As Eric Fry and I gear up for the Escape Velocity Event tomorrow at 7 p.m. Eastern, we wanted to tell you a little bit about the trades we have cooked up to boost your financial “escape velocity.”
I’ll let Eric go first.
Three Sharp-Shooting Trades in Three “Megatrends”
Eric Fry here.
Choosing my “escape velocity” trades wasn’t a difficult task.
Each of them zeroes in on a “megatrend” – a major movement in tech, economics, energy, etc. that will, in turn, cause a major shift of capital into that space.
As Louis and I have mentioned over the last few days, I’m a “macro” guy. I look at the big picture, identify where the money is moving, and peel back each layer of a certain trend until I find the best trades in that space.
So, here is a little bit about each of my upcoming escape velocity trade recommendations…
(Make sure to reserve your spot for Tuesday’s Escape Velocity Event if you haven’t yet already; there, I’ll tell you how you can gain access to these plays.)
My first pick is in the 5G space – a megatrend I’ve favored for years.
The company is a 5G powerhouse that provides a broad range of 5G hardware, solutions, and services. It also provides end-to-end and partial solutions, and it can customize those solutions based on existing infrastructure and network capabilities.
Not to mention, the company’s revenue and earnings prospects are excellent. Thanks both to a growing 5G market and clobbering its competition, the company could easily ramp earnings per share (EPS) by 400% in 2022 – and by even more in the future.
My second pick homes in on green energy and electric vehicles (EVs).
The average EV uses almost half as much copper as the average American house, and EVs aren’t the only “green” products that are “metal hogs.”
- Wind energy uses five to 10 times more copper per unit of electrical energy than does the conventional burning of coal.
- Photovoltaic solar power uses six times more copper per unit of electrical energy.
- A Tesla Model 3 requires 240 pounds of copper, which is nearly four times what a midsized internal combustion vehicle requires.
Therefore, as the renewable energy boom gains momentum, it will produce an echo-boom in demand for key battery metals, which is what my second pick specializes in.
And my third pick is in the long beaten-down travel sector.
It’s a bit perplexing, I know, considering the COVID-19 pandemic, but travel will inevitably come roaring back – and sooner than we think.
Travel is in a bit of a holding pattern right now, experiencing a “darkness before the dawn.” But my pick in this space is a technology leader.
I can’t reveal much about this pick, but know this: This company’s stock did indeed suffer in 2020, weathering a vicious cycle of recovery and destitution (like many travel-related stocks).
But that vicious cycle is becoming a virtuous cycle of rising travel activity… and rising revenues for the company. From Q2 to Q3 2020, the company’s revenues more than tripled.
And this favorable trend will continue to strengthen in 2022 and beyond.
I hope this has you excited… I can’t wait to tell you more about them on Tuesday.
Now over to you, Louis…
Major Tech Plays Ahead
Much like Eric, picking my “escape velocity” trades wasn’t difficult.
I stayed laser-focused on companies that were consistently growing their sales and earnings and posting strong earnings surprises. But here’s what I found interesting: Whenever I ran my “escape velocity” system, it kept flagging tech plays.
This actually makes a great deal of sense. The truth of the matter is we’re smack-dab in an inflationary environment right now. When this happens, the stock market becomes a great hedge against inflation because companies can pass along the price increases that occur as a result of inflation.
Fundamentally superior tech stocks, in particular, tend to become go-to plays for investors because they don’t have to worry as much about the higher prices negatively impacting their earnings. And strong earnings typically equate to higher stock prices over the longer term. As you know, higher prices mean bigger returns – especially for my “escape velocity” trades.
After the running the numbers with my “escape velocity” system, I’ve found six tech plays that are well-positioned to post stunning gains.
I’ll share hints on three of them:
- This is a global company involved in biotech surgery. For its second quarter, the company posted 65.2% year-over-year earnings growth and 34% year-over-year revenue growth. It also posted an earnings and sales surprise.
- This logistics company reported 50% year-over-year revenue growth and 69% year-over-year earnings growth for its second quarter. It also topped analysts’ estimates on the top and bottom lines.
- This well-known platform operator saw 120% year-over-year earnings growth and 60% year-over-year revenue growth. It also crushed analysts’ earnings estimates by 90%.
My other three tech plays also boast superior growth, and I look for them to really start firing on all cylinders once the third-quarter earnings season kicks off in mid-October. That’s really only a few weeks away, so the time to get positioned for big profits is right now.
Eric and I will talk more about our “escape velocity” trades tomorrow. Remember, our Escape Velocity Event will start at 7 p.m. Eastern on October 5 on the dot. If you haven’t already, click here to reserve your spot now.
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: