The overnight news of a new round of trade negotiations between the US and China was just what the doctor ordered. Sure the overall market sprinted higher Thursday. More importantly, there was a clear changing of the guard.
Meaning it was no longer boring large cap income stocks at the top of the leader board. This was much more of a “Risk On” rally where aggressive growth stocks finally led the charge.
Alibaba (BABA) is a prime example. Shares have been suppressed this year under the cloud of the China trade deal. So even though it is expected to grow earnings by 28% per year with shares trading 26% below the average Wall Street target price, it was finding it hard to tread higher…til now.
The next 30 days waiting for a trade negotiations is like an amnesty period for the market. The low rate environment makes stock ownership uber-attractive with upward pressure on stock prices. And yes, the stocks leading the pack over that 30 day period will be those most held back.
So we don’t just any old growth stock. We want to get downright GREEDY with growth. And that is exactly what you will find in this targeted screen below.
Sure the POWR Ratings are represented as we started this research process with only A & B rated Buy stocks.
Then we amped up the growth not accepting any stocks with less than 20% expected growth over the next 3-5 years. Remember that this aged bull market is seeing declining earnings with only single digit growth expectations going forward. So these stocks are downright dripping with excess growth potential.
But hey, expectations are only the hopes of the analysts. We want to increase our odds that these firms actually attain that growth or shares will suffer.
The best insurance policy I know of is that the most recent earnings report led to upward estimates from Wall Street analysts. Meaning that the company impressed analyst so much with the most recent quarterly announcement that they raised earnings expectations for the future. Not just for this year…but for next year as well.
The reason is simple. It has been statistically proven that stocks that had a beat and raise earnings report in the most recent quarter is more likely to do it again in the future. Granted, that’s not a guarantee of future earnings growth…but it’s the next best thing to increase your odds of success.
OK..enough set up. You get the idea that we want to rev up our portfolios with an extra dose of growth because their time to shine is now. The list of 15 greedy, greedy growth stocks below will get you headed in the right direction.
|Company||Ticker||Price||Market Cap ($mil)||Growth %|
|Alamos Gold Inc||AGI||$7.25||$2,827||55.18|
|Nrg Energy Inc||NRG||$37.21||$9,414||36.26|
|Osisko Gold Ltd||OR||$13.16||$1,882||27.03|
|Shake Shack Inc||SHAK||$104.61||$3,901||22.50|
Want More Stock Ideas?
I just added 2 aggressive growth stocks to the Reitmeister Total Return portfolio this morning. They join a full portfolio built to outperform in this unique market environment.
To be honest, they are not all growth stocks. Here is the actual portfolio construction at this time:
6 aggressive growth/value stocks
5 conservative, large cap growth & income stocks
2 inverse ETFs
Yes…I still have some safety in the portfolio because we have been down this road before on the trade negotiations. Every previous white flag has devolved into a fresh war of words and increased downward pressure on stock prices.
So it is still prudent to balance out our growth positions with these more defensive insurance policies until a trade deal is not just being negotiated…but FINALIZED!
To learn more about the Reitmeister Total Return portfolio, my ongoing market outlook and the specific 11 stocks and 2 inverse ETFs recommended to clients…then just click the link below to get started.
Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA - Get Rating) shares were trading at $178.94 per share on Thursday afternoon, up $4.61 (+2.64%). Year-to-date, Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA - Get Rating) has gained 30.55%, versus a 20.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|BABA||Get Rating||Get Rating||Get Rating|
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|NTES||Get Rating||Get Rating||Get Rating|
|SHAK||Get Rating||Get Rating||Get Rating|
|TWTR||Get Rating||Get Rating||Get Rating|