wal-Mart (NYSE: WMT), Sam’s Club and Target (NYSE:… Read More

Peter Lynch talks about paying attention to the “power of common knowledge.” His advice is to notice which stores and products are most popular when you visit the mall. Then you do your research, and if the story checks out, buy the shares.  #-ad_banner-#A recent visit to my local Costco Wholesale (Nasdaq: COST) on a weekday afternoon was instructive. The parking lot was jam-packed and it took about 15 minutes to find a spot. Once inside, the aisles were also packed with shoppers. Oh, and despite the many discounts (or maybe because of them), I left with a… Read More

Peter Lynch talks about paying attention to the “power of common knowledge.” His advice is to notice which stores and products are most popular when you visit the mall. Then you do your research, and if the story checks out, buy the shares.  #-ad_banner-#A recent visit to my local Costco Wholesale (Nasdaq: COST) on a weekday afternoon was instructive. The parking lot was jam-packed and it took about 15 minutes to find a spot. Once inside, the aisles were also packed with shoppers. Oh, and despite the many discounts (or maybe because of them), I left with a bill well into the triple digits. My experience is not unique. With scores of customers pouring into Costco’s stores, it’s no wonder the company is doing well. Three factors seem to be driving Costco’s success: new store growth, new member sign-ups and strong existing membership renewals. Currently, there are 650 Costco stores worldwide, with the majority (462) in the U.S. Two years ago, management announced plans to open at least 15 new stores per year. This target has now doubled to 30. Membership plays an important role in Costco’s business model. Member fees enable the company to sell products at… Read More

Over the past five years, this company has tripled its revenue. The stock has done even better, increasing from about $5 to over $50, providing investors with a rare “10-bagger.” #-ad_banner-#Now, management has pledged to double the $2 billion in annual revenue achieved in 2013 to $4 billion by 2016. As ambitious as this may seem, if any company can pull it off, it’s athletic gear maker Under Armour (NYSE: UA). Right now, Under Armour is primarily an apparel company. However, management has recognized that increasing market share in athletic footwear is key to growth. At present, it… Read More

Over the past five years, this company has tripled its revenue. The stock has done even better, increasing from about $5 to over $50, providing investors with a rare “10-bagger.” #-ad_banner-#Now, management has pledged to double the $2 billion in annual revenue achieved in 2013 to $4 billion by 2016. As ambitious as this may seem, if any company can pull it off, it’s athletic gear maker Under Armour (NYSE: UA). Right now, Under Armour is primarily an apparel company. However, management has recognized that increasing market share in athletic footwear is key to growth. At present, it controls only 2.4% of the U.S. running shoe market — but this sliver of market share accounted for 13% of the company’s revenue last year. In comparison, footwear giant Nike (NYSE: NKE) controlled 59% of the U.S. shoe market but derived 57% of its revenue last year from footwear sales. Closing the market share gap presents Under Armour with a challenge and opportunity. One key is innovation in lightweight shoe technology. According to a study by researcher NDP Group, sales of lightweight running shoes increased 22% from late 2012 to late 2013.  Under Armour’s entry in the lightweight niche is… Read More

In his book “One Up On Wall Street,” Peter Lynch said that he loved “boring” stocks because they were often overlooked by the excitement-seeking crowd. And it doesn’t get much more boring than today’s pick. #-ad_banner-#The company is a leading and highly profitable producer of fluid motion and control products in over 50 countries. It produces pumps, seals and valves for the oil and gas, chemical, water and power industries. Nothing exciting there, but both the technicals and fundamentals say the stock is an excellent trading opportunity. Flowserve (NYSE: FLS) pumps have some… Read More

In his book “One Up On Wall Street,” Peter Lynch said that he loved “boring” stocks because they were often overlooked by the excitement-seeking crowd. And it doesn’t get much more boring than today’s pick. #-ad_banner-#The company is a leading and highly profitable producer of fluid motion and control products in over 50 countries. It produces pumps, seals and valves for the oil and gas, chemical, water and power industries. Nothing exciting there, but both the technicals and fundamentals say the stock is an excellent trading opportunity. Flowserve (NYSE: FLS) pumps have some high-profile uses, such as making snow for ski hills at the Sochi Olympics. But the company’s bread-and-butter products are monitoring controls, valves and seals used in oil and gas exploration, from the ocean floor to the Canadian oil sands. Making the stock even more likely to fly below the radar is that management has been scaling back operations to sharpen its focus on key revenue-generating segments. In late March, Flowserve announced the divestment of its all-welded ball valve product line, Naval OY. The business was sold to a Finnish valve manufacturer for an undisclosed sum. The company also… Read More

Technology stocks remind me of a normally well-behaved child who occasionally throws a temper tantrum.  #-ad_banner-#When the overall market is strong — as it has been for the past several years — tech stock performance is typically stellar. On the other hand, when bear markets do occur, tech stocks typically lead the way lower. With the Nasdaq Compsite Index now trading near 4,200, up more than 80% from a low just under 2,300 in October 2011, the tech “child” has been very, very good lately. Drilling deeper into the tech sector, some of its best performers have been… Read More

Technology stocks remind me of a normally well-behaved child who occasionally throws a temper tantrum.  #-ad_banner-#When the overall market is strong — as it has been for the past several years — tech stock performance is typically stellar. On the other hand, when bear markets do occur, tech stocks typically lead the way lower. With the Nasdaq Compsite Index now trading near 4,200, up more than 80% from a low just under 2,300 in October 2011, the tech “child” has been very, very good lately. Drilling deeper into the tech sector, some of its best performers have been semiconductor stocks. Take NXP Semiconductor (Nasdaq: NXPI), for example, which I wrote about in November . It’s brought readers who took my advice nearly 40% returns in less than five months, and the stock is up more than 90% in the past year. SanDisk (Nasdaq: SNDK), which I recommended a couple of weeks ago , is already up 10% since then, and nearly 50% in the past 52 weeks. This week, it’s another semiconductor stock that I believe has strong potential: Freescale Semiconductor (NYSE: FSL). Based in Austin, Texas, Freescale is a global… Read More

Las Vegas Sands (NYSE: LVS), a leading developer and operator of gaming resorts in the U.S. and Asia, has the combination of a strong chart and powerful fundamental growth story. Since its June 2013 low, shares have surged nearly 85%, and the company has strong revenue and earnings’ growth potential. #-ad_banner-#Las Vegas Sands’ luxurious properties house classy convention centers, elaborate exhibition facilities, premium hotel accommodations, upscale retail outlets, and most importantly, world-class gaming and entertainment complexes. While the company obviously operates in Las Vegas, its facilities have become especially popular in Macau. Macau is China’s only legal gambling district. An… Read More

Las Vegas Sands (NYSE: LVS), a leading developer and operator of gaming resorts in the U.S. and Asia, has the combination of a strong chart and powerful fundamental growth story. Since its June 2013 low, shares have surged nearly 85%, and the company has strong revenue and earnings’ growth potential. #-ad_banner-#Las Vegas Sands’ luxurious properties house classy convention centers, elaborate exhibition facilities, premium hotel accommodations, upscale retail outlets, and most importantly, world-class gaming and entertainment complexes. While the company obviously operates in Las Vegas, its facilities have become especially popular in Macau. Macau is China’s only legal gambling district. An Asian casino hotspot, it has wrested the title of the world’s casino capital from Las Vegas. Since 2002, when China opened Macau to foreign casino operators, gaming revenue has surged from less than $3 billion a year to $45 billion in 2013, which represents a 19% increase from 2012. In comparison, Las Vegas has struggled to recover from the financial crisis, and 2013 revenue was up just 3% year over year, to $6.4 billion. This year, Deutsche Bank analysts project gambling revenue in Macau will rise 20% from 2013 levels. By 2017, analysts at brokerage firm CLSA expect $77 billion… Read More

Were you one of the approximately 4 in 10 Americans who made a New Year’s resolution this year? By any chance, was your resolution to lose weight? If so, that’s not surprising. Shedding pounds is one of the most popular goals of those who make resolutions, particularly after holiday feasting.#-ad_banner-# Wonder how your resolution could lead to a profitable trade? The stock is Herbalife (NYSE: HLF). Shares posted triple-digit gains in 2013, and the stock is poised to provide outstanding returns again this year. One main reason for its performance is a global obesity epidemic that has created a multi-billion-dollar… Read More

Were you one of the approximately 4 in 10 Americans who made a New Year’s resolution this year? By any chance, was your resolution to lose weight? If so, that’s not surprising. Shedding pounds is one of the most popular goals of those who make resolutions, particularly after holiday feasting.#-ad_banner-# Wonder how your resolution could lead to a profitable trade? The stock is Herbalife (NYSE: HLF). Shares posted triple-digit gains in 2013, and the stock is poised to provide outstanding returns again this year. One main reason for its performance is a global obesity epidemic that has created a multi-billion-dollar market for its weight loss products. According to Transparency Market Research, the global weight management market is estimated to reach $650.9 billion in 2015, with weight management services being the fastest-growing segment. Herbalife, which uses a network of independent distributors to sell its products in over 80 countries, appears ripe to profit from this growing market. For the past 19 quarters, Herbalife has posted results that surpassed analyst expectations. In October, the company reported record third-quarter earnings and its 16th consecutive quarter of double-digit revenue growth. Revenue for the period increased 19% from the year-ago period, to $1.2 billion, and… Read More