After a stunning August, the broader indices aren’t showing any signs of cooling off. In fact, both the S&P 500 and NASDAQ kicked off the month of September with yet another round of all-time highs.
One phenomenon impacting the stock market right now is that big flagships have been hogging the money. I’m, of course, referring to Apple (AAPL) and Tesla (TSLA). Both companies actually had stock splits on Monday and their shares popped on the news. (You can read my Market360 article here to find out what this means for investors.)
Here’s the interesting thing, though: Tesla stumbled 4.7% on Tuesday after announcing a secondary stock offering of $5 billion – and that stumble benefited my fundamentally superior stocks. In fact, Tuesday was one of the best days for our stocks recently. And that’s a very, very positive sign.
I’ll provide more details in the upcoming Breakthrough Stocks September Monthly Issue on Friday, but let me say this now: Money is not leaving the stock market. We’re in the midst of a washing machine market, where money is sloshing around and making its way to my fundamentally superior stocks.
I look for my stocks to outperform in September, especially as third-quarter window dressing kicks off later this month. I should add that third-quarter earnings will also be stunning, as many companies have learned to do business better under the coronavirus restrictions and others are benefitting from the pandemic.
The analyst community has revised their consensus earnings estimates an average of 23.1% in the past month and 39.1% in the past three months. And, as a result, my Breakthrough Stocks are essentially “hitting the gas” and are forecasted to post third-quarter average annual sales growth of 39.7% and average annual earnings growth of 325.1%. So, investors are in for another stunning earnings season.
That said, I do expect to see some shifts in market leadership. Case in point: The Dow took out Exxon Mobil (XOM) and replaced it with Salesforce (CRM). This is a big deal because XOM has been a part of the Dow for 92 years. Zoom Video Communications (ZM), which reported a blowout quarter on Monday, will likely be added to the S&P 500. (I’ll share all the details on ZM’s incredible earnings report tomorrow, so keep an eye on your email!)
But don’t be scared when some of these big flagships change. Even though indexing blows bubbles under the big stocks, as long as they have solid earnings the stocks will be just fine. Now, there are some pricey valuations out there. For example, Tesla trades at 500X earnings. My stocks, on the other hand, trade at about 30X forecasted earnings. When you consider the low interest rates, that’s a very tolerable price-to-earnings ratio.
A Busy Trading Month
Now, in recent weeks, I’ve taken steps across all my services to ensure that my subscribers remain invested in companies that are prospering in the current environment. In Growth Investor, I added six new recommendations and sold two stocks. In Platinum Growth Club, I added five names to the Model Portfolio and sold four, including one for a 98% gain. And, in Accelerated Profits, I recommended two new stocks and locked in a whopping 156% profit in another stock on Wednesday.
In this Friday’s Breakthrough Stocks September Monthly Issue, I will be making a few more changes. Specifically, I will be selling four good stocks to buy four better, more powerful stocks to super-charge the Breakthrough Stocks Buy List. I will also release my new list of Top 5 stocks.
The bottom line: September is going to be a good month for the stock market and my stocks.
If you want to get into position for the future strength, you have about one more week to realign your portfolio before stocks really take off. Come the third week of September, I look for my stocks to firm up even more. So, I recommend that you sign up for my exclusive Platinum Growth Club before that window closes. You’ll receive instant access to all my stocks – I’ve got more than 100 stocks across all my services – my latest buy advice, Model Portfolio, Allocation Tool, podcasts and Live Chat Events.
Click here to join Platinum Growth Club, and you’ll also receive my special report, Urgent Investor Briefing: Louis Navellier’s Crisis Master Plan, yours – absolutely free.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Zoom Video Communications, Inc.