Many investors struggle because they follow too many stocks… not to mention the “wrong” stocks. Then, once they’ve made their selections, they use emotion, news, or some other subjective guide for when to purchase or sell the stocks. Does that sound familiar?
Here at Invest in the Markets, we use reliable, proven strategies to help us make our selections… and guide our timing to protect our capital and maximize our returns.
Apple seems to be moving beyond the tragic news of Steve Jobs’ recent death. The recent earnings numbers were astounding. Quarter 1 revenue of $46.33 Billion (yes, not Million, but Billion). 37.04 Million iPhones sold (128% growth year over year), 15.43 Million iPad sold (111% growth year over year), 5.2 Million Macs sold (25% growth year over year). If you think this stock is somehow expensive, consider dividing it by 10 and there you have it… a more manageable number to work with in your head.
When I look around at general everyday consumers, I often see three things… and Apple product, a coffee beverage of some kind, and some Lululemon. Somehow, this company has mastered the ability to target a multigenerational cliental. Trading with excellent volume, Lululemon is a great stock to trade when the technicals are right.
On November 8th, 2011, LULU announced the launch of ivivva, an online dance and athletic apparel store for young girls across the United States. Offering sport bras, tanks, leotards, jackets, shorts, etc… which will only help the bottom line of LULU.
I recently highlighted Hansen Natural in a series on the best cold beverage stocks in which I pointed out the strength of the stock price in 2011… but again, similar to other leaders, investors shouldn’t shy away from a rising stock price. Simply be prudent in using the technicals to guide one’s transaction choices.
With nearly 1,100 stores, Chipotle Mexican Grill has significant recognition and reach. In fact, when planning a recent trip, I took a few moments to look up where I might find one… since where I am, they don’t exist yet. I recently wrote a brief article on Chipotle Mexican Grill discussing some of the factors of this company and stock… and decided it would be a healthy choice for any portfolio.
When you have a stream of income with no debt in a growing market environment where more and more consumers and businesses are turning toward the plastic, MasterCard is positioned to grow.
And all those dollars are adding up… with a 28.6% Return on Equity and relatively low debt/equity ratio of 17%, Dollar Tree continues to expand leading many investors to believe, money really does grow on Dollar Trees!
Although Red hat’s Return on Equity is slightly lower than the 15% mark (sitting at 13.6%), it still stands out as a financial leader. With 0% debt and a healthy 25.6% profit margin, this growing company is poised to continue its sales growth patterns. And with many companies setting up and transitioning to the “cloud” concept of data storage and retrieval, Red hat is positioned well to produce consistent profits.
Consumers are impressed with the products and investors are impressed by the results. With an annual Return on Equity of 70.2% and a grass-roots distributor base of 2.1 million members, the potential for growth is remarkable… simply be cautious of a weakening world economy.
With a 28% three year sales growth rate and a 21.4% annual Return on Equity, Intuitive surgical is positioned well to lead the sector for years to come… and help investors too!
TJX boasts a healthy return on equity and a small dividend, giving it room to increase it as profits rise. This apparel and home fashions retailer, the largest of its class in the world, continues to achieve profitable growth year after year despite the varying economic and retail cycles.
*Last updated on March 1, 2012