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Growth vs. Stock Price: What Are You Investing For?

Can you guess what is pictured in this photo?

I’ve zoomed in extra close so you may see the fine details:

zoomed in mystery photo

Probably not.

In this case, zooming in on an object doesn’t help decipher what is.

On the other hand, as my colleague Ian Dyer often says, “Zooming Out,” especially where our America 2.0 stocks are concerned, is essential to see the BIG picture and the great potential for future stock growth.

Back to the mystery photo.

Zooming out, you can see, this is my neighborhood’s hawk that perches on my roof daily in search of prey.

hawk on roof

If you’re afraid for Alex (my dog) now … don’t worry.

He has a special protective vest that will help keep him safe from hawks and coyotes (yes, my neighborhood has them too) when venturing outside under my very watchful eye.

Alex dog in jacket

Now, back to zooming out on this stressful market…

Paul and Ian addressed the latest bout of market volatility in Friday’s IanCast.

In it, they zoom out on three America 2.0, Fourth Industrial Revolution companies that have developed and implemented technology that is improving lives for the better:

  1. DocuSign, Inc.
  2. Teladoc Health, Inc.
  3. Zoom Video Communications.

The prices for this stock trio are down around 50% since the start of the fourth quarter (Q4) of 2021.

But here’s the thing…

Zooming out by looking at their company quarterly sales revenue growth forecasts offers a different and more bullish viewpoint.

And stock investors who sell these America 2.0 (life-improving) stocks may soon be in for a rude awakening as earnings season kicks into high gear.

Invest for Growth & Don’t Let Fear Make You Sell Too Soon

America 2.0 companies are in our daily lives … making things easier, faster and more efficient.

With DocuSign, we no longer need to get in our cars and drive to a location to sign important documents.

Now these papers can be signed electronically right in the palm of our hands via our smartphones.

I know this firsthand because I just used DocuSign’s technology yesterday to sign documents. It’s very convenient and will likely only get better.

Teladoc saves us a trip to the doctor’s office for health issues that just need a prescription to cure.

While Zoom helps us participate in group meetings from the comfort of our homes or when we’re on the go. We use it to record your Bold Profits Daily videos!

As you can see, the technology = life-changing.

Now for the growth which may not seem as obvious based on the daily stock price declines.

Per Bloomberg’s quarterly sale revenue forecasts, DocuSign is on track to potentially hit $671.7 million in the third quarter (Q3) 2023.

That’s about a 23% increase over Q3 2022 quarterly revenues reported last month:

DOCU quarterly revenue estimates

Teladoc Health is on track to possibly reach $658.9 million in Q3 2023 — a 26% increase over Q3 2021 quarterly revenues reported in October:

TDOC quarterly revenue estimates

And Zoom Video Communications is well positioned to potentially hit $1.2 billion in Q3 2023, a 16% increase over Q3 2022 quarterly revenues reported in November:

ZM quarterly revenue estimates

These are very healthy sales revenue forecasts.

Future revenue growth for these stocks looks steady at a high level.

Investors shorting or selling shares in these companies anticipate low-revenue growth now and into the future.

But as Paul predicted in the IanCast, bearish investors will be surprised once these America 2.0 stocks report positive long-term quarterly sale revenue growth forecasts.

And looking ahead, I would not recommend being a bear for this earnings season.

 

America 2.0 Earnings Season Preview

Zooming out further — as earnings season begins — I thought I’d share an America 2.0 preview.

These screenshots show how earnings are shaping up for companies who’ve reported across various sectors in the Nasdaq Composite Index.

So far, there’s only been a handful — 178 companies reporting out of 3,139.

But even in this early stage, the trend is positive.

First off, the Nasdaq is a good proxy index for stocks in our America 2.0 portfolios.

Starting with sales growth by sector.

Eight of the 10 sectors in the Nasdaq are reporting positive sales growth in Q4 2021 over the same period a year prior:

Eight of the 10 sectors in the Nasdaq are reporting positive sales growth in Q4 2021

Technology sector stocks sale growth is up 13.88% while health care and industrials are up 16.46% and 59.97%, respectively.

Meanwhile, seven of nine Nasdaq sectors are showing positive sales surprises so far this earnings season.

Companies reporting positive sales surprises are in sectors like technology, health care, energy and financials.

technology, health care, energy and financials reporting positive financials

This is a promising trend.

We’ll see how the rest of earnings season plays, but either way, we are bullish, optimistic and positive (#BOP) on America 2.0 stocks.

Your Takeaway for Today’s Market

Investing in the stock market is not for the faint of heart.

It takes grit, gumption and fearlessness.

Stock investing is very volatile.

One day your portfolio positions are up, the next day they’re down.

The right stocks can help realize gains of hundreds, thousands or millions of dollars, while the wrong stocks can dole 100% losses.

It’s a gamble.

But one thing is for certain … you must be in it to win it!

Notable and sustainable wealth is made over time.

That’s why we recommend holding our stocks for a minimum of three to five years. That’s how you invest for growth, not day-to-day price swings.

And our focus is on America 2.0 investing.

We invest in tech-forward companies like DocuSign, Teladoc and Zoom.

I have no doubt looking back these companies will seem “obvious.”Which is why you can’t get shaken out of the market because of volatility. What goes down can also go up​ … and in a big way.

In investing, it’s important to zoom out to get the full picture.

We aim to do this at Bold Profits.

There’s a new economic and manufacturing boom that is being driven by a variety of next-generation technological innovations, industrial upgrades and consumer trends.

This is the Fourth Industrial Revolution.

Don’t miss out. Stay strong and be part of it!

Until next time,

Amber Lancaster

Amber Lancaster
Director of Investment Research, Banyan Hill Publishing

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