Stocks in 4 Separate Growth Sectors
06/28/2013 10:15 am EST
While markets continue their volatility, there are still many companies that are expanding their reach, yet remain attractive, says Dan Sullivan of The Chartist.
Cabot Oil & Gas (COG)
This independent domestic oil and gas company is pumping out tremendous cash flow and profits.
They own part of the most prolific gas region, the Marcellus, in the US, which is located in the densely populated east coast market. The company owns approximately 200,000 acres in this "sweet spot" natural gas area.
The price of natural gas has declined over the past several years, yet the company's profit margin is close to 100%. This stock has hit an all-time high and has superior relative strength. With the US now producing a greater amount of its own natural gas and oil, we believe this stock will continue to be a winner.
The biotech companies continue to be one of the leading sectors, and shares of CELG have jumped 57% higher year to date. The iShares Nasdaq Biotechnology (IBB) exchange traded fund, which we own in our Mutual Fund/ETF Portfolio has gained 32% this year, doubling the return of the S&P 500.
Celgene develops treatments for cancer and immune inflammatory-related disease worldwide. This new recommendation is going to be more volatile than the others, but we believe we will be rewarded with this top selection.
Hertz Global (HTZ)
The industry's largest publicly traded car rental company announced that it expects earnings this year to increase to between $1.82 to $1.92 per share this year, compared to $1.33 last year.
With the economy rebounding, domestic travel is expected to hit a record high this year. Meanwhile, the number of major car rental companies has dropped to just three, and they control 90% of the market.
The stock recently hit an all-time high, and has a terrific, upward-sloping chart pattern.
Tenet Healthcare (THC)
This company owns and operates hospitals and surgery, imaging, and urgent care centers. Tenet also provides business solutions for close to 600 hospitals. While their earnings were down for the quarter, the company reported that revenue jumped 25%.
Our stock selections are purely technical in nature, and Tenet is a classic case why. The fundamentals at this point do not seem that outstanding, but the price action and relative strength of the stock is terrific.
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