Growth Investing

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags to riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, it’s products like the iPod, iPhone and Macbook that first come to mind when you think of the company’s biggest hits. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price skyrocket more than 9,700% since 2001. … Read More

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags to riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, it’s products like the iPod, iPhone and Macbook that first come to mind when you think of the company’s biggest hits. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price skyrocket more than 9,700% since 2001.  You see, it’s not the company’s revolutionary products that drive its success… The key to understanding the company’s success can be seen in a simple pattern. Once you identify this pattern, the catalyst to future growth for Apple — and the way investors can make money from the company today — will be apparent. After Apple sold the first iPod in October 2001, it was not received well by critics, consumers and investors. Just look at this chart showing Apple’s share price in the 18 months following the iPod launch:… Read More

With each economic report, it seems more certain that the U.S. economy is not teetering on the precipice but rather continuing to grow moderately, with a positive impact on consumer spending and corporate earnings. Not surprisingly, U.S. stock market volatility has decreased and investors are again comfortable taking on a little more risk in the form of smaller growth stocks. Here are two up-and-coming technology stocks to consider now: Proofpoint (Nasdaq: PFPT) is a small but fast-growing cybersecurity provider, a leader in the burgeoning “security as a service” industry, which provides cloud-based protection against hacking, phishing, malware and spam. Proofpoint’s… Read More

With each economic report, it seems more certain that the U.S. economy is not teetering on the precipice but rather continuing to grow moderately, with a positive impact on consumer spending and corporate earnings. Not surprisingly, U.S. stock market volatility has decreased and investors are again comfortable taking on a little more risk in the form of smaller growth stocks. Here are two up-and-coming technology stocks to consider now: Proofpoint (Nasdaq: PFPT) is a small but fast-growing cybersecurity provider, a leader in the burgeoning “security as a service” industry, which provides cloud-based protection against hacking, phishing, malware and spam. Proofpoint’s products protect messages, social media and data for enterprises and consumers. Improved security of sensitive information has been a huge priority of government and corporate organizations for years. It’s increasingly a concern for individuals as well — especially given the proliferation of so-called “ransomware” programs that shut down personal computers until an expensive repair software is purchased (from the scammer that sent the virus in the first place). #-ad_banner-#​Proofpoint’s innovative technologies, which include next-generation email security solutions, use encryption and other secure storage technologies to stymie outside attacks; their services include preventative threat intelligence and quick-response solutions to stop new… Read More

Imagine Stephen King’s “Trucks” meets “Short Circuit”… But hopefully with a lot less blood and a bit more reliability. That’s what’s happening on the M6 motorway, the UK’s longest and busiest motorway, dubbed the “Backbone of Britain,” later this year. The UK Chamber of Commerce estimates that £1.7 million-worth of goods and commerce flow down the M6 every hour. #-ad_banner-#But automated “platoons” of semi trucks could push that figure much higher, while cutting costs significantly. Here’s how it works. The lead truck will be driven by a person, while a convoy of nine other semis will be piloted autonomously, each… Read More

Imagine Stephen King’s “Trucks” meets “Short Circuit”… But hopefully with a lot less blood and a bit more reliability. That’s what’s happening on the M6 motorway, the UK’s longest and busiest motorway, dubbed the “Backbone of Britain,” later this year. The UK Chamber of Commerce estimates that £1.7 million-worth of goods and commerce flow down the M6 every hour. #-ad_banner-#But automated “platoons” of semi trucks could push that figure much higher, while cutting costs significantly. Here’s how it works. The lead truck will be driven by a person, while a convoy of nine other semis will be piloted autonomously, each following the lead truck, drafting in the slipstream, and saving as much as 15% in fuel consumption. Daimler AG (XETRA: DAI) is already testing automated tractor trailers in Germany, and its vehicles will likely be used in the UK program and on U.S. roads. Indeed, its Freightliner Inspiration Truck is the first — and only — truck of its kind to be granted a license for road use in the United States. The Inspiration is chock full of radar, sensors, cameras and other equipment that control speed, distance from other vehicles and lane position. It can sense traffic and road… Read More

You wouldn’t know it from the headlines about obesity, but Americans spend a lot of time and money on fitness — and that spending is rising every year. The aging of America, which eventually could be a drag on the fitness segment as the Baby Boom population gets extremely old, is still a net positive: doctors increasingly insist that seniors stay active, driving demand for athletic shoes and apparel from folks well into their 70s. Spending on athletic and sports clothing rose about 13% from 2009 through 2014, for example — and faster-growing segments, such as women’s activewear, are booming. Read More

You wouldn’t know it from the headlines about obesity, but Americans spend a lot of time and money on fitness — and that spending is rising every year. The aging of America, which eventually could be a drag on the fitness segment as the Baby Boom population gets extremely old, is still a net positive: doctors increasingly insist that seniors stay active, driving demand for athletic shoes and apparel from folks well into their 70s. Spending on athletic and sports clothing rose about 13% from 2009 through 2014, for example — and faster-growing segments, such as women’s activewear, are booming. Here are two ways to play the trend: #-ad_banner-#​Foot Locker (NYSE: FL) is the world’s largest athletic-shoe retailer, with more than 3,400 stores in 23 countries as well as a robust online-retail business. In addition to its flagship brands (Foot Locker, Lady Foot Locker and Kids Foot Locker), Foot Locker operates under the Champs Sports, Footaction, SIX: 02, Runners Point, Sidestep and Eastbay brands. What’s remarkable about Foot Locker is that it’s growing so rapidly, 42 years after its founding. Sales are growing at 5% to 7% annual rate, thanks to annual increases in sales per square foot (a key… Read More

Tax season is in full swing, and the tax filing deadline just a little more than a month away.  Although it’s rather annoying for taxpayers, the beauty of the tax business is that taxes must be filed every year regardless of how the economy is doing. This makes the companies preparing tax returns and selling tax software steady businesses.  #-ad_banner-#Plus, with the U.S. economy strengthening there has been a steady rise in employment, which is increasing demand for tax-related companies.  But the industry has become more aggressive when it comes to attracting customers. The winners will be those that can… Read More

Tax season is in full swing, and the tax filing deadline just a little more than a month away.  Although it’s rather annoying for taxpayers, the beauty of the tax business is that taxes must be filed every year regardless of how the economy is doing. This makes the companies preparing tax returns and selling tax software steady businesses.  #-ad_banner-#Plus, with the U.S. economy strengthening there has been a steady rise in employment, which is increasing demand for tax-related companies.  But the industry has become more aggressive when it comes to attracting customers. The winners will be those that can offer the most value to customers, while keeping things relatively cheap and easy. With that, there are a number of ways to use your portfolio to play tax season this year.  The DIY Play Intuit (Nasdaq: INTU), parent company of TurboTax, is a big bet that people will continue to gravitate toward the do-it-yourself tax prep model.  The latest data from the Internal Revenue Service shows that self-prepared e-filings are up 3% so far in 2016. But TurboTax is seeing even bigger gains, with 9% growth in e-filings from this time last year. This means that TurboTax is stealing… Read More

I’m often amazed at how short-sighted the pundits on Wall Street can be. Present them with nearly a century’s worth of facts and they still refuse to believe what’s right in front of their faces.  #-ad_banner-#Specifically, I’m talking about the power of relative-strength investing. Longtime readers might already be familiar with relative-strength investing. We’ve talked about it before in previous StreetAuthority Daily issues. But for those who need a refresher, allow me to provide a brief recap. If used correctly, this strategy could be the very thing that helps you land your next 100%-plus return.  I find it funny that… Read More

I’m often amazed at how short-sighted the pundits on Wall Street can be. Present them with nearly a century’s worth of facts and they still refuse to believe what’s right in front of their faces.  #-ad_banner-#Specifically, I’m talking about the power of relative-strength investing. Longtime readers might already be familiar with relative-strength investing. We’ve talked about it before in previous StreetAuthority Daily issues. But for those who need a refresher, allow me to provide a brief recap. If used correctly, this strategy could be the very thing that helps you land your next 100%-plus return.  I find it funny that when it comes to purchasing material items, people always seem to go with the latest craze or the hottest new products — yet the same can’t be said for buying and selling stocks. The notion of buying the best-selling new gadget, clothes or automobile seems like common sense to consumers. But here’s the ironic part, if you take this same concept and bring it into the investing world, many on Wall Street will simply scoff at you. Most have long considered the idea of buying the best performing stocks as “thoughtless” or “foolish.”… Read More

Last week, I examined mid-cap stocks and talked about why they’re a happy hunting ground for investors today. To summarize, investors have poured money back into U.S. stocks after the January swoon, as economic indicators are confirming that the U.S. economy remains on a growth path, with positive trends for employment and consumer spending, with low inflation and interest rates. It’s true that the global economic picture looks precarious, so we can’t be complacent about risk. But companies that generate all or most of their revenue in North America should be fine over the next few quarters. #-ad_banner-#In this environment, midsized… Read More

Last week, I examined mid-cap stocks and talked about why they’re a happy hunting ground for investors today. To summarize, investors have poured money back into U.S. stocks after the January swoon, as economic indicators are confirming that the U.S. economy remains on a growth path, with positive trends for employment and consumer spending, with low inflation and interest rates. It’s true that the global economic picture looks precarious, so we can’t be complacent about risk. But companies that generate all or most of their revenue in North America should be fine over the next few quarters. #-ad_banner-#In this environment, midsized companies stand a good chance to outperform expectations. The largest companies are safe havens in time of uncertainty, and many continue to look attractive. But as fears of a U.S. recession abate, the mid-cap sector could outperform — especially when it comes to attractively valued shares of companies catering to consumers. I told you about one such company earlier this week. Here are two more attractive targets in the mid-cap field: Lamar Advertising (Nasdaq: LAMR) specializes in outdoor advertising. If that phrase evokes billboards, you’re right — but Lamar, though more than a century old, is a leader in 21st… Read More

Ask most investors where the next big consumer story will be and the answer is usually China. More than 400 million shoppers went online last year in the world’s second largest economy, more than the entire U.S. population. Besides natural growth in middle-class buying power, the government is doing all it can to transition the economy to a model fueled by consumer spending.  There’s a lot to like about companies that can sell into the Chinese consumer theme — but uncertainty over the country’s economic growth is destroying sentiment even on strong long-term potential. The Global X China Consumer ETF… Read More

Ask most investors where the next big consumer story will be and the answer is usually China. More than 400 million shoppers went online last year in the world’s second largest economy, more than the entire U.S. population. Besides natural growth in middle-class buying power, the government is doing all it can to transition the economy to a model fueled by consumer spending.  There’s a lot to like about companies that can sell into the Chinese consumer theme — but uncertainty over the country’s economic growth is destroying sentiment even on strong long-term potential. The Global X China Consumer ETF (NYSE: CHIQ) is 35% off its 52-week high and just 13% above the all-time low. #-ad_banner-#What if there were a company that would be one of the biggest long-term beneficiaries of the China consumer story but that had hidden exposure to the developed U.S. consumer story to boot? What if that same company was becoming indispensable to its main competitor, a critical part of the supply chain for one of the competitor’s fastest growing segments? The company exists and its shares are on sale. This Pick Gets Huge Support From Amazon And The American Consumer Fulfillment by Amazon (FBA)… Read More

In January I warned StreetAuthority’s premium newsletter subscribers against overreacting. The markets were in a tailspin, officially crossing into correction territory just two weeks into the year.  However, I also said in a follow-up that it would be prudent to begin making a shopping list. #-ad_banner-#Today, we find ourselves in a market that has shown some signs of strength. Oil prices have rallied about 31% since mid-February, propelling the Dow Jones Industrial Average on a 1366-point rally. The S&P 500, meanwhile, is up roughly 8.8% since then. Aside from firming oil prices, there are other developments I’ve… Read More

In January I warned StreetAuthority’s premium newsletter subscribers against overreacting. The markets were in a tailspin, officially crossing into correction territory just two weeks into the year.  However, I also said in a follow-up that it would be prudent to begin making a shopping list. #-ad_banner-#Today, we find ourselves in a market that has shown some signs of strength. Oil prices have rallied about 31% since mid-February, propelling the Dow Jones Industrial Average on a 1366-point rally. The S&P 500, meanwhile, is up roughly 8.8% since then. Aside from firming oil prices, there are other developments I’ve seen that lead me to believe that the rampant selling is beginning to abate. Back on January 15 (the very same day I warned readers to not overreact to the market by panic), my colleague Jimmy Butts noticed that his Maximum Profit system was throwing up some major warning flags. (I’ve covered how Jimmy and his readers use the Maximum Profit system to identify fundamentally-sound stocks with momentum to deliver quick gains. I won’t recap the mechanics of the entire system today. But for more, read this or this.) When he… Read More

The world economy is constantly on the move. Emerging countries struggle to shift into consumer-driven industries, while developed countries continue to push the boundaries of new technology. And if there’s one thing that’s become clear over the past few years, it’s this: Data is big business. The globalization of data accounted for $2.8 trillion of the world’s GDP in 2014, and it’s the result of an astronomical rise in technology. That’s good for a 10.1% rise in global GDP over 10 years.  McKinsey & Co.’s report “Digital Globalization: The New Era Of Global Flows” says that “[data… Read More

The world economy is constantly on the move. Emerging countries struggle to shift into consumer-driven industries, while developed countries continue to push the boundaries of new technology. And if there’s one thing that’s become clear over the past few years, it’s this: Data is big business. The globalization of data accounted for $2.8 trillion of the world’s GDP in 2014, and it’s the result of an astronomical rise in technology. That’s good for a 10.1% rise in global GDP over 10 years.  McKinsey & Co.’s report “Digital Globalization: The New Era Of Global Flows” says that “[data flow] is projected to increase by an additional nine times over the next five years as flows of information, searches, communication, video, transactions, and intracompany traffic continue to surge.” #-ad_banner-#But what does that really mean? Data flows include things like digital transactions, communications, digital information and networks. It’s a vast “economy” that doesn’t necessarily stand on its own, like, say global trade does. Physical goods are easy to understand. Someone wants to buy a widget, so they buy one from a company that makes widgets. What the digital economy does is allow that customer to find that widget on the… Read More