When I delivered to you The Million Dollar Tech Portfolio back on March 6, I said you have to pick the “right” tech stocks in order to make market-smoking profits for years to come.
And that’s just what you did when you started investing in the stocks and funds in that portfolio.
You know all about Ambarella Inc. (Nasdaq: AMBA) and your gains of nearly 70% – and peak gains of more than 95%.
And you’ve done very well with Repligen Corp. (Nasdaq: RGEN), with which you’ve piled up returns of 61%.
It just proves what I said in that special report: “The road to wealth is paved by tech.”
However, another stock in our portfolio is also stacking up some big gains.
At 25.75% so far, those profits are not as big as they ones we’ve picked up with Ambarella and Repligen… but they’re still crushing the market – the Standard & Poor’s 500 Index – by 2,610.5%.
Today I’ll let you know which investment I’m talking about.
And then I’ll show you why it’s still not too late to cash in… or buy more shares.
After all, with it you can still make gains of 57% or more in less than three years…
The “Stealth” Million Dollar” Stock
I’m talking, of course, about CoreLogic Inc. (NYSE: CLGX).
This Irvine, Calif.-based mid-cap firm collects and analyzes Big Data in just one field – real estate.
In a recent survey of potential homebuyers, the National Association of Realtors (NAR) trade group found that 74% were planning to use the Internet to search for a new house. And according to the media analysts at Borrell Associates, more than half of all real estate advertising is spent online – and real estate is the No. 1 spender in online advertising.
Rental inflation and the tight apartment market is another big factor in the Web’s growing role in real estate.
According to the most recent Reis.com quarterly report on the U.S. apartment market, rents continue to rise – up 0.6% since the third quarter, and 3.5% since a year earlier. Meanwhile, the 2015 National Apartment Research Report, by Marcus & Millichap, says that the apartment vacancy rate is a low 4.7%.
That tight market means landlords can afford to be far more selective when choosing tenants and have every incentive to conduct extensive background checks before renting.
And that’s where CoreLogic comes in. The company operates deep databases on real-estate sectors ranging from single-family homes and apartment buildings to oil-and-gas pipelines and telecommunications networks.
Essentially, CoreLogic sifts through vast amounts of raw unstructured data – that is, Big Data – and then provides actionable analysis to real estate investors, landlords and banks. It does credit checks and criminal record searches, with a laser focus on property damage-related criminal charges.
As such, the company is capitalizing on the nation’s steadily appreciating real estate market. CoreLogic’s own most recent Home Price Index shows that the toxic effects of foreclosed housing have been mostly cooked out of the system – and that U.S. home prices increased 5.3% from November 2013 to November 2014.
That’s the foundation of a solid, well-run business.
But looking forward, I see three catalysts that will continue to pump up CoreLogic’s balance sheet – and its share price.
Big Data Is… Big
According to the forecasters at ReportsnReports.com, the global Big Data market is growing at a blazing 25% compound annual growth rate (CAGR) – and is destined to hit $46 billion by 2018.
As more and more real estate companies, see the value of Big Data – and these numbers tell me they will – they’ll be coming to CoreLogic, the largest data-analytics company in that sector.
Moreover, CoreLogic is a “serial acquirer,” and will grow through adding to its business that way as well. For instance, it’s picked up real estate information companies Marshall & Swift/Boech (MSB) and DataQuick in recent years.
Solid Real Estate Market
The mortgage market has been dipping recently, but it remains solid overall, thanks to historically low interest rates.
Moreover, as I’ll show you in a minute, it keeps improving even in struggling markets.
So, once the mortgage market starts improving even slightly, CoreLogic should benefit greatly – and skyrocket.
Double- and Triple-Digit Improvements
In its most recent quarterly results, revenue came in at $364.8 million, beating analyst estimates and up 11.9% year over year.
Earnings were even better.
CoreLogic reported earnings per share (EPS) of 46 cents, beating analyst estimates by 49% – and its year-ago results by 155.6%.
Despite the soft real estate market, CoreLogic is masterful at picking up and keeping clients and should be able to continue such strong performance.
Today’s opening of $42.21 a share gives CoreLogic a market cap of $3.79 billion.
CoreLogic’s numbers make it one of the sector’s best profit opportunities.
At its recent price level, the stock had a forward price-earnings (P/E) ratio of 20.78, operating margins of 15.1% and an 11.8% return on equity (ROE).
The consensus price target on the stock is $42 – right where it is now.
But I believe the upside on this stock is much, much greater.
Over the last three years, it has grown its earnings per share at a rate of more than 37%.
At that rate, I see the stock’s value rising 20% to $50.40 within the year – and soaring 57.3% in less than three years.
In other words, it’s not to get on this “road to wealth.”
- Strategic Tech Investor: The Million Dollar Tech Portfolio.
- Strategic Tech Investor: How to Get Annual Returns of 90%.
- Strategic Tech Investor: There’s Still a Double Left in This “Million Dollar” Winner.
- Strategic Tech Investor: How You Made 53% in Two Months With This Biotech “Pick and Shovel” Play.
- Strategic Tech Investor: The First Rule for Spotting a High-Tech Winner.