2017 is expected to bring the highest gasoline prices since 2014. According to a recent report from Triple A, the average cost for regular, unleaded gas is expected to rise to $2.49 per gallon this year, up from $2.13 in 2016. That’s bad news for corporate America — higher energy prices means rising operating expenses for most of the S&P 500. However, there is one company that is actually in position to benefit. Rising gasoline prices are a profit trigger for this industry leader. That’s why I am expecting shares to close to 2017 at a new all-time high. Union… Read More

2017 is expected to bring the highest gasoline prices since 2014. According to a recent report from Triple A, the average cost for regular, unleaded gas is expected to rise to $2.49 per gallon this year, up from $2.13 in 2016. That’s bad news for corporate America — higher energy prices means rising operating expenses for most of the S&P 500. However, there is one company that is actually in position to benefit. Rising gasoline prices are a profit trigger for this industry leader. That’s why I am expecting shares to close to 2017 at a new all-time high. Union Pacific (NYSE: UNP) owns and operates the largest rail network in the United States. It operates 8,500 locomotives over 32,100 route-miles in 23 states west of Chicago, Illinois and New Orleans, Louisiana. Union Pacific stock has been on a roll. Shares are up 23% in the last 12 months, a 54% premium to the S&P 500. Take a look below. Looking forward, I am expecting another market-beating performance from Union Pacific in 2017. A powerful profit trigger is on the horizon for the entire US rail shipping industry and Union Pacific in particular. When gasoline is cheap, companies… Read More

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors. However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500. #-ad_banner-#Apple, Inc. (Nasdaq: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years. With more than $200 billion in cash,… Read More

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors. However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500. #-ad_banner-#Apple, Inc. (Nasdaq: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years. With more than $200 billion in cash, I expect Apple to continue growing its dividend for years to come. While those stats are impressive, another legendary tech stock offers a better dividend yield and growth. This global leader pays out a 2.4% yield, a 50% premium to Apple’s 1.6% yield. It has grown its dividend by 44% in the last three years, a 63% premium to Apple. And finally, with just over $100 billion in cash on its balance sheet, I am expecting its dividend payment to grow more than 100% in the next five years. The company, Microsoft, (Nasdaq: MSFT) is one of the greatest growth… Read More

For American companies, China is a lot like the Holy Grail. With a population of 1.4 billion, more than three times the size of the United States, making a big splash with Chinese consumers is a quick way to pump up the bottom line. #-ad_banner-#But while China offers great opportunity, winning in this far away land requires great skill and experience. Many top-shelf companies have tried and failed. Transportation heavyweight Uber is one recent example. Uber swept across the planet conquering country after country — until it met China. In 2016, the company basically conceded the Chinese market to local… Read More

For American companies, China is a lot like the Holy Grail. With a population of 1.4 billion, more than three times the size of the United States, making a big splash with Chinese consumers is a quick way to pump up the bottom line. #-ad_banner-#But while China offers great opportunity, winning in this far away land requires great skill and experience. Many top-shelf companies have tried and failed. Transportation heavyweight Uber is one recent example. Uber swept across the planet conquering country after country — until it met China. In 2016, the company basically conceded the Chinese market to local players. Today, I want to share an S&P 500 company and global leader that has cracked the code to succeeding in China. In the next five years, this company will open one new location in China every day – a total of more than 2,500. I expect that to produce record revenue and lift shares to a new all-time high. Starbucks (Nasdaq: SBUX) is one of the most recognized brands in the world. In most major cities across the world, it’s hard to walk a few blocks without seeing the familiar Starbucks logo pasted across a green awning. That global… Read More

Canada had the best performing stock index in the developed world in 2016. The TSX (Toronto Stock Exchange) index delivered a total return of 18.26%. That was a 34% premium to the S&P 500’s total return of 13.59%. #-ad_banner-#This awesome performance was driven by a newly-listed TSX stock. On July 26, Canopy Growth Corp (TSX: WEED) became the first-ever cannabis company to be listed on the TSX Index. The listing generated huge interest from investors eager to cash in on the high-growth medical cannabis industry. Since the listing, shares of Canopy have gained 186%, making it the one of the… Read More

Canada had the best performing stock index in the developed world in 2016. The TSX (Toronto Stock Exchange) index delivered a total return of 18.26%. That was a 34% premium to the S&P 500’s total return of 13.59%. #-ad_banner-#This awesome performance was driven by a newly-listed TSX stock. On July 26, Canopy Growth Corp (TSX: WEED) became the first-ever cannabis company to be listed on the TSX Index. The listing generated huge interest from investors eager to cash in on the high-growth medical cannabis industry. Since the listing, shares of Canopy have gained 186%, making it the one of the best performing stocks on the entire TSX Index. I wrote about CGC on November 1, telling investors to pay attention.  Since my article was published, Canopy is up 81%. If you missed out on those big returns, don’t worry. I see that same pattern unfolding again. Canopy is about to be joined on the TSX Index by another cannabis company. Aphria (TSXV: APH) is the second-largest medical cannabis company in Canada with a market value of $591 million. Shares of Aphria are currently traded on the Toronto Venture Stock Exchange, a subsidiary of the TSX that allows smaller companies to… Read More

I stumbled across a prediction last week that would impress even Mad Money’s Jim Cramer. According to a recent report from Oxfam, an international charitable organization, Bill Gates has a shot at becoming the world’s first trillionaire. Oxfam speculates that if the returns on the tech mogul’s $75 billion fortune in the next 25 years are similar to those in the last 25 years, Gates has a shot at jumping the $1 trillion mark. That got me thinking, if one man has a shot at becoming a trillionaire, certainly one of the S&P 500’s biggest companies has a shot at… Read More

I stumbled across a prediction last week that would impress even Mad Money’s Jim Cramer. According to a recent report from Oxfam, an international charitable organization, Bill Gates has a shot at becoming the world’s first trillionaire. Oxfam speculates that if the returns on the tech mogul’s $75 billion fortune in the next 25 years are similar to those in the last 25 years, Gates has a shot at jumping the $1 trillion mark. That got me thinking, if one man has a shot at becoming a trillionaire, certainly one of the S&P 500’s biggest companies has a shot at becoming the world’s first $1 trillion company? Turns out, a few do.  I see five S&P 500 companies with a shot at breaking the $1 trillion mark in the next five years. — Facebook (Nasdaq: FB) is the smallest company on the list with a market cap of $386 billion. Facebook’s share price would need to hit $345, up 159%. –Amazon (Nasdaq: AMZN) has a market cap of $400 billion. Shares would need to hit $1,980, up 125%. –Microsoft (Nasdaq: MSFT) has a market cap of $498 billion. Shares would need to hit $130, up 100%. –Alphabet (Nasdaq: GOOG) is… Read More

If you want a reason to be optimistic about the S&P 500 look no further than fourth-quarter earnings. After falling for five consecutive quarters, S&P 500 earnings growth is back in the green. It started last quarter. Third-quarter earnings grew 2.1% from the same period last year, a marginal victory on the chart but a big win for morale, breaking a five-quarter losing streak. #-ad_banner-#Fourth-quarter earnings show an improvement from there. As of February 10, 71% of S&P 500 companies had reported fourth-quarter results, according to FactSet Research. From that group, earnings were up 5.0% from… Read More

If you want a reason to be optimistic about the S&P 500 look no further than fourth-quarter earnings. After falling for five consecutive quarters, S&P 500 earnings growth is back in the green. It started last quarter. Third-quarter earnings grew 2.1% from the same period last year, a marginal victory on the chart but a big win for morale, breaking a five-quarter losing streak. #-ad_banner-#Fourth-quarter earnings show an improvement from there. As of February 10, 71% of S&P 500 companies had reported fourth-quarter results, according to FactSet Research. From that group, earnings were up 5.0% from last year. This marks a strong reversal out of the earnings recession that began in 2015. Looking forward, earnings are expected to accelerate throughout 2017. Take a look at the earnings growth projections below. This return to earnings growth is a powerful macro force that I expect to be supportive of the S&P 500 this year. History also tells me that companies delivering the best earnings surprises will do even better and benefit from one of Wall Street’s best-kept secrets. The Post Earnings Announcement Drift (PEAD) is the tendency for a stock’s cumulative abnormal… Read More

Blockbuster drugs are like rocket fuel for pharma stocks. When a hot new drug reaches blockbuster status with $1 billion in annual sales, two good things usually follow: Record revenue and record share prices. This was recently on display with pharma industry leader Gilead (Nasdaq: GILD). In 2012, Gilead released a promising drug called Sovaldi designed to treat Hepatitis C. Sovaldi was a big hit right away, reaching blockbuster status in its first year. That sent shares of Gilead soaring for the next three years. Take a look at the huge gains below. Today, I see this same… Read More

Blockbuster drugs are like rocket fuel for pharma stocks. When a hot new drug reaches blockbuster status with $1 billion in annual sales, two good things usually follow: Record revenue and record share prices. This was recently on display with pharma industry leader Gilead (Nasdaq: GILD). In 2012, Gilead released a promising drug called Sovaldi designed to treat Hepatitis C. Sovaldi was a big hit right away, reaching blockbuster status in its first year. That sent shares of Gilead soaring for the next three years. Take a look at the huge gains below. Today, I see this same pattern unfolding. One of the largest pharma companies in the high-growth cannabis sector is moving closer to the first ever cannabis blockbuster. Its promising new drug is in Phase 3 FDA testing, with a final decision expected by the end of 2017. I wrote about the promise of the medical cannabis industry last November. Here’s what I said at the time: This recent wave of legalization has given birth to the fastest-growing industry in North America. Market research firm Arcview is projecting North American legal cannabis industry sales to grow more than 200% in the next… Read More

Netflix (Nasdaq: NFLX) is one of those stocks that investors either love or hate. It’s hated because of its high valuation, but it’s loved because, despite that high valuation, it has continued to crank out huge returns. In the last five years, shares are up 675%. Check out the huge move in the chart below.   Today, I’m going to explain why Netflix remains a great pick for investors looking for growth. In fact, I am predicting that Netflix will be one of the top performing S&P 500 stocks in 2017. Management Has Made Netflix… Read More

Netflix (Nasdaq: NFLX) is one of those stocks that investors either love or hate. It’s hated because of its high valuation, but it’s loved because, despite that high valuation, it has continued to crank out huge returns. In the last five years, shares are up 675%. Check out the huge move in the chart below.   Today, I’m going to explain why Netflix remains a great pick for investors looking for growth. In fact, I am predicting that Netflix will be one of the top performing S&P 500 stocks in 2017. Management Has Made Netflix The Most Dynamic Company In The S&P 500 Netflix has one of the best management teams in the S&P 500. The company has completely disrupted three separate industries in the last 15 years, an important move in a global economy that’s changing faster than ever. In the late 1990s, Netflix began sending movies to customers through the mail. That sounds ridiculous in the era of smartphones, but back in the day it was a radical idea that eventually led to the bankruptcy of industry heavyweight Blockbuster. When it became apparent streaming was the future of content distribution, Netflix was… Read More

It’s been more than a decade since investors have felt this confident. The Wells Fargo/Gallup U.S. Investor and Retirement Optimism Index hit 96 at the end of the fourth quarter, its highest level since January of 2007. But this wave of confidence shouldn’t come as a surprise — U.S. stocks are on a roll. The S&P 500 delivered a total return of 13% in 2016. That was the eighth consecutive year that the S&P 500 has closed in the green, its second longest annual win streak ever. This impressive win streak has been great for returns and confidence. However, it… Read More

It’s been more than a decade since investors have felt this confident. The Wells Fargo/Gallup U.S. Investor and Retirement Optimism Index hit 96 at the end of the fourth quarter, its highest level since January of 2007. But this wave of confidence shouldn’t come as a surprise — U.S. stocks are on a roll. The S&P 500 delivered a total return of 13% in 2016. That was the eighth consecutive year that the S&P 500 has closed in the green, its second longest annual win streak ever. This impressive win streak has been great for returns and confidence. However, it has also created a problem. The S&P 500 is expensive. Its P/E ratio of 25 is the highest level since the financial crisis in 2009. Take a look below. This high P/E ratio is creating some uncertainty that is lurking below the high investor confidence reading. Not only can it be intimidating for investors to buy stocks trading at an all-time high, but this makes it difficult to find value stocks. #-ad_banner-#A recent study by Bank of America/Merrill Lynch highlights the strong performance history of value stocks. The study tracked the performance of value stocks and growth stocks… Read More

The S&P 500 isn’t just in record territory on the chart. It’s also on one of its best annual winning streaks ever. #-ad_banner-#2016 was the eighth consecutive year that the S&P 500 finished in the green. That is the second-longest annual win streak ever, even including its 1982 to 1989 run. The S&P 500’s best annual winning streak stands at nine years, stretching from 1991 to 1999. 2017 is the year the S&P 500 has a chance to tie this impressive streak. There’s no question U.S. stocks will have their work cut out for them this year. U.S. and global… Read More

The S&P 500 isn’t just in record territory on the chart. It’s also on one of its best annual winning streaks ever. #-ad_banner-#2016 was the eighth consecutive year that the S&P 500 finished in the green. That is the second-longest annual win streak ever, even including its 1982 to 1989 run. The S&P 500’s best annual winning streak stands at nine years, stretching from 1991 to 1999. 2017 is the year the S&P 500 has a chance to tie this impressive streak. There’s no question U.S. stocks will have their work cut out for them this year. U.S. and global economic growth remain stubbornly slow. The S&P 500’s average P/E ratio is at a multi-year high. And higher bond yields are attracting more attention from investors. Despite the usual bevy of challenges, I believe the S&P 500 is up to the challenge. There are three reasons the leading U.S. index is set to close the year at another all-time high. The S&P 500 Will Return To Earnings Growth In 2017 The S&P 500 has been trapped in a nasty earnings recession for most of the last six quarters. That streak was finally broken in the third quarter when earnings… Read More