Archive for January, 2022
I can say from experience that there’s one good thing about being forgetful; I usually get at least five minutes of movement a day just looking for stuff I’ve misplaced.
Luckily, technology is there to aid me when I really need it. We were running late for dinner recently when I couldn’t find my car keys.
Not to worry. I had just the tech device I needed – my Apple AirTag which located my keys and announced it with a loud ring.
Turns out millions of us are turning to what’s known as ultra-wide-band (UWB) wireless technology to find our keys and wallets, even unlock our cars.
And I have found a great way to play the UWB market forecast to grow by 19.6% a year through 2025.
It’s a stock that, since we talked about it last July, has more than quadrupled the S&P 500’s historic run.
Let me show you why I see even more upside going forward…
The Pentagon and the US defense industry recently scored a massive budget victory that has largely flown under the radar.
And what really makes it noteworthy is the fact that, in such a deeply divided nation, such a big increase in defense spending garnered amazing bipartisan support.
The roughly $778 billion defense authorization act cleared the House last month with a lopsided vote in which a stunning 360 members voted yes as opposed to 70 nos.
That’s a 5-to-1 ratio in favor of supporting the nation’s fighting forces and defense contractors.
And in the Senate, the measure was even more lopsided. It passed 88-to-11 for a 7-to-1 margin of victory.
The votes come as we see a growing realization that the US faces rising geopolitical and military threats for an ascendant China and Russia and must.
And I’ve identified a contractor that’s positioned to benefit from the 5% Pentagon budget increase that goes along with this new bill.
The firm more than doubled the market’s returns last year and has more upside ahead…
Last week we got a lot of news. We saw Inflation rise 7% over the past year, the highest since 1982, a million cases a day of Covid, and a very impressive earnings report from Taiwan Semiconductor that shows again why we are focusing on high-quality stocks. We’ve talked about the semiconductor industry a lot recently and given how the business is starting to shift from a secular market to a cyclical one, semis could be in favor for a while. We’re watching Seagate Technology Holdings Plc (STX) and ASML Holding N.V. (ASML) earnings this week to see the follow-through. If they report strong earnings, it could be a good sign for the rest of the industry.
While millions of investors were making New Year’s resolutions like losing weight or exercising more, a Silicon Valley leader was quietly planning for massive earnings growth in 2022.
This leader in data-driven cloud computing is predicting that its sales this year will rise 30% to $3.7 billion – despite Covid headwinds.
And it’s not stopping there. By 2025, demand for computer networking could push its sales up to $5 billion, up another 35% in three years.
Here’s the thing; As aggressive as this plan sounds, it leaves out two other big catalysts that could really propel the stock this year.
The company I have in mind not only raised forecasts after an earnings beat but it also recently split the stock 4-to-1. Not only that, but it announced a $1 billion share buyback.
No wonder the stock is more than tripling the broader market’s returns.
Let me show you why there’s still so much upside ahead…
When we spoke back on November 9, I told you what I’m calling the “autonomous world” is advancing at warp speed.
From self-driving delivery pods to automated factory lines, we’re seeing technology rollout that basically runs itself.
Today, I want to talk to you about another dimension of this new paradigm, autonomous pharmacies.
These automated systems can have a huge impact on an expensive and deadly medical problem.
Some 40% of all hospital admissions each year in the US alone are caused by adverse drug events, nearly all from legally prescribed drugs.
The med-tech firm I have in mind for you is a leader in a sector ResearchandMarkets says will more than double in the next five years to $35.5 billion.
No wonder this firm’s stock gained some 54% over the past year.
Let me show you why it’s poised to double earnings, with stock price likely to follow, in just under three years…
It has been a tough start to the year with the Nasdaq already down 5%, but this drop could be setting us up for another strong year. We know what the Federal Reserve wants to do in regard to tapering quantitative easing and interest rates, and we can make educated decisions based on that knowledge. This means we need to focus on high-quality companies that are growing earnings and doing it in a profitable way. Not much is happening in terms of tech earnings and so we are going to be keeping a close eye on good setups. That means we are not buying anything into weakness right now as many stock valuations are still inflated.
To hear Wall Street tell it, being able to upgrade a car with software over the air is all the reason you need to invest in an automaker, but just because Wall Street says something doesn’t make it true.
Don’t get me wrong. Being able to update hundreds of thousands of vehicles across 14 major car brands is no mean achievement.
And while I applaud the good folks at Stellantis N.V. for targeting roughly $22.5 billion in software sales, I don’t think that’s enough of a hook to invest in the stock – at least not at this point.
Sure, Stellantis hit it out of the park with earnings last quarter, but this statistic can be deceiving. Its long-term profit track record is inconsistent at best.
Instead, there is a Silicon Valley leader that has great car-related technology whose stock has run rings around Stellantis for some time now.
And in the last year, the stock has beaten the broad market by more than seven-fold.
Let me show you why there’s still so much upside ahead…
The market may seem highly uncertain right now, but as I look back at my forecast columns for the past few years, something jumps out at me that’s always the same.
No matter what was in the headlines – bad jobs reports, stock market corrections, slowing economic growth – tech was the place to be.
You don’t have to take my word for it. I have the empirical data to back it all up.
Just look at the returns of the tech-centric Nasdaq over the last five years. It’s up 183%. That beats the S&P 500 over the period by 74%.
I mention that because once again, I’m telling investors that tech will lead the market this year.
Yes, I know that fears of recession and possible new Covid economic restrictions have lots of investors worried.
That’s why I’m focusing this year’s forecast on three tech sectors that will offer investors outsize gains in the year ahead.
Today, I want to show you the three picks you should focus on for 2022…