Here is a look at the volatile performance of some of the largest and most popular semiconductor (chip) stocks so far this year. As you can see based on the green bars, performance has been very strong over the last month, but they are still down a lot this year (red bars). Some investors may view these stocks as still too expensive based on the current valuation (EV/EBITDA), but that is not necessarily the case when you compare these stocks to their strong revenue growth rates (this year and next) and their very healthy net margins.
Skip UTG: Two Better Big-Dividend CEFs
Closed-End Funds (or CEFs) are often an income-investor favorite because they can pay large distribution yields. However, CEFs come in many different shapes and sizes. One very popular CEF, The Reaves Utility Income Fund (UTG), has performed very well this year, but in this article we argue that it’s time to stop adding money to UTG because there are currently better CEF opportunities available. We will review two specific attractive CEFs (that we currently prefer over UTG) in this report.
The Trade Desk: 5 Top Growth Stocks To Crash Again Soon
The Trade Desk (TTD) reported strong results in its latest quarterly release on Tuesday. But despite the latest gains, the shares will likely crash again soon. In particular, high-growth stocks (like The Trade Desk) have rebounded hard since mid-June, but are still down dramatically year-to-date, and Wednesday’s newly released inflation numbers will likely embolden the fed in its fight against inflation. In this report, we review the ugly top-down environment for five top growth stocks that will likely crash again soon, then dig into the details on The Trade Desk in particular and then finally conclude with our strong opinion about investing in The Trade Desk and top growth stocks in general.
Two High-Income CEFs Worth Considering
When investing in closed-end funds (CEFs), we look for a variety of things, including a big distribution payment, an attractively-discounted price (versus NAV), reasonable leverage, and attractive management team, and a strategy that can succeed (especially in current market conditions). The following two CEFs meet all of these requirements, and they are particularly interesting and worth considering for investment right now.
S&P 100: 10 Best, 10 Worst (YTD)
50 Top Growth Stocks, Down Big
It’s been an ugly year for top growth stocks. The fed has been raising rates aggressively to battle sky-high inflation, and that has the side effect of causing high growth stocks to sell off particularly hard. For example, here is a look at 50 high-growth stocks (those with very high expected revenue growth rates for this year and next), sorted by market cap (and as you can see—the year-to-date total return column has a lot or red!).
Attractive High-Growth SaaS Stock: Payroll and Human Resources
We purchased shares of this high-growth small-cap stock in our Disciplined Growth Portfolio in 2015 (when the share price was under $30 and the market cap was around $1.4 billion). It just announced another quarter of strong earnings on Friday, and the shares now trade at around $260 (and the market cap is over $14 billion). What’s more, we continue to like its exceptionally strong growth trajectory going forward (the shares have a lot more upside ahead). This report reviews the business and 10 things we like about it going forward.
A Warning: As Markets Continue to Rally
70 Yields Over 7% (with Big YTD Price Declines)
With the market posting strong gains over the last month (particularly high growth stocks) it can make sense to focus on areas receiving less attention. And in this report, that includes big-dividend investment opportunities that are still down big year-to-date. More specifically, we share data on 70 investments that currently yield over 7% and have experienced significant share price declines so far this year. The list includes REITs, BDCs, CEFs and more.
Attractive 11.6% and 10.1% Yields: Try Small Cap CEFs Now
Unlike the S&P 500, the Blue Harbinger Income Equity Portfolio has posted a positive return so far this year. There are a lot of factors that have contributed to the outperformance, and one has been the noticeable omission of small cap stocks. However, there is growing evidence to believe now is an attractive time to add an allocation to small cap stocks within your portfolio. In this report, we review two very attractive ways to do that (particularly if you are an income-focused investor) with two highly-compelling closed-end funds (CEFs) that offer big double-digit yields. We review all the details in this report.
Medical Properties Trust: 50 Big-Dividend REITs, Down Big
With interest rates higher this year, big-dividend REITs have been hit hard, particularly those with higher levels of debt. And one name that just sold off even harder (following its earnings announcement on Wednesday) is Medical Properties Trust (MPW). MPW provides capital to hospitals, has a 7.2% dividend yield and has increased its dividend every year for the last nine years in a row. In this report, we compare MPW to 50 other big-dividend REITs (in terms of a variety of financial metrics) and then dig into its business model, current valuation, dividend safety, the four big risk factors it currently faces and finally conclude with our strong opinion on investing.
The Economic Bears vs The Stock Market Bulls: We have chosen our side!
This month’s Blue Harbinger Thinker is now available. In this report, we share our thoughts on where the market goes from here, performance and holdings updates for our two portfolios (Income Equity and Disciplined Growth), some thoughts on attractive individual stock ideas, and we conclude with our strong opinion on which side you should choose: The Economic Bears or The Stock Market Bulls.
August Portfolio Updates Available
S&P 500: Reasons to Be Afraid
Stocks have posted strong gains over the last 3-weeks, but a lot of investors remain fearful that this year’s painful downtrend will resume. After all, inflation is sky high (9.1% CPI), the fed is expected to hike rates another 50pbs (possibly 75bps) at its next meeting (which will slow economic growth), and the 10-year treasury yield (2.68%) has dipped (over the last 3-weeks) and remains inverted versus the 2.85% 2-year treasury yield (a strong recession indicator).
3 Top Big-Dividend Preferred Stocks Worth Considering
Preferred shares can offer big-yields and less risk than common shares. And given the current market environment, some preferreds are offering particularly compelling opportunities as prices are down, yields are up and underlying businesses remain relatively healthy. This report gives a little more information on preferred shares, and then concludes with three examples that are particularly compelling investments for income-focused investors right now.
Market Update: A Lot Has Changed Recently
As you can see in the following chart, the market (as represented by the Nasdaq 100 (QQQ)) has been terrible this year, but things have perked up in recent weeks. This update/report reviews the causes of this year’s declines and the data points supporting continued recent market perkiness. We conclude with our strong opinion on how you may want to position your investment portfolio going forward.
Top Sales Growth Stocks (Enphase Edition)
Here is a look at some of the top revenue growth stocks (this year and next). One thing that may standout is Enphase Energy (ENPH). Enphase is the only name that passed this high-growth screen AND has a positive ytd return (red bars). It also has positive net margins (indigo bars) and an impressive business. Enphase announced very strong earnings yesterday that exceeded expectations (and the company raised guidance). Shares are up more than 15% today so far.
If I Could Own Just One Stock
As a long-term investor, I believe in owning a prudently-diversified portfolio of many stocks. However, if I could own just one stock, I’d want it to be a leader in the important categories of revenue growth, dividend income and financial strength (including profitability, a strong balance sheet and an attractive valuation). Following its new quarterly earnings release this week, this report reviews Microsoft’s business, its strengths (in the categories listed above), the risk factors it currently faces and then concludes with my strong opinion on whether Microsoft would be “the one.”
AGNC: Book Value Down, 12.1% Yield
Mortgage REIT AGNC Investment Corp (AGNC) announced quarterly earnings on Monday, and not surprisingly—book value took a hit (amongst all the interest rate and agency-spread movements). The yield has now mathematically climbed to over 12%, and some investors are left wondering if the shares are worth owning or if the risks are too great. In this report, we review the business, the outlook, valuation and risks, and then conclude with our opinion on investing.