Earlier this month we released our highly anticipated special report: 9 “Must Own” Growth Stocks for 2020.

Since then we have pulled back the curtain on several of these stocks in recent articles. Now it’s time to reveal the final 4 stocks; Alibaba (BABA), Incyte (INCY) , Navient (NAVI) and XPO Logistics (XPO) . Enjoy!

Alibaba (BABA)

This is really a bonus pick because I already featured it in the first article in this series. However, I feel strongly that this is the easiest stock to get on board with given it’s broad appeal. So that makes Alibaba worth highlighting one more time.

That’s because for every reason that you have admired the US based FANG stocks, that is exactly why you should appreciate the upside potential for this Chinese ecommerce giant.

The beauty is that BABA’s long term growth potential may even be greater than the FANG stocks given the still large percentage of the Chinese population that is not yet online. Plus BABA has aspirations to go beyond their native borders to provide ecommerce and cloud services in other expanding parts of the globe.

When you add it altogether you understand why analysts expect them to achieve 26% annual earnings growth into the future. But given the average earnings beat of 18% the past four quarters, then it says that growth may be even better than expected.

For all these reasons and more Alibaba needs to be part of any list of growth stocks to own for 2020. And that is also why it is one of the stocks in the Reitmeister Total Return portfolio.

Incyte (INCY)

This biopharma drug company was a runaway success all the way up to a peak of $150 back in 2017…then the wheels fell off the wagon with shares diving 60% over the next year. Since then shares have been treading water all the while they are enjoying renewed growth thanks to the runaway success of the drug, Jakafi.

The proof of their renewed success shows up in a string of quality earnings reports with average 47% surprise the past four quarters. That includes the Q3 2019 beat of 56%. All the while shares are still a far cry from the previous highs. And that spells opportunity!

Analysts are slowly but surely coming back around to this company with projected earnings growth of 32% per year into the future. However, insiders know what’s up. That is why there is a handful of fresh insider buys of late that are strong leading indicators of Incyte’s investment potential.

The second half of 2019 was all about defensive income stocks taking the lead as investors were worried about the negative effects of China trade. Coming into 2020 there should be renewed risk appetite. A quality growth biotech like Incyte is exactly what the Doctor will order for outperformance in the year ahead.

Navient (NAVI)

This growth stock doesn’t make sense on the surface. Meaning that Navient is a consumer finance company. That is typically a slow and steady business not unlike banking.

Now let me pullback the curtain on the driving force behind their expected 25% annual growth rate. They are focused on education loans.

Aha…now you get it because the cost of a college education has skyrocketed at a 400% faster pace than underlying inflation.

Maybe I am more acutely aware of this issue because I have one daughter at Northwestern ($70,000 per year) and another who just got accepted to Augustana College at a lower, but still eye popping $55,000 per year.

Until there is a better path to a 6 figure income, than the demand for college educations will remain robust and companies like Navient will continue to benefit. So as they say, “if you can’t beat’em…join’em”. And that should be plenty good reason to add NAVI to your portfolio for ample growth in the years ahead.

XPO Logistics (XPO)

For the better part of 2016, 2017 and 2018 this transportation and logistics company was a steady performer. It’s like operations were on cruise control rolling out beat after beat with shares rallying 500% over that three year stretch.

Then the wheels fell off the wagon!

In late 2018 they got hit with a series of earnings misses. And even after they righted the ship in 2019, then the next concern was how the China trade dispute would harm transportation companies. This led to a 60% collapse in XPO shares from peak to valley.

Now XPO is starting to ride high again thanks to 3 impressive earnings beats in a row that have analysts expecting a best in class 31% annual earnings growth for the next several years. That is atypical for transportation companies, but tells you why you might want to join the convoy by riding this unique growth stock into 2020 and beyond.

What’s Next?

Again, these were just 4 of the 9 “must own” growth stocks featured in our recently released special report. Get your free copy here.

POWR Trends

If you are serious about finding the next superstar growth stocks that provide extraordinary profits, then you will want to learn more about the POWR Trends service here:

https://report.stocknews.com/powr-trends/

BABA shares closed at $217.00 on Friday, down $-2.77 (-1.26%). Year-to-date, BABA has gained 2.31%, versus a 0.17% 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...

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