Growth Investing

At the height of his fame, one of history’s top investors, Peter Lynch, regularly marveled at how often one good stock could lead to another in the same industry. And that’s just what happened to me recently while reading up on one of my own holdings, Toyota (NYSE: TM). #-ad_banner-#This other “automobile stock” isn’t a household name like Toyota, but maybe it should be. It’s up about 135% in the past 12 months. And it still has plenty of attractive upside left to offer. One reason I believe this: The company has very robust sales, which have been climbing more… Read More

At the height of his fame, one of history’s top investors, Peter Lynch, regularly marveled at how often one good stock could lead to another in the same industry. And that’s just what happened to me recently while reading up on one of my own holdings, Toyota (NYSE: TM). #-ad_banner-#This other “automobile stock” isn’t a household name like Toyota, but maybe it should be. It’s up about 135% in the past 12 months. And it still has plenty of attractive upside left to offer. One reason I believe this: The company has very robust sales, which have been climbing more than 10% a year, from $2.9 billion in 2009 to $4.3 billion last year. Also, the firm’s earnings per share (EPS) growth has been rallying strongly since the nasty $7.19-a-share loss of 2009, when the recession was really raging. Now that the auto industry is on a roll again, consensus estimates are for EPS to rise 24% a year to $6.63 in 2019 from the current $2.26. However, this “auto stock” could earn $1,000 a share and still never threaten Toyota’s position as the world’s #1 automaker. Indeed, the company hasn’t sold one car in its 35-year existence. That’s because… Read More

In the history of the U.S. economy, a handful of dates stand out as truly game-changing. #-ad_banner-#Examples include when insider trading was banned in 1934, the implementation of Medicare in 1965, the issuing of the first bank credit card in 1946, and the April day in 2001 when the New York Stock Exchange switched to using decimal prices instead of fractions. Each of those events left an indelible mark on the U.S. economy — and earned prescient investors a pretty penny in profits. Another game-changing date is on the horizon, one for which investors can begin preparing now. On Oct. Read More

In the history of the U.S. economy, a handful of dates stand out as truly game-changing. #-ad_banner-#Examples include when insider trading was banned in 1934, the implementation of Medicare in 1965, the issuing of the first bank credit card in 1946, and the April day in 2001 when the New York Stock Exchange switched to using decimal prices instead of fractions. Each of those events left an indelible mark on the U.S. economy — and earned prescient investors a pretty penny in profits. Another game-changing date is on the horizon, one for which investors can begin preparing now. On Oct. 1, 2015, Visa (NYSE: V) is scheduled to reverse liability on fraudulent credit card transactions. Historically, credit card companies have taken responsibility for fraudulent transactions — but on that date, Visa will no longer absorb the losses from fraud stemming from traditional swipe-and-sign credit cards. Visa will instead transfer those losses to the merchants themselves. This is the endgame in the long process of switching U.S. consumers and merchants to the worldwide standard of EMV payment technology. The United States is the last major market to adopt EMV, which is expected to be the accepted standard by October 2015. EMV… Read More

Ten years ago, I don’t know how seriously I would have taken the bitcoin phenomenon. Today, though, I’m taking it very seriously. #-ad_banner-#I’ve learned my lesson the hard way. I used to regularly miss the boat on stocks, while other early adopters got ahead of the curve. In the mid-’90s, I paid very little attention to the developments surrounding the Internet. My parents did the same thing with personal computers in the 1970s. So with bitcoin I’ve been paying attention. And what I’ve learned is that there is real merit to this digital currency. I’m not guaranteeing anything, but I… Read More

Ten years ago, I don’t know how seriously I would have taken the bitcoin phenomenon. Today, though, I’m taking it very seriously. #-ad_banner-#I’ve learned my lesson the hard way. I used to regularly miss the boat on stocks, while other early adopters got ahead of the curve. In the mid-’90s, I paid very little attention to the developments surrounding the Internet. My parents did the same thing with personal computers in the 1970s. So with bitcoin I’ve been paying attention. And what I’ve learned is that there is real merit to this digital currency. I’m not guaranteeing anything, but I do think bitcoin has a fighting chance. And there’s one virtually unknown company that could soar if bitcoin gains acceptance. It could even be known as the “Amazon.com of Bitcoin” in the near future. There are some strong economic forces supporting the acceptance of bitcoin. These are the primary reasons why I predict some of the world’s most successful businesses are going to be very motivated to embrace the digital currency. The first big advantage that bitcoin provides over other electronic transactions is cost. Bitcoin transactions involve no fees. When I first read that, I didn’t think it was a… Read More

For some investors, the best companies are the ones that succeed while “flying under the radar.” #-ad_banner-#That is, they generate attractive profits away from the limelight without the constant scrutiny of highly publicized firms like Apple (Nasdaq: AAPL), Facebook (Nasdaq: FB), Green Mountain Coffee Roasters (Nasdaq: GMCR), and others. While ‘famous’ companies such as these can make big money for shareholders, owning their stocks can be extra stressful. They’re often in the news and everybody has a different opinion about them. It’s enough to get any investor second-guessing the decision to invest in them. I wouldn’t shun these stocks completely,… Read More

For some investors, the best companies are the ones that succeed while “flying under the radar.” #-ad_banner-#That is, they generate attractive profits away from the limelight without the constant scrutiny of highly publicized firms like Apple (Nasdaq: AAPL), Facebook (Nasdaq: FB), Green Mountain Coffee Roasters (Nasdaq: GMCR), and others. While ‘famous’ companies such as these can make big money for shareholders, owning their stocks can be extra stressful. They’re often in the news and everybody has a different opinion about them. It’s enough to get any investor second-guessing the decision to invest in them. I wouldn’t shun these stocks completely, but it certainly isn’t necessary to have a portfolio full of them. There are plenty of under-the-radar stocks doing just as well or better without all the hype. One great example is a fast-growing airline stock you may never even have heard of if you don’t live on the West Coast. The stock’s up 65% in the past 12 months and 155% in the past three years. If you compare the financial performance of this nimble, regionally focused mid-cap to the industry averages, it’s well ahead in virtually every key growth and profitability measure. What’s more, it carries only a… Read More

There’s no denying the role railroads have had in building this great nation of ours — but believe it or not, railroads remain one of the best plays on the broader economy. #-ad_banner-#Of course, Warren Buffett knows this. His Berkshire Hathaway (NYSE: BRK-B) owning Burlington Northern, the second-largest railroad in North America. While we all can’t be Buffetts and buy our own railroad, we can own a stake in of one of the best operators in the industry — and on a pullback, no less. Kansas City Southern (NYSE: KSU) is one of the most underrated rail operators, offering investors… Read More

There’s no denying the role railroads have had in building this great nation of ours — but believe it or not, railroads remain one of the best plays on the broader economy. #-ad_banner-#Of course, Warren Buffett knows this. His Berkshire Hathaway (NYSE: BRK-B) owning Burlington Northern, the second-largest railroad in North America. While we all can’t be Buffetts and buy our own railroad, we can own a stake in of one of the best operators in the industry — and on a pullback, no less. Kansas City Southern (NYSE: KSU) is one of the most underrated rail operators, offering investors a solid entry point after tumbling some 20% this year due to weak earnings and guidance. However, the pullback looks like a great buying opportunity because Kansas City Southern is still one of the best plays in the rail industry given its exposure to cross-border opportunities. Kansas City Southern remains the only railroad operator with operations in both the U.S. and Mexico, where lower labor and transportation costs contribute to the company’s industry-leading margins. At the heart of Kansas City Southern’s disappointing guidance was the fact that new auto plants in Mexico might not begin production as quickly as expected. Read More

For half a decade, investors have been waiting for the economy to start generating faster growth. #-ad_banner-#The fact that GDP growth has failed to live up to the optimism you see at the start of each year explains why analysts often issue bullish new earnings per share (EPS) forecasts, only to ratchet them down over time. We’ve seen that trend play out many times in this current earnings season. Analysts project lofty forward estimates, and then the company dampens those hopes by issuing guidance that is below the consensus. Yet some companies are able to buck that negative cycle, delivering… Read More

For half a decade, investors have been waiting for the economy to start generating faster growth. #-ad_banner-#The fact that GDP growth has failed to live up to the optimism you see at the start of each year explains why analysts often issue bullish new earnings per share (EPS) forecasts, only to ratchet them down over time. We’ve seen that trend play out many times in this current earnings season. Analysts project lofty forward estimates, and then the company dampens those hopes by issuing guidance that is below the consensus. Yet some companies are able to buck that negative cycle, delivering robust quarterly results and making a credible case for strong future profit growth. I screened the 1,500 companies in the S&P 400, 500 and 600 to look for companies that topped recent profit forecasts and also saw their 2014 and 2015 profit outlooks boosted. I then narrowed down the group to include companies that are expected to boost per-share profits by at least 20% in 2015 and again in 2016. Only 20 companies made the cut. Yet simply making the grade isn’t good enough. Some of these stocks also sport very high price-to-earnings (P/E) multiples — based on 2016 profit… Read More

In Friday’s StreetAuthority Daily, we featured an interview with InvestingAnswer’s newest analyst, Nancy Zambell. In the interview, Nancy explained how she recently discovered a small group of companies currently predicting the future. At the time she couldn’t reveal much because she was still finalizing her analysis. But today, her research is finished. And as a reward for being a loyal customer in good standing with one or more of StreetAuthority’s regular publications, later in this essay we’ll be giving away a free stock pick from her newest premium report, “The Seven Companies Predicting the Future.” #-ad_banner-#Before we do though, we… Read More

In Friday’s StreetAuthority Daily, we featured an interview with InvestingAnswer’s newest analyst, Nancy Zambell. In the interview, Nancy explained how she recently discovered a small group of companies currently predicting the future. At the time she couldn’t reveal much because she was still finalizing her analysis. But today, her research is finished. And as a reward for being a loyal customer in good standing with one or more of StreetAuthority’s regular publications, later in this essay we’ll be giving away a free stock pick from her newest premium report, “The Seven Companies Predicting the Future.” #-ad_banner-#Before we do though, we want to first remind you of her amazing discovery… If you saw Friday’s interview, you’ll remember Nancy told you how a handful of companies are currently hoarding thousands of high-powered supercomputers in tightly guarded compounds scattered throughout the United States. Located in remote areas deep in America’s backwoods, these compounds contain a new technology that can predict the outcome of future social and economic events. She called the facilities behind this technology “prediction plants.” Nancy also told you how using these “prediction plants,” companies could predict things like when the next financial crash will be… if a given retail chain… Read More

Consumers thrive on convenience. This has extended to all parts of our lives — especially the car rental business. #-ad_banner-#Sometimes, the ability to rent a car with a quick swipe of the credit card and without having to interact with other humans is a big positive. There is proof that the model works, with Zipcar having paved the way. But it’s not only the convenience that makes this business model appealing. The pricing is better for consumers because there’s less overhead. Hertz Global Holdings (NYSE: HTZ) is the latest company to get into the business of making car renting easier. Read More

Consumers thrive on convenience. This has extended to all parts of our lives — especially the car rental business. #-ad_banner-#Sometimes, the ability to rent a car with a quick swipe of the credit card and without having to interact with other humans is a big positive. There is proof that the model works, with Zipcar having paved the way. But it’s not only the convenience that makes this business model appealing. The pricing is better for consumers because there’s less overhead. Hertz Global Holdings (NYSE: HTZ) is the latest company to get into the business of making car renting easier. Hertz recently launched an off-airport on-demand rental service that allows customers to rent vehicles anytime without any customer agents, bringing self-service to more car rental customers. Hertz should be able to capture more market share as it continues to add more locations with this feature, including in conjunction with its newly acquired Dollar Thrifty brand, and as more customers opt for its convenience. Hertz already owns a quarter of the world’s car rental market by market share. The industry has gotten much smaller over the past few years with the help of consolidation, including Hertz’s acquisition of Dollar Thrifty last… Read More

Today I want to share with you one of the most important investing developments we’ve ever discovered. It concerns a small handful of companies that can predict the future and a way for you to get in on what analysts say is a 5,000% growth trend that could last until 2020. Here’s what’s going on… #-ad_banner-#You may recognize the name Nancy Zambell. She’s a long-time investment industry veteran, having worked at big banks, on Wall Street, and also at a few well-known investment publishing firms. Her track record is one of the best I’ve ever seen. For over 20 years… Read More

Today I want to share with you one of the most important investing developments we’ve ever discovered. It concerns a small handful of companies that can predict the future and a way for you to get in on what analysts say is a 5,000% growth trend that could last until 2020. Here’s what’s going on… #-ad_banner-#You may recognize the name Nancy Zambell. She’s a long-time investment industry veteran, having worked at big banks, on Wall Street, and also at a few well-known investment publishing firms. Her track record is one of the best I’ve ever seen. For over 20 years now, her recommendations have seen average returns around 28%. She’s also helped “regular” folks like you and me score gains of… 66% in 9 months… 175% in 3 months… 169% gains in 6 months… And many, many more. I bring this up because Nancy just joined our sister site, InvestingAnswers.com. She’s the Chief Investment Strategist for a brand new advisory called Five-Star Stocks. And I have to say, she’s starting off with a bang. As you’ll see, she’s come across an opportunity that I can practically guarantee you’ve never seen before. I had a chance to… Read More

Best known by consumers for its cleaning robots, such as the Roomba vacuum cleaner, iRobot Corp. (Nasdaq: IRBT) also manufactures robots for military and civil defense forces that perform bomb disposals and other battlefield operations. #-ad_banner-#Last week, shares shot up more than 11% on a massive spike in volume, making all-time intraday and closing highs. The reason for the rally: an honor from the Patent Board for having one of the top patent portfolios. Out of 50 leading companies in the electronics and instruments industry, iRobot’s patent portfolio was ranked fifth. It was ranked second in the “science strength” category… Read More

Best known by consumers for its cleaning robots, such as the Roomba vacuum cleaner, iRobot Corp. (Nasdaq: IRBT) also manufactures robots for military and civil defense forces that perform bomb disposals and other battlefield operations. #-ad_banner-#Last week, shares shot up more than 11% on a massive spike in volume, making all-time intraday and closing highs. The reason for the rally: an honor from the Patent Board for having one of the top patent portfolios. Out of 50 leading companies in the electronics and instruments industry, iRobot’s patent portfolio was ranked fifth. It was ranked second in the “science strength” category and third in the “industry impact” category. iRobot holds more than 400 worldwide patents, 238 of which are in the United States. Earlier this month, the company reported fourth-quarter results that beat expectations on both the top and bottom line. Revenue rose 25.4% year over year, to $126.3 million, beating analyst estimates of $125.5 million. Earnings of $0.11 per share were up from a loss of $0.21 in the fourth quarter last year and beat the consensus estimate by a penny. In the full 2013 year, the company saw a 20% increase in sales in its home robots segment, but… Read More