When we spoke last, I’d said that a decisive presidential election was likely, which is what investors were anticipating, too. Stocks rallied strongly on Monday, with the Dow climbing more than 300 points. Well, as you may know, a decisive election outcome ended up not being the case, as folks are still counting ballots in the battleground states of Pennsylvania, Michigan and Wisconsin.
The good news is Wall Street isn’t concerned. Stocks continued to surge through Election Day to today. NASDAQ led the charge higher, ending yesterday up 3.9%. The tech-heavy index is now up an incredible 9% in just four trading days.
The reality is Congress will likely stay in gridlock, with Republicans on track to maintain the Senate. Wall Street likes nothing more than a congressional gridlock.
Hopefully, the presidential election will be decided soon. But in the meantime, the U.S. economy is roaring. We had positive ISM numbers earlier in the week and a strong ADP payroll report yesterday morning. In October, 365,000 private sector jobs were created. Clearly, the V-shaped economy recovery remains underway.
I should also add that we’re officially in the seasonally strong time of year. November and December are often characterized by holiday cheer, as a positive mood spreads from Main Street to Wall Street.
And, of course, earnings are still working. My Buy List stocks (which all Platinum Growth Club subscribers have full access to), on average, are posting 30% sales growth, 60% earnings growth and more than 30% earnings growth.
Repligen Posts Record Results
Just today, one of my Platinum Growth Club Model Portfolio stocks, Repligen Corporation (RGEN), posted record third-quarter revenue and upped its full-year revenue guidance. Company management noted that it experienced “strong revenue and order demand” from both COVID-19 customers and gene therapy clients. Direct product orders surged more than 100% year-over-year, which is “positioning us well for an excellent finish to 2020 and a strong start to 2021.”
For the third quarter, Repligen achieved revenue of $94.1 million and adjusted earnings per share of $0.40, which represented 35% annual revenue growth and 53.8% annual earnings growth. The analyst community was expecting adjusted earnings of $0.28 per share on $86.54 million in revenue, so Repligen crushed earnings estimates by 42.9% and revenue forecasts by 8.7%.
Now, for fiscal year 2020, Repligen expects total revenue between $348 million and $352 million, up from previous guidance for $332 million to $340 million. The company’s COVID-19 programs are anticipated to account for 10% of revenue. Full-year adjusted earnings per share are forecast to be between $1.41 and $1.45, compared to previous guidance for $1.24 to $1.29.
The stock jumped 9% on the heels of the report to a new 52-week high of $203.90 today. Investors following my Platinum Growth Club Model Portfolio would have gotten in way ahead of today’s rally, as I recommended the stock in July 2019. RGEN is now sitting pretty with about a 133% return on my Platinum Growth Club Model Portfolio.
It’s also why I will be adding RGEN to my Top 5 Stocks list for November in tomorrow’s Breakthrough Stocks November Monthly Issue. I’ll explain all the details why tomorrow, but let me say now that I see a lot of upside ahead for this company.
I will also discuss what could trigger an early “January Effect,” as well as why the market rally could persist through May and possibly beyond. In addition, I will be releasing two new buys. My latest commentary, new Top 5 Stocks list and newest recommendations will be available shortly after the market close tomorrow in my Breakthrough Stocks November Monthly Issue.
If you’re interested in my latest recommendations and want to get into position to take advantage of the coming “January effect” with fundamentally superior stocks, now is the time to join me here at Platinum Growth Club. My Model Portfolio and Buy Lists will be ripe for the picking, especially in the wake of their better-than-expected third-quarter earnings. I have more than 100 stocks across all my services to choose from, and as a Platinum Growth Club subscriber, you have full access to each and every one.
Of course, you don’t have to invest in all 100+ stocks. If you’d rather start small, I’ve got you covered there, too. My Platinum Growth club service comes with my exclusive Model Portfolio. I handpick all of my Model Portfolio recommendations from my different services – Growth Investor, Breakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the crème de la crème.
If you’re interested, click here for full details. If you decide to join today, not only will you have instant access to all my recommendations, but you’ll be just in time for my final Platinum Growth Club Live Chat Event of 2020, set to take place next Monday, November 9 at noon. I will be covering my fourth-quarter outlook and the third-quarter earnings season. I will also review this past year, share my predictions for 2021 and give updates on several Platinum Growth Club Model Portfolio stocks. I will also take some time at the end to answer my subscribers’ questions.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns 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:
Repligen Corporation (RGEN)