All posts by James Brumley

Bear

10 Stocks to Sell in February

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What a run! The S&P 500 is up 5.5% for January, and higher by a hefty 12.7% since hitting a multimonth low in late December. Both are unusually big gains given the limited amount of time stocks have had to dish them out.

The rally, however, has left some stocks vulnerable to a pullback, while the names left out of the marketwide advance have been exposed as perpetually, habitually weak. Both groups are likely to lose ground — or lose more ground — no matter what lies ahead. But should the broad market falter here, these equities could really lose some ground.

With that as the backdrop, here’s a rundown of 10 stocks to sell as soon as possible. They’re either overextended, in unstoppable downtrends or have a history of poor February performances. In no particular order…

Xilinx (XLNX)

Xilinx (XLNX)

Up 62% since the end of 2017, and up 28% this year alone, the momentum that Xilinx(NASDAQ:XLNX) has exhibited is intoxicating. Unfortunately, it probably wasn’t built to last.

XLNX stock jumped 18% last Thursday in response to an incredible third-quarter report. The chipmaker has made the most of the advent of 5G, and said it expects more of the same kind of growth for the foreseeable future. Investors were still buying in on Friday.

As of Monday, though, the sheer weight of the oversized gain and the gap left behind on Thursday are forcing traders to rethink everything about this name and its forward-looking P/E of 28.5. The good news, past and projected, is now priced in, and then some.

Mondelez International (MDLZ)

Mondelez International (MDLZ)

Mondelez International (NASDAQ:MDLZ) hasn’t earned a spot in a list of stocks to sell because it’s overextended … quite the opposite actually. Although it has moved higher with the market since late December, it has suspiciously lagged behind. A look back over the course of the past couple of years, in fact, reveals Mondelez remains more likely to make lower highs and lower lows than not.

Investors just don’t see the company overcoming its core problems anytime soon.

Besides, February is rarely a good month for MDLZ stock. On average it loses a percentage point for the month ahead, and even in a good year, shares fall short of breaking even in February.

United Continental Holdings (UAL)

United Continental Holdings (UAL)

United Continental Holdings (NASDAQ:UAL) is another name that, for seasonal reasons, struggles during the second month of the year. On average, UAL stock loses more than 6% in February, and nothing about its performance so far in 2019 suggests the airline stock will be a screaming exception to the norm.

Admittedly, it’s not an outlook that jibes with the recent headlines. Just a few days ago, United Continental capped off an outstanding 2018 with a fourth-quarter earnings and revenue beat.

The headwind isn’t about reality though. It’s about perception. And right now, between an ongoing tariff war, a government shutdown and rebounding oil prices, the market is at least a little worried about the current quarter’s likely results.

Caterpillar (CAT)

Caterpillar (CAT)

Heavy machinery maker Caterpillar (NYSE:CAT) is in a similar boat. That is, the impact of the trade war with China isn’t exactly taking a massive toll on the company’s bottom line. But, as long as the company is able to say steep tariffs — coming and going — are presenting problems, investors will assume the worst.

And that’s exactly what Caterpillar did with its fourth-quarter report posted on Monday morning. While stopping short of outright blaming it on the war of tariffs and the subsequent economic slowdown in China, the company did concede weakness in China was the cause for the 4% slump in sales for its Asia Pacific arm.

Though CAT stock fell measurably on the report, in the grand scheme of matters, they weren’t terribly shocked. Caterpillar stock is still just trending lower from its early 2018 peak, and there’s little on the radar that might reverse that trend in the coming month.

Exact Sciences (EXAS)

Exact Sciences (EXAS)

Exact Sciences (NASDAQ:EXAS) has been a champ of late, rallying nearly 60% from its late-December low, and up more than 70% over the course of the past twelve months.

EXAS stock, however, is a name with a history of major ebbs and flows. The big move we’ve seen since Dec. 26 has been made two, and arguably three, times since early 2018, and in each case a huge swath of that gain was given back. It’s unlikely this time will pan out differently. It’s just a habit this cancer diagnostics stock has developed.

Conversely, though due for a sizeable setback soon, the pattern Exact Sciences has developed also says it would be a compelling buy after a tumble.

Alphabet (GOOG, GOOGL)

Alphabet (GOOG, GOOGL)

It’s difficult to bet against the company that essentially owns the gateway to the internet. But, add Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) to your list of stocks to sell before getting too deep into the month of February. On average, GOOGL shares lose a little more than 2% during the second month of the year, and more than half the time it loses ground in February.

It doesn’t appear to be in any major technical trouble right now, but it rarely does in late January.

As was the case with Exact Sciences stock though, any dip from here could be a buying opportunity. GOOGL stock tends to start recovering in March or April to kick off a phenomenal second half of the year.

Illumina (ILMN)

Illumina (ILMN)

Illumina (NASDAQ:ILMN) is another name that’s suspect simply because it has failed to rebound with the rest of the market.

Of course, the doubters had some help coming to their lackluster conclusions. In early January, the company cautioned investors that while its fourth-quarter revenue would be better than expected, 2019’s sales wouldn’t. CEO Francis deSouza was willing to offer 2019 earnings guidance slightly in excess of analysts’ estimates, but for a stock priced at more than 40 times its forward-looking earnings estimates, investors need more assurance the premium they’re paying is justified.

The fiscal outlook might be changed after Tuesday’s post-close report. But, with ILMN stock already below all of its key moving average lines and in a well-framed downtrend, investors are hinting they’re ready to see the glass as half-empty.

Stocks to Sell: Fiserv (FISV)

Fiserv (FISV)

The knee-jerk reaction to the news that Fiserv (NASDAQ:FISV) would be acquiring First Data(NYSE:FDC) was a decidedly bearish one. Shares fell as much as 8.6% on Jan. 18, with many shareholders convinced the company was overpaying for an asset it didn’t exactly need. Things took a dramatic turn beginning that very day though. The intraday loss was cut in half, and as of Tuesday FISV stock was 22% above the low made on Jan. 18. As it turns out, investors love the prospect of the pairing after all.

Still, the big move is overdone. As of Tuesday, would-be profit-takers are testing the waters, and it’s unlikely the stock’s going any higher until investors get a clear idea of what a combined Fiserv and First Data would look like.

Stocks to Sell: AbbVie (ABBV)

AbbVie (ABBV)

There’s nothing inherently wrong with AbbVie (NYSE:ABBV). Though it missed its fourth-quarter revenue and earnings estimates, it’s still a cash cow that’s expected to grow its top and bottom lines this year. It’s dirt cheap too, valued at only 8 times this year’s expected profits.

Nevertheless, like a handful of the other stocks to sell in the coming month, AbbVie is facing an uphill battle of perception. Most drugmaker stocks are losing ground on fears that new drug-pricing legislation could be forthcoming. Meanwhile, ABBV has developed a strong downtrend of its own since peaking a year ago on worries about the fading patent protection of its blockbuster drug Humira.

Keysight Technologies (KEYS)

Keysight Technologies (KEYS)

Finally, Keysight Technologies (NYSE:KEYS) is one of a handful of stocks to sell for February after an incredible January rally that won’t likely last.

Since its late-December low, KEYS stock has gained more than 28%, mostly thanks to the market’s realization of the company’s role in the rollout of 5G wireless connections. Once Verizon Communications (NYSE:VZ) launched an at-home 5G broadband platform in October, the technology became very real for investors. On the hunt for overlooked names in the business, investors found and fell in love with Keysight.

They arguably overshot though. Since it’s now overbought much like it was a couple of different times last year, a reversion to the mean looks likely.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.

Source: Investor Place

Technology

Google Blindsided Amazon on This One, Increasingly Important Front

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Credit has to be given where it’s due … Amazon.com (NASDAQ:AMZN) has largely defined the current era of smart speakers. Although voice-activated assistants have been offered on some smartphones and newer computers, Amazon’s stand alone Echo has raised the bar to an impressively high level. Some Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) investors were expecting Google to take — and keep — that lead.

Nevertheless, current and prospective owners of GOOGL stock have good reason to cheer. Even without knowing exactly how or why its smart speakers are going to be leveraged into sales or profit growth, Alphabet just made a huge dent in Amazon’s dominance within the AI assistant market.

And it happened at a crucial time.

GOOGL Is Catching Up

Technically speaking, Apple (NASDAQ:AAPL) got there first.

Apple unveiled Siri as an app in 2010, and then began integrating it into the iPhone, with the 4s, the following year. But, Siri wasn’t seen as the basis for a standalone device until well after other tech giants began making them. Neither was Cortana, from Microsoft (NASDAQ:MSFT), when it debuted in 2014. At the time, it was only meant to be a means of manipulating an OS’s features with greater ease.

Amazon saw the full potential of an artificial intelligence powered platform early on, however, launching the Alexa-powered Echo in mid-2014. It would be another two years until Google Home would launch, leveraging its Google Voice Search and then Google Now platforms into a competitive smart speaker.

That two-year gap allowed Amazon to develop a wide lead in this fast-growing market. During the third quarter of 2017, sales of the Amazon Echo accounted for nearly 75% of the global smart-speaker market. Google accounted for only a little less than one-fourth of smart-speaker sales.

Much has changed in the meantime. During the third quarter of last year, Amazon was the brand name behind just a tad under 32% of smart-speaker sales, while Google’s piece of the market wasn’t far behind at nearly 30%. Alibaba (NYSE:BABA) and Xiaomi, impressively enough, accounted for a fair amount of the remainder. Neither had an AI-powered digital assistant on the market a year earlier.

Installed User Base Is Still the Key

GOOGL shareholders don’t need to take a full victory lap just yet.

Although Google Home is now selling almost as well as Amazon’s Echo, Amazon’s unchecked early dominance means most of the smart-speakers still in use today are previous versions of the Echo. As of the middle of last year, industry research outfit CIRP believes 70% of smart speakers in use in the United States are powered by Amazon’s Alexa, with Google making up another 24%. Apple, late to the party, serves roughly 6% of the United States’ smart-speaker market.

The data is fuzzier when looking at the global numbers, though undoubtedly Xiaomi and Alibaba lower the relative size of both Amazon’s and Alphabet’s smart-speaker market share.

Nevertheless, to the extent it matters, GOOGL is making inroads at Amazon’s expense.

And that’s the core of the question at hand … to what extent does it matter?

Hardware sales count to be sure, but device sales aren’t apt to be viewed as the endgame for any of these organizations. The goal is to place a device in as many living rooms or bedrooms as possible that can readily connect those consumers with a data-gathering algorithm. That data, of course, will eventually be used to build a profile of said user and ultimately be used as a means of selling that individual or family more goods or services.

Bottom Line for GOOGL Stock

Turning consumer-specific information into revenue is anything but an exact science, to be fair.

Most companies understand that data is valuable, perhaps without even fully understanding how it may be effectively leveraged. Certainly repeat purchases are a flag to Amazon or Google that a consumer uses a given quantity of a consumable. But, it’s very likely that consumers are going to make repeat purchases on their own without any nudging from the company behind their hardware. The real power of information is driving revenue that may not have otherwise been driven. That’s the underlying importance of smart speakers.

To that end, the next philosophical question investors should be asking is which of these two companies can best monetize what is mostly arbitrary data?

It matters. Voicebot.ai expects that by 2022, voice-driven e-commerce will reach an annualized pace of $40 billion. That, however, may still only scratch the surface of what smart-speakers are capable of facilitating.

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Uncategorized

10 Stocks to Buy for a Midterm Rally

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After too many long months of campaign ads and political bickering, the end is in sight. That is, as of Wednesday morning we’ll have chosen our next batch of elected officials, thrilling roughly one half of the country while simultaneously disappointing the other half. So what are the best stocks to buy?

As investors, none of us should really care too much about the outcome despite the fear-mongering from both sides of the table. The third year of any presidency, or the year following midterm elections, tends to be a good one no matter which party is in control and which party loses control of at least one congressional house. Since 1928, the third year of a presidential term averages a gain of just under 14%, making it the most fruitful year of any of the four years of a presidency.

Assuming President Donald Trump’s third year is going to be the typically bullish one regardless of how much representation the Democrats are able to claw back from Republicans, you may want to make sure you’ve got exposure to the equity market sooner than later. Here’s a run-down of ten stocks to buy, as they look particularly well-positioned for strong 2019.

Source: Shutterstock

Alaska Air Group (ALK)

In its long-term industry outlook, aircraft maker Boeing (NYSE:BA) indicated that demand for air travel would grow at an average annualized pace of 4.7% for the next 20 years. Although intended to point to demand for new aircraft purchases, it’s also encouraging for airline investors. After all, it’s the carriers that will be buying these planes to meet that demand.

In most cases, it’s a major name like Delta Air Lines (NYSE:DAL) an investor would opt to own. In this case, though, a smaller player like Alaska Air Group (NYSE:ALK) might be a better choice. And, if the Trump-driven economy continues to grow as it has, Alaska Air is apt to report solid 2019 numbers.

Last quarter’s margins and earnings were both much better than expected, and it looks like the company’s costs-surge are finally starting to abate for good.

Why the Big Rally in PayPal Stock Can Continue

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Paypal (PYPL)

Paypal (NASDAQ:PYPL) isn’t a company that needs an introduction. It’s still the biggest name in online payments, and deals with partners like Visa (NYSE:V) and Mastercard (NYSE:MA) mean it’s also making headway within the all-important point of purchase (POP) market. And, it’s also a direct beneficiary of the convergence of economic growth and an increasingly-digital consumer.

There are a couple of kickers, however, that could make 2019 a huge year for PayPal. One of them is the fact that PayPal has finally started to seriously monetize its peer-to-peer money transfer platform Venmo … something it had been slow to do, wanting to draw people into the ecosystem.

The other bullish argument for the coming year is that the company has earmarked $3 billion per year just to make acquisitions. Each bolt-on bolster’s PayPal’s dominance of the industry.

bank of America stock

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Bank of America (BAC)

This year hasn’t been a particularly good one for Bank of America (NYSE:BAC) shareholders, with BAC stock down roughly 5% year-to-date versus the broad market’s modest gain. Investors are concerned the adverse impact of higher interest rates is more potent than the benefit of higher interest rates.

So far that hasn’t actually been a merited concern. In its third quarter, lending activity was up 1.4%, and margins topped expectations.

To the extent fear of rising rates is the key culprit though, the coming year could be an easier one for shareholders to stomach, making BofA one of several top stocks to buy. Against a backdrop of a rock-solid economy, the market’s only planning on two or three rate hikes for 2019, versus what will almost certainly be four increases this year when all is said and done.

Waste Management (WM)

It often goes unnoticed, just because of the nature of the industry. But, in times of economic growth, the nation’s capacity to create garbage swells. Enter Waste Management (NYSE:WM) … the company that turns garbage into money.

Although revenue is only projected to grow a little less than 3% this year, per-share earnings are expected to swell by 28%. Next year’s projected sales growth of almost 5% should improve the bottom line by a little more than 7%.

Waste Management CEO Jim Fish explained following the release of the company’s third-quarter numbers “those [dumpster rentals] are a really good proxy for how small business is doing, and small business seems to be doing well based on that [last quarter’s rental revenue].

The industrial side of our business is more a proxy for manufacturing, and that’s doing really well too.”

Why Nvidia Stock Could Rally to $400

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Nvidia (NVDA)

One of the early criticisms of the Trump White House has been a lack of a strong government-encouraged plan to advance the development of artificial intelligence technologies.

It’s since been addressed, though the noise of political campaigns has proven distracting. Once the midterms are over though, voters and consumers may be surprised at how close the country’s artificial intelligence players are to reaching something of a critical mass.

It’s a development that bodes well for many hardware and software companies, but arguablyNvidia (NASDAQ:NVDA) is among the best of the best stocks to plug into AI mania.

It’s one of the few outfits that’s built artificial intelligence machines from the ground up to do just that, and last quarter’s 83% growth in its data center business largely reflects the young swell of demand for AI architecture.

The coming year could be a huge one for artificial intelligence now that Washington is also on board with its cultivation.

All Aboard! CSX Stock May Have 30% Upside

Source: Don O’Brien via Flickr

CSX Corp. (CSX)

Regardless of your opinion of him, it’s impossible to deny that Donald Trump has rekindled America’s manufacturing industry. He’s also revived the country’s natural resources industries. Both have, in turn, proven to be a boon for the nation’s transportation industry, which is about as busy as they’ve been in a while hauling newly mined or freshly manufactured goods from one coast to the other.

Rail carrier CSX Corp. (NASDAQ:CSX) has been one of the biggest beneficiaries. Railroads have been busier this year than they’ve been since 2015, and CSX itself is projected to improve its top line by 7.3% this year once the final tally is taken.

The carrier’s real growth, though, is on the bottom line. Last year’s per-share profit of $2.30 is expected to reach $3.82 this year and grow to $4.23 next year, riding the wave of the nation’s revived industrial machine.

Source: Shutterstock

Raytheon (RTN)

Contrary to what it’s looked and felt like of late, there is one thing Democrats and Republicans mostly agree on — the nation needs a strong defense, even if it requires a massive amount of money to muster it.

There are plenty of defense contractors to choose from, but it’s Raytheon (NYSE:RTN) may quietly be one of the top stocks to invest in from the sector. It offers everything from training services to missile systems to cyber warfare to mission control platforms, and more. It’s not only a highly diversified company, it’s a company that’s very much in tune with the nuances of modern-day warfare.

More than anything though, it’s a company on the right side of governmental spending plans. Washington has already budgeted $688.6 billion for military spending in 2019, up 3.5% from 2018’s budget of $664.7 billion. And better still, the government is working with tentative military spending plans of $732.4 billion for 2020.

Makeup brush and beauty supplies

Source: iStockphoto

AptarGroup (ATR)

AptarGroup (NYSE:ATR) isn’t exactly a household name. But, maybe it should be … considering the likelihood that there’s something in every U.S. household wrapped in a package made by Aptar.

Yes, AptarGroup makes a variety of packaging solutions, from pieces of cosmetics containers to condiment bottle flip lids to medical inhalers, and more. It’s another one of the names like Waste Management and CSX. That is, everybody benefits from it, but nobody realizes it. That is, they wouldn’t realize how important Aptar is until the company was gone.

The good news is, Aptar isn’t apt to be going anywhere. This year’s sales are projected to grow nearly 12%, driving more than a 13% improvement in the company’s bottom line. Next year’s expected 8% growth in revenue should bolster the bottom line by 12%.

Source: Shutterstock

FireEye (FEYE)

For years cybersecurity company FireEye (NASDAQ:FEYE) was questioned for spending so heavily on acquisitions, and booking steady GAAP losses as a result.

In retrospect though, there may have been a method to the madness. With so many marketable weapons now at its disposal available in one cloud-based suite called Helix, FireEye has a recurring-revenue machine that’s not only up and running, but running in high gear.

That still doesn’t fully make the case that FireEye is read to end 2018 on a high note and set the stage for a huge 2019. But, this will. Thanks to all the new recurring-revenue customers that have been added of late, last year’s per-share loss of 16 cents is on pace to be a full-year profit of eight cents this year, and grow to earnings of 169 cents per share in 2019. That’s a huge validation of everything the company’s been doing for a long while now.

Dick's stock

Source: Shutterstock

Dicks Sporting Goods (DKS)

Last but not least, add Dicks Sporting Goods (NYSE:DKS) to your list of stocks to buy after the midterm elections are over.

There was a time not too long ago when Dicks Sporting Goods’ future looked bleak. A cyclical wave of sneaker mania and athletic apparel demand peaked a couple of years back, marked by a string of athletic shoe and clothing store closures. Sports Authority’s bankruptcy and Finish Line’s shuttering of 150 locales in 2016 speaks volumes on the matter.

In some ways though, that industry headwind left Dicks Sporting Goods even better positioned to ride the wave of renewed consumerism. With much less competition to contend with, the retailer is expected to start growing its top line again next year.

It’s only projected growth of 2.4%, but the small improvement in sales is also expected to improve the company’s per-share earnings figures at an even faster clip.

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Source: Investor Place

Growth Stocks

8 Stocks to Buy That Are Growing Faster Than Amazon

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Do you think Amazon.com (NASDAQ:AMZN) is a growth machine like no other, one of the best stocks to buy? It’s a beast to be sure, with the most recently reported quarterly top line up a healthy 22% … a pace that’s pretty much been the norm for a while now. Profits are growing nicely as well, as its AWS (Amazon Web Services) division — the company’s fastest-growing segment — produces high-margin revenue.

Amazon.com certainly isn’t the only growth name worth owning, however. There are several other stocks that you should buy with even better sales growth, better earnings growth or both. It’s just a matter of going out there and finding them.

Just to help you move down that path a little faster, here’s a closer look at the best stocks to buy if you’re looking for a little more kick (or a little more value) than Amazon can offer.

Some are familiar, while some aren’t. But all of these stocks to buy merit consideration.

Exelixis (EXEL)

Exelixis, Inc. (NASDAQ:EXEL)

Source: Shutterstock

Biotech stocks are a tricky bunch to bother with, and Exelixis, Inc. (NASDAQ:EXEL) is no exception. It’s arguably worth the trouble, though.

Exelixis has been bearing revenue for several years, but it didn’t fan its revenue flames in earnest until the middle of 2016. That’s when its renal cell carcinoma (kidney cancer) drug Cabometyx was approved.

EXEL is not one of those stocks to buy for traders that can’t stomach volatility — shares tumbled more than 40% since the start of 2018.

Stocks to Buy for Breakneck Growth: Yelp (YELP)

Yelp Inc (YELP) Stock Isn't as Costly as It Looks... But It's Still Pricey

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Calling a spade a spade, online review and rating site/directory Yelp Inc (NYSE:YELP) hasn’t been a stock to buy since early 2014. That’s when it peaked, and even with a 170%-plus rally off of its early 2016 lows, YELP shares are still down roughly 50% from their peak price hit in 2014.

And yet, there it is. Yelp mustered a 30% improvement in last year’s top line and — oh yeah — swung to a profit three quarters ago. That profit has been widening ever since. Analysts are looking for similar growth going forward, projecting next year’s profit per share to ramp up from this year’s 8 cents to 37 cents.

Looks like the once-questionable premise is a viable business model after all.

Stocks to Buy for Breakneck Growth: Tableau Software (DATA)

Tableau Software Inc (NYSE:DATA)

Source: Shutterstock

Just for the record, Tableau Software Inc (NYSE:DATA) isn’t growing quite as quickly as Amazon.com is. DATA still is one of a handful of hot growth stocks to buy, however, because the pace of its bottom-line growth is leaving Amazon’s profit growth in the dust.

The name might ring a bell. Tableau Software has been rumored to be a buyout candidate off and on for some time now, with the most recent big suitor pegged as none other than Salesforce.com, Inc. (NYSE:CRM).

No such deal has been consummated yet, but it’s not tough to see why a potential buyer would be interested in the data-analytics outfit. The next five years look promising for DATA stock — earnings are expected to grow at an annual rate of 85.8%. You could do a lot worse.

Stocks to Buy for Breakneck Growth: JD.com (JD)

jd stock

Source: Daniel Cukier via Flickr

What better alternative to Amazon.com than one of the Chinese copycats of the popular e-commerce giant — JD.Com Inc (ADR) (NASDAQ:JD)? Yes, Alibaba Group Holding Ltd(NYSE:BABA) is the bigger and arguably better-established player on the landscape of China’s e-commerce industry, but it has become a bit unwieldy with its size.

JD.com is smaller, and therefore more nimble, and the company is using that to its advantage. Don’t worry about the lack of income or even the lack of clarity regarding its profitability. Like Amazon.com in its early days, JD is mostly just focused on spreading its footprint, which it’s doing quite well.

The top line is expected to grow at a 27.8% clip for the current quarter, and JD.com has been driving that kind of growth for quite some time now — with 115.4% growth in the bag for next year.

Stocks to Buy for Breakneck Growth: Ctrip.com (CTRP)

Source: Thomas Galvez via Flickr

Not unlike the United States’ online travel agent market, China’s OTA space started out with many players, but has been whittled down to just a few, and just one dominant name that effectively controls the market. That’s Ctrip.Com International Ltd (ADR) (NASDAQ:CTRP), which has either acquired its competition or crushed it.

Either way, the company is taking advantage of its dominance. Its top line is expected to grow at a 16.1% clip for the current year and a 25.1% clip in 2019.

Better yet, the company’s management expects to see revenue growth of between 40% and 45% for the foreseeable future.

The reason CTRP has earned a spot on a list of the best stocks to buy for growth fans is now that the company has plenty of scale, it’s looking for its profit margins to rise to a range of 20% to 30%. And yet, nobody’s really looking.

Stocks to Buy for Breakneck Growth: Sinclair Broadcast Group (SBGI)

Sinclair Broadcast Group Inc (NASDAQ:SBGI)

Source: Shutterstock

This list of top stocks to buy for big growth is packed with some recognizable heavy hitters. Sinclair Broadcast Group Inc (NASDAQ:SBGI) isn’t one of them. That doesn’t make the $14 billion company any less impressive, however, particularly in light of its long string of revenue and earnings growth.

Sinclair Broadcast Group does a little of everything in the world of television. Not only does it create some of its own content for syndication, it owns a handful of stations, and provides services to several others. Its most compelling feature is its ability to assimilate other media players, and when appropriate, leverage its properties into other mediums. For example, it’s the owner of the Tennis Channel, and soon will be the owner of tennis.com and Tennis Magazine.

The proof of the premise is in the numbers. Sinclair is expected to turn in growth of 76.7% this quarter, followed by 222.5% the following quarter. Analysts see 20% upside in the shares, too. The long-term looks a bit bumpy, so you may want to consider swing trading SBGI into that momentum.

Stocks to Buy for Breakneck Growth: Abiomed (ABMD)

ABIOMED, Inc. (NASDAQ:ABMD)

Finally, put Abiomed, Inc. (NASDAQ:ABMD) on your list of hot growth stocks to buy sooner than later. Abiomed is self-described as a “leading provider of medical devices that provide circulatory support.” Its products enable the heart to rest by improving blood flow and/or performing the pumping of the heart.

The description doesn’t quite do the company justice, however. Its Impella is the world’s smallest heart pump, and as of last month, more than 50,000 of them had been implanted in the U.S. market.

Those who know the Abiomed story well, however, will know the Impella is nothing new. What’s new is a couple of approvals for the Impella 2.5 and Impella 5.0, for expanded use in the United States (as of December), and for use in Japan (as of September).

Even with just the approval in Japan, we saw a strong acceleration of revenue. Q4’s top line was up 33%, and it still has yet to reach full penetration with the previously approved uses and markets. The device was only given its first FDA green light in early 2015, which makes it an infant by biomedical device standards.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Pot Stocks

9 Marijuana Stocks to Play the Pot Craze

Source: Shutterstock

Most of the time, most stocks move in the same direction as the broad market … a troubling reality given the market’s recent lack of traction.

There are occasional, story-driven exceptions to that rule of thumb though. Marijuana stocks, fueled by what may well be the biggest legal and medical revolution in years, have already proven they’re blazing their own trail. Stepping into the right pot stocks at the right time can translate to incredible gains, whether or not that outfit is profitable. (And, most aren’t.)

To that end, here’s a rundown of the market’s top pot stocks for the foreseeable future. They may each require different trading treatment. Some are long-term positions, while others are nothing more than hype-driven trades.

In all cases, though, there’s explosive potential on the table — the legal marijuana industry’s story has just gotten that compelling, as more states seek to legalize it while regulators finally start to see its legitimate medical benefits.

In no certain order…

Marijuana Stocks to Buy: Canopy Growth (CGC)

Source: Shutterstock

Marijuana Stocks to Buy: Canopy Growth (CGC)

Of all the marijuana stocks worth a look right now, Canopy Growth (NYSE:CGC) has garnered the most attention of late. Spirits and liquor giant Constellation Brands (NYSE:STZ) upped its stake in the company from 10% to 38%, lending a great deal of credibility to up-and-coming company. All told, Constellation committed almost another $4 billion to Canopy Growth.

The deal-making didn’t stop there though. Canada’s Centric Health announced just a few days later it had entered a multiyear supply and service agreement with Canopy Growth … a deal that makes Canopy a supplier of medical cannabis to the specialty pharmacy.

There’s a reason other outfits are choosing to work with, and invest in, Canopy.

Marijuana Stocks to Buy: Cara Therapeutics (CARA)

Source: Shutterstock

Marijuana Stocks to Buy: Cara Therapeutics (CARA)

At first glance Cara Therapeutics (NASDAQ:CARA) looks like any other pharmaceutical company. It’s got a pipeline largely based on a unique molecular science and serves up regular updates on its R&D.

A closer look at Cara’s pipeline though — and specifically, the science behind it — reveals it is indeed a cannabis play. The drug designated as CR701, in preclinical development, leverages the pain-fighting properties of cannabis as a way of combatting neuropathic pain. Ultimately it may serve as an alternative to highly addictive opioids as a means of treating pain, including chronic and post-operation pains.

It’s certainly not a “pure play.” Cara stock has got five drug trials underway, none of which are cannabis-based. An opioid alternative is a huge opportunity though.

Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH)

Source: ©iStock.com/CapturedNuance

Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH)

GW Pharmaceuticals (NASDAQ:GWPH) is another traditional-looking biopharmaceutical developer. Though it’s also not a pure cannabis play, it’s certainly more focuses on the use of cannabis than Cara Therapeutics is.

GW Pharmaceuticals’ claim to fame is Epidiolex … an epilepsy treatment that was the first cannabidiol (CBD) based drug approved by the FDA for that indication. It could launch any day now.

It won’t be cheap. The annual cost of the treatment will run about $32,500 per year, pointing not just to the effectiveness of the Epidiolex, but also to the rarity of the kinds of epilepsy it’s approved to treat; it’s limited to those patients with Dravet Syndrome and Lennox-Gastaut Syndrome. Regardless, Cowen believes annual sales of the drug could exceed $1 billion by 2022.

The first one is always the hardest win. Now that the FDA has given the green light to its first cannabidiol therapy, other cannabis-based drugs in its pipeline have at least slightly-lower hurdle to clear.

Marijuana Stocks to Buy: Cannabis Sativa (CBDS)

Source: Shutterstock

Marijuana Stocks to Buy: Cannabis Sativa (CBDS)

Don’t let the OTC-listing fool you. Cannabis Sativa (OTCMKTS:CBDS) has a stronger foundation and faces a brighter future than many of its exchange-listed peers and rivals.

Cannabis Sativa, in simplest terms, sells a variety of hemp-based products. Its lineup includes several CBD and THC infused goods, sold through a variety of different venues. Presto Doctor, Wild Earth Naturals, White Rabbit and hi Dispensaries are just some of the names operating under the Cannabis Sativa umbrella.

That being said, don’t misread what Cannabis Sativa is. It’s still booking heavy losses, and would only qualify as a speculative-grade play. Its best shot at long-term viability is a sweeping change in North America’s views on, and laws restricting, the use of marijuana. That change may be underway, but it remains to be seen if it’s moving fast enough.

Marijuana Stocks to Buy: Tilray (TLRY)

Source: Shutterstock

Marijuana Stocks to Buy: Tilray (TLRY)

Tilray (NASDAQ:TLRY) is another one of the names that’s been in the spotlight of late, and for good reason. The company’s fiscal Q2 report posted last month — its first ever quarterly report as a publicly traded company — indicated revenues had nearly doubled year-over-year.

The company is still losing money, to be clear. In fact, the net loss grew from $2.4 million in the second quarter of last year to a loss of $12.8 million last quarter. Investors weren’t deterred though, knowing the company is a work-in-progress.

They’re not wrong to be optimistic about future growth. Tilray was recently chosen by Nova Scotia Liquor Corporation to be a supplier of the adult-use cannabis products it intends to begin selling next month, and just last week the company announced that Prince Edward Island Cannabis Management Corp. had also tapped Tilray for adult-use cannabis products. It’s quickly becoming a go-to supplier.

cbd medicine

Source: Shutterstock

Marijuana Stocks to Buy: Insys Therapeutics (INSY)

Insys Therapeutics (NASDAQ:INSY) is yet another pharmaceutical developer aiming to harness the medical benefits of marijuana.

It has already got two of them on the market. Sybsys is a sublingual spray approved for the treatment of pain in cancer patients, and Syndros is an oral solution that treats people suffering an HIV-related loss of appetites or the nausea and vomiting often resulting from anti-cancer medications. Several more are in the works.

Perhaps just as important is the fact that Insys is attracting its fair share of developmental partners too. The company announced a week ago that it would be expanding its collaboration with UC San Diego’s Center for Medicinal Cannabis Research to explore the use of cannabidiol as a treatment for psychosis.

Marijuana Stocks: Two to Consider, Two to Avoid

Source: MarihuanayMedicina via Flickr

Marijuana Stocks to Buy: 22nd Century Group (XXII)

Most investors familiar with 22nd Century Group (NYSEAMERICAN:XXII) know it as a smoking-cessation play … or at least an outfit that’s capable of growing less-dangerous tobacco.

That’s not all 22nd Century Group is, though. Investors who look closely will see that this company controls several patents related to cannabis plants, which in turn gives the company a hand in the cannabinoid business. Akin to its low-nicotine tobacco plant, it’s been working on the development of a no-THC cannabis plant.

It has not done a great deal with that technology yet. But, with years of work on low-nicotine tobacco about to bear fruit (mandates for low-nicotine tobacco are now being discussed) 22nd Century Group may soon be able to put more focus on its next big evolution.

Marijuana Stocks to Buy: ETFMG Alternative Harvest ETF (MJ)

Source: Shutterstock

Marijuana Stocks to Buy: ETFMG Alternative Harvest ETF (MJ)

Can’t decide which of these marijuana stocks to buy? You don’t have to. Own a piece of all of them via the ETFMG Alternative Harvest ETF (NYSEARCA:MJ). Four of its top five holdingsearned a spot on the list you’re reading right now, collectively comprising about one-third of the fund’s portfolio alone.

Where the ETFMG Alternative Harvest ETF really stands out, however, is its capacity to offer U.S. investors exposure to several Canadian cannabis stocks that may be difficult to purchase outside of that country.

It matters. Although the United States is increasingly open-minded and educated about the use marijuana, Canada has proven far more liberal and progressive. It’s easier for small start-ups to do well there. MJ allows non-Canadians an opportunity invest in that more fostered growth.

Marijuana Stocks to Buy: Cronos Group (CRON)

Source: Shutterstock

Marijuana Stocks to Buy: Cronos Group (CRON)

Last but not least, add Cronos Group (NASDAQ:CRON) to your list of marijuana stocks to mull.

Cronos is a little of everything. Not unlike the ETFMG Alternative Harvest ETF, Cronos Group owns a stake — in some cases a 100% stake — in a handful of cannabis-related organizations. Unlike the ETFMG Alternative Harvest ETF though, Cronos isn’t a mere passive holder. It’s also an incubator of sorts, and will leverage its properties to create new growth opportunities. Case in point: Last month the company inked deals that make it a supplier to several Canadian retail distributors of recreational cannabis. Shortly before that, Cura also tapped Cronos as a supplier.

The company has been on the receiving end of some tough criticisms of late, and is now being targeted by attorneys hoping to build a class-action investors lawsuit. Those claims are often non-starters though. While they may push and pull the stock in the short run, often times news-prompted tumbles turn into opportunities.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.

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Bear

10 Tech Stocks to Get Rid of Today

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So it looks like the technology sector is back on a relatively firm footing. Facebook(NASDAQ:FB) and Netflix (NASDAQ:NFLX) have both taken dramatic tumbles in recent weeks dragging other tech stocks lower with them. But all of these names look stable now. Some are even knocking on the door of record highs again.

It’s a little too soon to give the “all-clear” sign for the entire tech sector though. Corrections are more of a process than an event, and while the next one may not be quite as dramatic, the recent meltdown may have already set the stage for another wave of selling. It’s just a matter of figuring out when it might happen, and what’s likely to trigger it.

But waiting until the next round of weakness starts to take shape may be too late.

With that as the backdrop, here’s a rundown of the market’s top 10 tech stocks to sell sooner than later. They may look healthy enough right now, but they each hold a little too much downside potential to blindly hang onto them.

Tech Stocks to Sell Today: Twilio (TWLO)

Source: Web Summit Via Flickr

After Monday’s close, Twilio (NYSE:TWLO) reported second-quarter numbers that were far better than expected. Revenue of $147.8 million was higher than the $130.4 million the pros were calling for, and operating earnings of 3 cents per share topped estimates for a loss of 6 cents per share. As of this writing, shares were up roughly 19% for the session, moving into record-high territory thanks to the 100% gain TWLO shares dished out over the course of the past twelve months.

This may well be an “as good as it gets” situation, however. Though this may not be the exact top, the already overbought stock is still pushing its valuation limits… even more so now. Once profit-takers come out of the woodwork, a huge chunk of the impressive gain will likely be given back.

Tech Stocks to Sell Today: Advanced Micro Devices (AMD)

Should You Buy Advanced Micro Devices Stock Ahead of Earnings?

Source: Shutterstock

It’s not going to be a popular premise among many traders who’ve recently watched Advanced Micro Devices (NASDAQ:AMD) not just swing back to a profit, but post its best profit in seven years.

There are limits though, and AMD is likely to be near (of not at) its limit.

Working against AMD shares is the fact that the analyst community says it’s only worth $17.54 here, 10% lower than the stock’s current price. Though it’s possible for a stock to hold into a price above the consensus target, it’s pretty rare.

Tech Stocks to Sell Today: Docusign (DOCU)

Source: Shutterstock

Don’t sweat it if you haven’t heard of Docusign (NASDAQ:DOCU); most investors haven’t. There’s a good chance you’ve used Docusign without even realizing it, though. The company makes digital signature hardware, merging paper and e-documents to help usher in the paperless era.

It’s a viable industry, and Docusign is in a league of its own. Up 58% since its April intial-public-offering (IPO) price though, buying DOCU now is like playing with fire. Most IPOs start out good, but that optimism can fade rather quickly and lead into the usual post-IPO pullback that takes shape when the euphoria starts to wear off. Docusign is still waiting for the pullback.

Tech Stocks to Sell Today: Yext (YEXT)

Source: izzatFulkrum via Flickr

Since early February, the price of Yext (NYSE:YEXT) has doubled thanks to a string of good news and a couple of very impressive earnings reports. There does come a time, however, when the gain has moved beyond what the underlying opportunity justifies.

Yext is, in simplest terms, a platform through which companies can manage their online identity. The big news of late has been partnerships with the likes of Yelp (NYSE:YELP) and Amazon.com  (NASDAQ:AMZN) that allow its clients to get more out of Yelp and Amazon’s Alexa-powered Echo.

While Yext is growing its top line like wildfire, it’s still expected to book significant losses at least through next year. And, even if it were profitable, the trailing price/sales ratio of 11.4 suggests it’s going to be overvalued at any plausible degree of profit margins.

Tech Stocks to Sell Today: Twitter (TWTR)

After Its Two-Day 27% Beatdown, TWTR Stock Is a Solid Risk/Reward Play

Source: Shutterstock

Twitter (NYSE:TWTR) shares have already fallen nearly 25% from their late July high, implying traders recognize the vulnerability ahead. But, with TWTR stock still up more than 100% since this time last year, more downside may be in the cards.

A couple of headwinds are finally catching up with Twitter. Chief among them is the obvious one — revenue growth is slowing. And it appears user growth is slowing as well. Capital spending is also expected to roll in higher than previously anticipated this year.

The other (and semi-related) headache? Like most other social networking platforms, Twitter is still struggling to find a fair balance between facilitating the expression of various ideas and keeping a lid on dangerous, inflammatory speech. It’s been far more difficult to manage than most anyone would have guessed.

Tech Stocks to Sell Today: Apple (AAPL)

Source: Shutterstuck

It’s difficult to bet against not just the world’s most recognizable corporate name, but the company that earned its way into being the world’s first $1 trillion company. But, with the 8% advance taking shape since late last month (thanks to a solid quarterly report) Apple (NASDAQ:AAPL) is now up a hefty 32% for the past twelve months, and has gained almost 100% since this point in 2016. As was noted, the bullishness was earned by revenue and earnings growth.

There’s an uncomfortable reality taking shape, however. Like it or not, iPhone sales are slowing. Apple is cultivating other revenue paths, like its Services arm, to offset the impact of the iPhone headwind. It remains to be seen if the market really believes Apple can adequately make the shift from the flagship smartphone being its growth driver to another source of growth.

One may be better off on the sidelines while investors wrestle with the idea.

Tech Stocks to Sell Today: Tesla (TSLA)

tesla stock

Source: Shutterstock

Yes, electric carmaker Tesla (NASDAQ:TSLA) saw its stock roar 16% higher last Thursday in response to an impressive Q2 report. Though the company booked its biggest-ever loss, CEO Elon Musk also now says he’s looking for actual profits in the latter half of 2018 now that the operation has enough scale. In retrospect though, it seems more plausible that the Q2 report was just good enough to spark a serious short-covering rally.

And for the record, more than a handful of analysts doubt Musk will be meaningfully profitable over the course of the next few months. S&P Global Ratings analyst Nishit Madlani commented on the matter:

“Sustained positive free cash flow will depend heavily on improving manufacturing efficiency and maintaining discipline on capital spending.”

Most everyone knows about Musk’s penchant for overpromising and underdelivering. That applies to fiscal matters too.

Furthermore, Musk can’t keep Tesla out of the headlines. As of this writing, TSLA trade has been halted following some strange tweets from Musk which teased the company going private. So it’s probably best to stay away.

Tech Stocks to Sell Today: Square (SQ)

square stock

Source: Via Square

Kudos to Square (NYSE:SQ). The company has created a whole new category of peer-to-peer payment platform for use by small businesses, and most recently worked out a fruitful deal with online auction site eBay (NASDAQ:EBAY). Investors have been rewarded for Square’s forward progress as well. SQ stock is up 184% for the past year alone, driven by compelling headlines.

Calling a spade a spade though, Square has a valuation problem.

It’s profitable, and the bottom line is expected to improve from 45 cents per share this year to 78 cents per share next year. That still translates into a forward-looking P/E of 91.1 though, and at a trailing price/sales ratio of 10.9, it’s going to be nearly impossible for the company to earn its way into palatable valuation anytime soon.

Tech Stocks to Sell Today: Cree (CREE)

Source: Shutterstock

Cree (NASDAQ:CREE), for the unfamiliar, is best known for manufacturing LED lighting solutions. It’s more than just bulbs though. It’s also the underlying technologies that manage industrial scale lighting solutions.

There’s no question that LED lighting is the future, and there’s really no question that Cree has helped usher in the era of this new kind of hyper-efficient technology. To that end, the 113% advance CREE shares have dished out over the course of the past twelve months isn’t a begrudged gain.

Like so many other red hot stocks of late, however, Cree shares are bumping into a valuation headwind that will likely spook the market sooner or later. The stock is priced at 78x next year’s expected earnings, but next year should be a reasonably normal year for Cree, profit-wise.

Tech Stocks to Sell Today: GoPro (GPRO)

GoPro Inc GPRO Karma Drone and Hero 5

Source: GoPro

Last but not least, the 17% jump GoPro (NASDAQ:GPRO) shares made on Friday in response to its Q2 report was thrilling, but suspiciously short-lived.

The prod for Friday’s surge was chatter about a move to profitability come next year (though positive margins would start to emerge later this year). What CEO Nick Woodman didn’t really explain in meaningful detail, however, was exactly how things might turn around in the foreseeable future that haven’t been tried yet. Fanning the bullish flames on Friday may have been a fair amount of short-covering; more than 20% of the float was held as short positions.

If that post-earnings jump was going to last though, we would have seen better follow-through. The stock fell again on Monday and was tepid on Tuesday, having never achieved escape velocity. The bigger trend remains a lethargically bearish one.

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Uncategorized

7 Hot IPOs Yet to Come in 2018 and Beyond

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You can’t buy them … at least not yet. Possibly soon, however.

What’s that? Initial public offerings that are in the works, but not quite yet ready for the market. There’s an interesting list of names investors have been eyeing for a while now, waiting for the day they’d complete their respective IPOs and become publicly traded entities.

Yes, this list includes outfits like the oft-ballyhooed ride-sharing service Uber, though it also includes organizations like the more obscure Acquia, which provides cloud-based business software. Just like their already-trading brethren, there’s a little bit of everything in the next round of public offerings.

That being said, seven of these potential publicly traded stocks are more interesting than the rest. Here’s a preview of those companies, should they actually go through with their suggested IPO plans.

In no particular order…

Should You Buy Uber Shares? It Depends on This...

Source: Shutterstock

Hot IPOs to Come: Uber

Truth be told, a bunch of investors are surprised ride-hailing organization Uber hasn’t gone public yet; the idea has been floating around for a couple of years now.

On the other hand, in light of the company’s public stumbles of late, perhaps Uber knows it would be a “tough sell” to prospective investors. Namely, now-former CEO Travis Kalanick was indirectly implicated in sexual harassment allegations, but was also at the helm at a time when the company hired drivers with criminal records.

For an organization that is not yet profitable (and which may never actually become profitable), asking investors for more funding now might not work very well this soon. Later this year or early next year, however, investors will likely have forgiven and forgotten.

Source: Shutterstock

Hot IPOs to Come: Ancestry.com

You know the company. Ancestry.com not only sells access to a platform that lets people track down their ancestors, but now also offers DNA testing that will help identify where an individual’s ancestors came from, in terms of geography. It has been a hot business for a while now, and the market only continues to grow.

That’s why the company almost went public in the latter half of last year, starting to talk with investment banks that would take care of the underwriting. At the proverbial eleventh hour, though, then-CEO Tim Sullivan stepped down, prompting the postponement of the initial public offering.

There’s some speculation he resigned and the company delayed the IPO because growth was slowing; a corporation generally wants to seek funding while it’s firing on all cylinders. Its former growth pace may well re-materialize before the end of the year.

Hot IPOs to Come: Pinterest

Conceptually speaking, the idea of a website that simply lets you collect digital images of things you’re interested in and pin them to a virtual bulletin board seems silly. There are 175 million regular users of the Pinterest platform, however, that seem to have become addicted. More are added all the time.

What has not quite happened yet is the degree of monetization the organization was hoping for. It set a target of $500 million in revenue for last year, but when it came up short it reportedly prompted the company to postpone the public offering it had planned for 2018.

Those plans may be accelerated, however, if the hiring of the company’s first-ever COO is any indication. Former Square Inc (NYSE:SQ) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) executive Francoise Brougher may inject just the discipline Pinterest needs to get over its fiscal hurdles.

Source: Shutterstock

Hot IPOs to Come: BuzzFeed

BuzzFeed, the news (and sometimes not-so-newsy) website is near the top 200 visited sites in the world, and in the top 100 in the United States. That’s enough to generate roughly $300 million in revenue last year, most of it coming from ad sales. In fact, the company was prepping an IPO last year for this year.

That work was halted, however, when BuzzFeed fell short of its 2017 revenue goal that would have made it an easier sell to investors. The idea didn’t go away though. In fact, the Wall Street Journalreported in November “One person close to BuzzFeed said the performance reflects a more general malaise this year in ad-supported media businesses and isn’t particular to the company.”

In the meantime, note that revenue is actually still growing for the company, even if not as much as hoped.  If the web’s traffic undertow perks up again, BuzzFeed is apt to strike while the proverbial iron is hot.

Xiaomi Mi6

Hot IPOs to Come: Xiaomi

Ironically, though Xiaomi is probably the least familiar name of potential public offerings for U.S. investors to keep on their radar, it’s arguably the most compelling growth prospect of the bunch.

Xiaomi is, among other things, a smartphone maker. Its wares are still a little bit tough to buy in the U.S., though that’s slowly changing.

In the meantime, its phones, cameras, televisions and fitness bands are all become popular in China thanks to their high-quality at a low price. During the fourth quarter of last year, its share of the worldwide smartphone market nearly doubled from 3.6% to 6.9%.

That’s still relatively small compared to the likes of the iPhone from Apple Inc. (NASDAQ:AAPL) and comparable smartphones from Samsung Electronics (OTCMKTS:SSNLF). Growth opportunities are relative though, and this young-ish Chinese company is starting to make waves that could bode well for an IPO many people say is coming this year.

Source: ©iStock.com/bestdesigns

Hot IPOs to Come: 23andMe

Even if you only watch a little bit of television, you know this company as well as you know Ancestry. 23andMe offers genetic testing that lets you identify you’re cultural and geographic heritage.

It’s not just a matter of satisfying curiosity though — 23andMe also offers an analysis of your DNA that will help determine your genetic predisposition to certain health problems. There’s not always something that can be done to completely prevent those diseases and illnesses, but knowing is half the battle.

More important to investors, the whispers that the company is coming to a public-trading exchange near you are circulating again.

That hasn’t always been the case. In September of last year the company raised $200 million in private funding, implying a company value of $1.5 billion. The usual next step, however, is a public offering that ultimately allows initial investors a chance to ‘cash out’ of their stake by creating a market of retail investors.

Hot IPOs to Come: Acquia

Last but not least, add Acquia to your IPO watchlist.

The average consumer/investor won’t be familiar with it. Acquia offers a cloud-based platform that lets companies offload the headache of content management, app hosting and e-commerce.

It’s not a bad business to be in, though it’s a hyper-competitive one. That may be why it has not initiated a public offering yet — the company knows it has to decidedly differentiate itself, and its core website-building platform called Drupal is simply unpopular relative to the web’s use of rival platform WordPress.

A relatively new CEO may be just the shake-up Acquia needs though. Michael Sullivan, who took the helm in November, has the right experience, and looks poised to turn the company into an outfit that’s ready for the IPO that’s been discussed as far back as 2015.

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What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
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Source: Investor Place

Growth Stocks

10 Small-Cap Stocks With Large-Cap Potential

Source: Shutterstock

Small-cap stocks. They fly under the radars of most investors, who struggle to look past behemoths like Apple Inc. (NASDAQ:AAPL) and familiar names like Facebook, Inc. (NASDAQ:FB). Small-cap stocks that are well worth owning are out there though. They’re just usually overlooked because they can’t get enough people’s attention.

Investors willing to look under a few unturned rocks, however, can sometimes find buried treasure.

To that end, here’s a run-down of the top 10 small-cap stocks to consider right now as the broad market continues to toy with a more serious breakdown. Not only are some of these names high-potential possibilities in their own right, quite often smaller names trade out of sync with the overall market and may well offer a refuge should things get ugly for the market’s bigger players. In some cases, the underlying chart is just as compelling as the fundamental argument is.

In no particular order, here are the top 10 small-cap stocks with large-cap potential:


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Small-Cap Stocks With Large-Cap Potential: Sunrun (RUN)

Source: ©iStock.com/Dovapi

While the broad solar-power movement may be bumping into headwinds — ranging from subsidies to cheap natural gas to consumer hesitance — not every name is getting caught up in the industry’s entanglements. Sunrun Inc (NASDAQ:RUN), which not only installs solar panelsbut will also facilitate the financing of them, continues to make forward progress.

Quantifying this growth is this year’s expected revenue growth of 26%, which should be enough to crank per-share profits up from last year’s 86 cents to $1.16 this time around. More of the same is in the cards next year as well.

RUN stock is on a tear too, up 71% for the past twelve months, and knocking on the door of a new multi-year high.

Small-Cap Stocks With Large-Cap Potential: CubeSmart (CUBE)

Source: Shutterstock

Not all small-cap stocks to buy have to be ‘stocks’ in the traditional sense. They can be REITs too, and offer the same kind of upside.

Enter CubeSmart (NYSE:CUBE) — a real estate investment trust that specializes in self-storage facilities. Americans are keeping as much of their junk as ever — if not more — and CubeSmart is more than happy to capitalize on consumers’ unwillingness to let things go. The clincher: A dividend yield of 4.1% is above the market average. And this company has a history of strong and steady increases in its payout.

Yes, the prospect of more rate hikes looms above and that could put downward pressure on CUBE shares. There may be more bark than bite to that possibility though, and most of the downside is already baked into the REIT’s price.

Small-Cap Stocks With Large-Cap Potential: G-III Apparel (GIII)

Source: palesa sibeko Via Flickr

It would be easy to dismiss G-III Apparel Group, Ltd. (NASDAQ:GIII) as just another eventual casualty of the so-called retail apocalypse. But doing so oversimplifies G-III Apparel’s position in this marketplace .

You know the company, even if you don’t think you know the company. G-III is one of the names that makes clothing which eventually carry labels from Calvin Klein, DKNY, Levi’s, Starter, Guess and more. It operates on the less volatile side of the business, supplying clothing for brands that take the bulk of the risk.

One only has to look at GIII’s Q4 report, which boasted a nearly 18% improvement in year-over-year sales at a time when most retailers are thrilled just to match their year-over-year comps.

Small-Cap Stocks With Large-Cap Potential: Simply Good Foods (SMPL)

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If you’ve not heard of Simply Good Foods Co (NASDAQ:SMPL), there’s a good reason — the company didn’t exist until June of last year, when it was formed to capitalize on a branch of Atkins Nutritionals (Editor’s Note: Source is behind a paywall).

Despite a sub-$1 billion market cap that keeps it off a lot of investors’ radars, Simply Good Foods has attracted the attention of several high-profile players. All four of the research outfits that have initiated coverage of the company have called it a “Buy,” and Goldman Sachs Asset Management owns a little more than 7% of the company.

Moreover, the pros collectively say SMPL is worth $16.20, up 27% from its current value.

Small-Cap Stocks With Large-Cap Potential: R1 RCM (RCM)

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Not only is R1 RCM Inc (NASDAQ:RCM) another one of those small-cap stocks that not many investors have  heard of, but the name doesn’t really inspire investors to dig much deeper. Nevertheless, R1 RCM is one of a handful of small-cap stocks to buy sooner than later.

R1 RCM helps healthcare facilities manage their revenue cycle. In other words, the company offers a platform that helps hospitals reduce waste, eliminate mistakes and collect patient fees faster and more effectively.

Baird analyst Matthew Gillmor noted in his recent upgrade of RCM stock: “our prior survey work suggests hospitals are increasingly receptive to outsourcing, especially for RCM,” adding “Additionally, the run-rate exiting 2020 should be even higher (perhaps >$250M), as margins will still be ramping and R1 should benefit from automation initiatives.”

Small-Cap Stocks With Large-Cap Potential: Sally Beauty Holdings (SBH)

Source: Mainstream via Flickr (Modified)

Calling a spade a spade, it will take some guts to step into Sally Beauty Holdings, Inc.(NYSE:SBH) here and now. The stock is down 10% for the past twelve months, never catching the wave that pushed most other stocks higher for the better part of 2017.

Of course, with stagnant revenue and a net income that’s slowly-but-surely shrinking, who can blame the doubters?

The company finally seems to have had a much-needed wake-up call though. A month ago it unveiled credible plans to do some serious cost-cutting that will ultimately fund long-term growth. The ‘growth’ plans themselves are still scant, but it’s a start. Any progress from a company with a stock that’s only trading at 7.0 times its forecasted earnings has a lot of potential.

Small-Cap Stocks With Large-Cap Potential: Diebold Nixdorf (DBD)

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It’s another unfortunately-named organization. And, there’s no sales growth to speak of, and earnings growth is minimal. So why bother looking at Diebold Nixdorf Inc (NYSE:DBD)? Because a new CEO could be just the tweak this ATM and POS technology provider needs become a great company.

That’s what activist investor Alexander Roepers says anyway. He’s thrilled about Gerrard Schmid, who took the helm in February. “The newly combined company is now set up for success,” Roepers explained, adding that he felt DBD might even double in value within the next 18 months.

The analyst community sees better days too, even if they’re not as optimistic as Roepers is. They’re calling for earnings of $1.56 per share next year, up from this year’s outlook of $1.16.

Small-Cap Stocks With Large-Cap Potential: Quidel (QDEL)

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Quidel Corporation (NASDAQ:QDEL) makes a variety of medical diagnostic equipment. Nothing earth-shattering, but all of it marketable.

Don’t let the boring product line fool you though. It won approval for a couple of key products in the last year, and the acquisition of Triage late last year led to a 118% increase in Q4 revenuethat gave the company the scale it needed to clear significant profits.

It’s all enough for Raymond James analyst Nicholas Jansen to tout the stock, upgrading it to a “Strong Buy” and upping his price target to $69. Jansen feels the market underestimates the growth opportunities that will arise as its platforms add to their functionality and cross-selling begins in earnest.

Small-Cap Stocks With Large-Cap Potential: Rayonier Advanced Materials (RYAM)

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In case you’re wondering, yes, Rayonier Advanced Materials Inc (NYSE:RYAM) is an offshoot from Rayonier Inc. (NYSE:RYN). The 2014 spinoff was meant to give the company’s cellulose division its best shot at realizing its full value, and not get in the way of everything else forestry player Rayonier was doing.

Yep, it’s boring. Cellulose and pulp, used to make paper, is anything but cutting edge. There’s a lot to be said for boring products though, and for Rayonier Advanced Materials in particular.

Hedge fund manager Mick McGuire, of Marcato Capital Management, sees the full potential, but adds that to unlock it the “company should concentrate on integrating its recent acquisition, paying down debt and buying back stock.” If it can do that, he feels RYAM shares could be worth as much as $60 within three years. That’s almost three times as much as its current price.

Small-Cap Stocks With Large-Cap Potential: TiVo Corp (TIVO)

tivo stock

Source: Flash.pro via Flickr (modified)

Last but not least, add TiVo Corp (NASDAQ:TIVO) to your list of small-cap stocks to buy for their unexpected growth.

Yes, this is the same TiVo that makes set-top television tuners/boxes used by cable television subscribers. It seems like a bit of an uphill battle, with the cord-cutting movement in full swing, and with streaming boxes like the Apple TV or Roku being the go-to alternative platform that makes cord-cutting possible.

Take a closer look at what’s going on with the cord-cutting movement though. Many consumers are hesitant to give up their cable boxes because in so doing, they also give up their video-recording capabilities and their access to sports and special broadcast events.

TiVo’s solution is a set-top box that allows for the recording of antenna-delivered broadcasts. As more and more consumers realize TiVo can deliver the best of all worlds without an actual cable subscription, it’s positioned to be one of the centerpieces of the cord-cutting movement.

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Source: Investor Place