Growth Investing

It’s hard to believe, but the first quarter of 2017 is nearly in the books. And so far the market has continued its torrid pace. In fact, ever since the November election, the investing landscape has gone through a dramatic change of expectations with respect to economic growth, market valuations and inflation. And those expectations seem to be coming to fruition… #-ad_banner-#On March 10, the U.S. Bureau of Labor Statistics released employment data. Total nonfarm payroll employment increased by 235,000 in February, and the unemployment rate remained about the same at 4.7%. The consumer price index, which measures inflation, came… Read More

It’s hard to believe, but the first quarter of 2017 is nearly in the books. And so far the market has continued its torrid pace. In fact, ever since the November election, the investing landscape has gone through a dramatic change of expectations with respect to economic growth, market valuations and inflation. And those expectations seem to be coming to fruition… #-ad_banner-#On March 10, the U.S. Bureau of Labor Statistics released employment data. Total nonfarm payroll employment increased by 235,000 in February, and the unemployment rate remained about the same at 4.7%. The consumer price index, which measures inflation, came in at 2.74% last month, compared with 1.02% in February 2016. And residential housing starts jumped 6.2% in February over the same time last year. All these economic factors gave the Federal Reserve the green light to tighten the money supply by bumping interest rates up 25 basis points on March 15. Right now everything seems to be firing on all cylinders. Consumer confidence is at the highest level it’s been in 17 years. Unemployment is low, inflation is on target, housing is continuing to recover and the stock market is reaching new highs. As I’ve said many times before,… Read More

Recently, I had to take an exam for yet another license my industry requires me to have. Aside from feeling like I’d given birth to a compliance officer afterwards, I came away from the experience, newly minted license in hand, with an investment idea. I took the exam, on a computer workstation of course, at one of the many testing centers owned and managed by British education and multi-media publisher Pearson PLC (NYSE: PSO). Although my exam was specific to the financial industry, qualification exams for other professions are also administered at the centers, including nursing and engineering to name… Read More

Recently, I had to take an exam for yet another license my industry requires me to have. Aside from feeling like I’d given birth to a compliance officer afterwards, I came away from the experience, newly minted license in hand, with an investment idea. I took the exam, on a computer workstation of course, at one of the many testing centers owned and managed by British education and multi-media publisher Pearson PLC (NYSE: PSO). Although my exam was specific to the financial industry, qualification exams for other professions are also administered at the centers, including nursing and engineering to name a few.  Honestly, when I first looked at the stock, I was not impressed.     As you probably know, I’m not a chart guy. But if you go by these tea-leaves, the wiggles aren’t encouraging — and neither are the fundamentals. Earnings Per Share (EPS) has declined, on average, 131% on an annual basis over the last two years. Annual revenue has shrunk by 9.5% on average for the same period. But the short-term pain may be paving the way for long term gain. #-ad_banner-# Pearson, like most large publishing and media companies, is grappling with the disruptive technological… Read More

Last month, Reuters uncovered an internal report from the U.S. Department of Homeland Security estimating the cost of a border wall with Mexico at $21.6 billion. The report projected a timeframe of nearly four years for construction. Whatever your view on the wall may be, that is a huge project. It amounts to more than a full year of sales at Fluor Corp (NYSE: FLR), the world’s largest engineering firm by revenue, or 5.6 times annual revenue at leading industrial materials firm Martin Marietta Materials (NYSE: MLM). Can companies afford to pass up the opportunity to… Read More

Last month, Reuters uncovered an internal report from the U.S. Department of Homeland Security estimating the cost of a border wall with Mexico at $21.6 billion. The report projected a timeframe of nearly four years for construction. Whatever your view on the wall may be, that is a huge project. It amounts to more than a full year of sales at Fluor Corp (NYSE: FLR), the world’s largest engineering firm by revenue, or 5.6 times annual revenue at leading industrial materials firm Martin Marietta Materials (NYSE: MLM). Can companies afford to pass up the opportunity to bid on such a project? One company did just that, publicly refusing to participate. It’s one of the largest cement producers in North America and could have made billions on materials sales. But this company may still win out and, even better, shares are attractively-priced for strong 2017 fundamentals. #-ad_banner-# The Surprising Winner In The Border Wall Construction It wasn’t a complete surprise when $12 billion Cemex (NYSE: CX) didn’t show up on the list of initial bidders for the border wall project issued by the Department of Homeland Security.  The Mexican industrial company has a huge footprint in… Read More

Jim Cramer’s investment picks have captured headlines and the dreams of investors for years. This one-time hyper-successful hedge fund manager-turned television personality attracts a huge audience of investors with his market pontifications. His following is so influential that a stock market phenomenon, known as the “Cramer Bounce” often occurs after he touts a particular stock. That’s right, this single individual is thought to have the power to move markets. The Man Behind The Legend Jim Cramer has reached legendary status on Wall Street with his often uncannily accurate stock calls and hyper-energetic persona. Not only has he amassed millions of… Read More

Jim Cramer’s investment picks have captured headlines and the dreams of investors for years. This one-time hyper-successful hedge fund manager-turned television personality attracts a huge audience of investors with his market pontifications. His following is so influential that a stock market phenomenon, known as the “Cramer Bounce” often occurs after he touts a particular stock. That’s right, this single individual is thought to have the power to move markets. The Man Behind The Legend Jim Cramer has reached legendary status on Wall Street with his often uncannily accurate stock calls and hyper-energetic persona. Not only has he amassed millions of followers who hang on his every word, I;ve even seen trading platforms boasting a built-in Jim Cramer stock picks data feed. But Cramer was not always a public persona. Early in his career as a reporter, he was so poor that he lived in his car for several months. Despite creating popular lead stories for high-profile cases like the Ted Bundy murders, Jim was not satisfied with the low pay of a reporter’s life. #-ad_banner-#Seeing a legal career as a way out of the low-income lifestyle, he attended from Harvard Law School and was admitted to the New York Bar… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the 1950s. If Trump and his allies have their way, it could lead to as much as $1 trillion in infrastructure-related spending over the next 10 years. That’s a lot of cement (and other resources and services), but it’s just icing on the cake when it comes to the appeal these companies hold for investors. So… Which companies are likely to profit the most? Here’s Nathan’s take on some of the opportunities for investors — and it’s actually a prelude to his next issue, which is due out in a couple weeks. If you’re interested in learning more about Scarcity &… Read More

2017 is expected to bring the highest gasoline prices since 2014. According to a recent report from Triple A, the average cost for regular, unleaded gas is expected to rise to $2.49 per gallon this year, up from $2.13 in 2016. That’s bad news for corporate America — higher energy prices means rising operating expenses for most of the S&P 500. However, there is one company that is actually in position to benefit. Rising gasoline prices are a profit trigger for this industry leader. That’s why I am expecting shares to close to 2017 at a new all-time high. Union… Read More

2017 is expected to bring the highest gasoline prices since 2014. According to a recent report from Triple A, the average cost for regular, unleaded gas is expected to rise to $2.49 per gallon this year, up from $2.13 in 2016. That’s bad news for corporate America — higher energy prices means rising operating expenses for most of the S&P 500. However, there is one company that is actually in position to benefit. Rising gasoline prices are a profit trigger for this industry leader. That’s why I am expecting shares to close to 2017 at a new all-time high. Union Pacific (NYSE: UNP) owns and operates the largest rail network in the United States. It operates 8,500 locomotives over 32,100 route-miles in 23 states west of Chicago, Illinois and New Orleans, Louisiana. Union Pacific stock has been on a roll. Shares are up 23% in the last 12 months, a 54% premium to the S&P 500. Take a look below. Looking forward, I am expecting another market-beating performance from Union Pacific in 2017. A powerful profit trigger is on the horizon for the entire US rail shipping industry and Union Pacific in particular. When gasoline is cheap, companies… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA The Boston University School of Medicine estimated in 1900 that 80%… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA The Boston University School of Medicine estimated in 1900 that 80% of the children in Boston suffered from rickets, a softening of the bones and a symptom of vitamin D deficiency. Dairies started adding vitamin D to milk in the 1930s, helping about a third of the population that got insufficient amounts of the vitamin and the incidence of rickets in Boston dropped to almost nothing. These days, almost all milk is fortified with vitamin D and other minerals. It’s an industry standard that we take for granted but one that provides a huge benefit to society. #-ad_banner-#Now comes an exciting development about a healthy fortification of a different sort. In… Read More

Dreams sometimes really do come true. The kid that everyone dismisses as a regular daydreamer can change the world with their unconventional ideas. It’s even possible for the child who was obsessed with space travel and other crazy thoughts to turn these dreams into reality. Entrepreneur and billionaire Elon Musk is the embodiment of this type of dreamer. He took the electric cars and space travel he imagined as a child and is working towards making those dreams become a reality. Tesla is now a nearly $43 billion company and SpaceX stock could one day be the next hot IPO. Read More

Dreams sometimes really do come true. The kid that everyone dismisses as a regular daydreamer can change the world with their unconventional ideas. It’s even possible for the child who was obsessed with space travel and other crazy thoughts to turn these dreams into reality. Entrepreneur and billionaire Elon Musk is the embodiment of this type of dreamer. He took the electric cars and space travel he imagined as a child and is working towards making those dreams become a reality. Tesla is now a nearly $43 billion company and SpaceX stock could one day be the next hot IPO. It is nearly certain that Musk takes this same forward-looking approach when investing his own money. I’m very curious about the latest positions taken by this business genius, especially with all the recent publicity on SpaceX. How Musk Made His Fortune Elon was born in Australia in 1971 and hit the global wealthy list in 1999 with the sale of his first company, Zip2, to Compaq for $307 million (of which Musk received $22 million). Rather than relax on the beach for the rest of his life, he used this money to pursue his dreams of changing the world. Read More

Few industries have been hit as hard as pharmaceuticals over the past year. From public outrage over price increases to the potential for government oversight into profits, the group hasn’t enjoyed the double-digit gains seen across the rest of the market. Drugmakers and investors thought they dodged a bullet in the presidential election, but the new administration has been just as vocal about drug prices as the last. In this darkest hour, there may be some light shining through to the rest of the year. A new leader at the Food and Drug Administration (FDA) could end the industry’s drought… Read More

Few industries have been hit as hard as pharmaceuticals over the past year. From public outrage over price increases to the potential for government oversight into profits, the group hasn’t enjoyed the double-digit gains seen across the rest of the market. Drugmakers and investors thought they dodged a bullet in the presidential election, but the new administration has been just as vocal about drug prices as the last. In this darkest hour, there may be some light shining through to the rest of the year. A new leader at the Food and Drug Administration (FDA) could end the industry’s drought of approvals. The fundamental shift to an older society continues to support higher sales and Washington has yet to put together a plan that would threaten pricing. I’ve been following the best-of-breed companies in the space, waiting for a potential turnaround in investor sentiment. That turnaround may be coming — and it could happen just as two leaders boost sales with new blockbuster drugs. Pharma Is Ready To Bounce Back Pharmaceutical companies have been rocked over the past year on regulatory oversight and patient anger over drug pricing. The PowerShares Dynamic Pharmaceuticals ETF (NYSE: PJP) is up just 2.8%… Read More

These days, any time a big-name company (most often a “hot tech stock”) files its initial registration to become a publicly traded company, I field inquiries from friends, family and readers on what my thoughts are regarding said company — even though I already know that the majority of these folks have already made up their minds and will likely ignore my advice… That’s because what I tell them isn’t what they want to hear. So they’ll disregard and seek opinions that match their own. This is called confirmation bias. This scenario played out when popular social-media company Snapchat (NYSE:… Read More

These days, any time a big-name company (most often a “hot tech stock”) files its initial registration to become a publicly traded company, I field inquiries from friends, family and readers on what my thoughts are regarding said company — even though I already know that the majority of these folks have already made up their minds and will likely ignore my advice… That’s because what I tell them isn’t what they want to hear. So they’ll disregard and seek opinions that match their own. This is called confirmation bias. This scenario played out when popular social-media company Snapchat (NYSE: SNAP) went public March 2. For the uninitiated, Snapchat is basically a platform that allows you to use the camera on your phone to send pictures or short videos (aka “snaps”) to your friends or the public at large, along with a host of animations and effects that allow the user to enhance their image or story. Then, once a friend views the snap, it will disappear. (For more information, ask a kid.) The video-messaging app raised $3.4 billion in its initial public offering (IPO), making it the biggest social-media IPO since Twitter (NYSE: TWTR) went public in early 2014. Read More