In the spirit of Thanksgiving, I’d like to share my most important investing tips to prime your portfolio to flourish in the coming months.
November 20, 2023 Nov 21, 2023, 4:30 pm EST November 20, 2023
Editor’s Note: The stock market will be closed for Thanksgiving on Thursday, November 23, and will close at 1 p.m. on Friday, November 24. 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 a little football.
In the spirit of Thanksgiving, I’d like to share my most important investing tips to prime your portfolio to flourish in the coming months. Let’s get right to it.
1. Invest in high margin companies that dominate their business. A company that’s 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-off 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 bigger earnings surprises. This is one reason why I like the oil refiners right now. They have dramatic profit margin expansion and are also profiting from rising natural gas and crude oil prices.
3. Invest in companies with strong forecasted sales and earnings. Do you really want to buy stock in a company that’s expecting its growth to slow? As sales and earnings dwindle, so will Wall Street’s interest in the stock. You want to invest in companies that are expecting to be even bigger and better quarter after quarter. Ultimately, these are the ones that will see an increase in institutional buying pressure. As that buying pressure increases, so will the stock price.
I am a stickler about this in Growth Investor. In this service, Growth Investor stocks are characterized by 3.5 times the sales growth and a whopping 41.8 times the earnings growth of the S&P 500. Furthermore, my Growth Investor stocks trade at only 14.1 times median fiscal 2024 forecasted earnings.
4. Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises. If a stock beats Wall Street’s earnings forecast by a significant amount, share prices can rally dramatically. When I find an unsung stock that has regularly performed better than the “experts” have predicted, I recommend it on the premise that it should top expectations again – and see shares surge when it does.
5. If you’re a dividend investor, focus on companies that are consistently raising their dividends. You want to be sure you’re investing 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? Are they staying the same? Decreasing 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 a “Buy,” a C-rating a “Hold,” a D-rating a “Sell,” and an F-rating is a “Strong Sell.” You’ll know right away whether the stock you’re interested in is one worth buying or one you shouldn’t touch with a ten-foot pole.
If you’re not sure of where to invest, I encourage you to check out Growth Investor. This service is chock-full of fundamentally superior companies across a variety of sectors to ensure that you’re investing in stocks that will “zig” when others “zag” – which will give your portfolio an extra boost when the broader market rallies, as well as protect if it the broader market turns south.
And the time to position your portfolio is now. Fundamentally superior stocks should benefit from new pension funding in the upcoming 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 you do, too.
P.S. The big tech companies recognize the impact that AI is having, with each focusing on and infusing it into their companies as they look ahead to the next quarter and even next year. And just as they see the opportunity on the horizon, I firmly believe that the AI boom we’re witnessing will be the biggest opportunity of the next decade.
To take advantage, all you have to do is apply my “Billion Dollar Tech 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 the majority of AI-related stocks are still small and relatively unknown. The AI boom is just getting started and you don’t want to miss out.
That’s why I created this urgent message to share with you how my time-tested “Billion Dollar Tech Blueprint” can properly position your portfolio for the chance to make the most money possible from the AI Revolution.