Finding The Right Stocks to BuyWritten by Ophir Gottlieb, 01-04-2015
The market was blood red on Monday after manufacturing data from China and the US showed contraction. While the market may be reeling, one thing we know with absolute certainty is that there will be winners this year, regardless of an aging bull market.
The winners will be those precious few companies that are growing but don't have stock prices that have bubbled over to stretched valuations.
Now that statement was easy enough to write, but finding those precious few gems isn't quite that easy... Or it hasn't been until now.
Let's take every company in every sector with a market cap above $125 billion and rank them by revenue growth.
If we look at the top ten fastest growing mega-caps and then color the bubbles by their stock return, we see two outliers. Yes, 8 out of 10 of the fastest growing companies showed positive returns in 2015, and only two were down. Those two precious gems with growth and value are Apple (AAPL) and Alibaba (BABA).
If you're a CML Pro member it won't surprise you to see these two companies stand out as possible buys. Just yesterday we published our seminal professional research dossier on Apple:
"It's Not When or If. It's Now: Apple is a Screaming Buy".
Here is just one chart from that research dossier; it's Apple's revenue and earnings trends for the last 16-years.
Yep, regardless of the cacophonous noise the banal headlines bring, Apple's revenue is up 28% year over year and its earnings are up a staggering 35%. But the real reason Apple is perhaps the single most compelling investment opportunity right now goes much deeper than a single chart.
The formative research dossier we just published to pro members "It's Not When or If. It's Now: Apple is a Screaming Buy" leads us through the labyrinth of click bait media headlines down to actual knowledge and expertise.
But what about our other gem, Alibaba? Is this really a stock poised to rise? CML Pro members also have a seminal research dossier on Alibaba, and here's one chart from that report that is simply stunning.
Alibaba's business model may be cleverest of them all, and it has created a technology company with an earnings margin that we simply have never seen before in our lifetimes. You see, Alibaba is so much more than just e-commerce.
The company has a cloud computing arm, much like American competitor Amazon.com, and a gigantic mobile pay arm that commands 80% of China's mobile pay market. So we're looking at e-commerce with no inventory, cloud computing and mobile pay -- three extraordinarily high margin businesses, that yield the highest margin tech mega cap ever.
WHY THIS MATTERS
The top analysts, asset managers and hedge fund managers are keenly aware of the data that will move markets like the charts we addressed above. This is how they pick their stocks even if the market goes sideways or down. If we're not using this data, then we're trading against people that simply have more information then we do.
The companies poised to outpace expectations and outperform the market based on this first analysis are Apple and Alibaba. There are more -- and we have them listed as top picks for 2016 using the same type of charts but with expert, institutional quality research on top of it.
Data like this, until now, has been kept away from retail investors, especially in a format that's so easy and so fast to digest. The information asymmetry that exists between pros and non-pros has transferred massive wealth to the top 1%. That information asymmetry is no longer acceptable to us.
This is just one of the fantastic reports CML Pro members get along with all the charting tools, top picks and news alerts. For a (very) limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.