InvestorPlace – Stock Market News, Stock Tips and Trading Tips
Editor’s Note: The stock market will be closed for Thanksgiving on Thursday, November 23rd, and will close at 1pm on Friday, November 24th. Likewise, the InvestorPlace offices and customer service department will be closed for the holiday this Thursday and Friday. I hope you have a safe and happy Thanksgiving!
Thanksgiving is just two days away, and I don’t know about you, but I’m looking forward to spending the extra time with family and friends, eating turkey and watching some football.
In the spirit of Thanksgiving, I’d like to share my top investment tips to keep your portfolio thriving in the coming months. Let’s get right to it.
1. Invest in high margin companies that dominate their business. A company that is able to expand its operating margins is usually a company that has a dominant position – such as a monopoly – in its industry. This company can raise prices without seeing a drop in sales, and that’s a nice place to be, especially in the current inflationary environment.
2. Along these lines, companies that have margin expansion tend to post larger earnings surprises. This is one reason why I like the oil refiners right now. They have dramatic profit margin expansion and are also benefiting from rising natural gas and oil prices.
3. Invest in companies with strong projected sales and earnings. Do you really want to buy stock in a company that expects its growth to slow? As sales and earnings decline, so will Wall Street’s interest in the stock. You want to invest in companies that expect to be even bigger and better quarter after quarter. Ultimately, these are the ones who will see an increase in institutional buying pressure. As that buying pressure increases, so does the stock price.
I am stubborn about this Growth Investor. In this service, Growth Investor shares are characterized by 3.5 times the sales growth and a whopping 41.8 times earnings growth of the S&P 500. In addition, my Growth Investor shares trade at just 14.1 times average fiscal 2024 forecast earnings.
4. Look for companies that see positive analyst reviews in the past three months, as these typically post earnings surprises. If a stock beats Wall Street’s earnings forecast by a significant amount, stock prices can rise dramatically. When I find an unsung stock that has regularly performed better than the “experts” predicted, I recommend it on the premise that it should beat expectations again – and watch the stock rise when it does.
5. If you are a dividend investor, focus on companies that consistently raise their dividends. You want to make sure you invest in dividend stocks that have the ability to increase their dividend payments. I check this by looking at the company’s last four dividend payments. Are they increasing? Are they decreasing? Do they stay the same? Declining dividend payments are a bad sign (it often means the company isn’t doing well), and you want to avoid those stocks.
Where to Invest First
For all investors, old and new, my Portfolio Grader and Dividend Grader are great tools to keep in your back pocket. You simply plug in a stock you like and it will automatically grade that stock for you. An A rating is a “Strong Buy,” a B rating is a “Buy,” a C rating is a “Hold,” a D rating is a “Sell,” and an F rating is a “Strong Sell.” You’ll know immediately if the stock you’re interested in is worth buying or one you shouldn’t touch with a ten-foot pole.
If you are not sure where to invest, I encourage you to check out Growth Investor. This service is packed with essentially superior companies across different sectors to ensure you invest in stocks that will ‘zig’ when others ‘zag’ – which will give your portfolio an extra boost when the wider market rallies, as well as protection if the wider market turns south. .
And the time to position your portfolio is now. Essentially premium stocks should benefit from new pension funding in the coming weeks and the overall seasonally strong time of year.
My Growth Investor subscribers have the odds in their favor with stocks with phenomenal sales and earnings growth. Join Growth Investor today so do you.
Sincerely,
Louis Navellier
P.S The big tech companies are recognizing the impact that AI is having, each focusing on and infusing it into their companies as they look ahead to the next quarter and even the next year. And just as they see the opportunity on the horizon, I firmly believe that the AI boom we are witnessing will be the biggest opportunity of the next decade.
To benefit, you only have to apply my “Billion Dollar Blueprint” to the AI market and you could turbocharge your investment portfolio in a major way.
And it will work best if you act now while most AI-related stocks are still small and relatively unknown. The AI boom is just beginning and you don’t want to miss out.
That’s why I created this urgent message to share with you how my time has been tested”Billion Dollar Blueprint” can properly position your portfolio for the opportunity to make the most money possible from the AI Revolution.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.