If you’ve been skeptical about the ability for the latest market rally to continue, well, I sympathize with you.
After all, the fundamentals in this economy and in this market aren’t exactly the stuff of raging bulls. Moreover, on a valuation basis the market seems to be trading a lot higher than the full-year EPS estimate on the S&P 500 can justify.
And though earnings this week have been just okay, the overwhelming bias among traders has been decidedly to the upside. In fact, the recent equity grind higher cannot be denied, nor should it be ignored.
That’s not to say that you should haphazardly jump into this market head first. Far from it. In fact, in a market that’s generally trending higher despite widespread skepticism, it’s more important than ever to put only the best-of-breed stocks on your team.
In the upcoming issue of my Next Week’s Winners advisory service, I’m doing just that with two stocks outrunning the pack in terms of both earnings per share growth and recent price strength.
Here’s a sneak peek…
Preview Trade #1
This company makes things that make vacations fun.
The diversified RV maker sells stuff that goes fast over rough terrain, and it sells the big toy haulers and travel trailers needed to go and spend a few days with your family and friends in the great outdoors.
Over the past year, the company’s stock has outpaced nearly 90% of all other publicly traded companies. And in terms of earnings power, the company has left some 98% of all other publicly traded firms in the dust.
Preview Trade #2
This biotech star was up some 10% in the past week, but the best part here is that the charts suggest that big move could just be the beginning of a protracted leg higher.
The company provides clinical testing services for both the biopharmaceutical sector and the medical device industry.
Earnings growth has been particularly powerful, with the company recently reporting an 86% surge in EPS on a 23% spike in revenue.
If you want a double-threat here in terms of big earnings and big share-price performance, then make sure you check out my Next Week’s Winners advisory service right now.