With Thanksgiving just around the corner, it’s a time for family, friends, turkey, and football. As we celebrate, it’s also a perfect opportunity to reflect on how to prepare your investments for the coming months. Let’s dive into some essential tips to enhance your portfolio.

Here are my top investing strategies to help you capitalize on market opportunities as we approach the holiday season.

1. Focus on Companies with High Margins. Look for businesses that can expand their operating margins. These companies often have a strong competitive edge—similar to a monopoly. They can increase prices without losing customers, positioning them well during times of inflation.

2. Watch for Earnings Surprises. Companies that experience margin expansion often surprise analysts with their earnings. Oil refiners are a prime example, currently benefiting from rising natural gas and crude oil prices while expanding their profit margins.

3. Seek Strong Sales and Earnings Forecasts. Consider whether the companies you want to invest in expect growth or a slowdown. A decline in sales and earnings will likely decrease interest from investors. Opt for businesses that anticipate growth quarter after quarter, as this will attract institutional investors and boost stock prices.

In my Growth Investor service, the focus is on stocks demonstrating an impressive 23.7% annual sales growth and a remarkable 506.3% annual earnings growth. These stocks have consistently outperformed the S&P 500 this year by more than a two-to-one margin.

4. Identify Positive Analyst Revisions. Stocks that receive upgraded earnings forecasts tend to post pleasant surprises for investors. If a lesser-known stock consistently outperforms analyst predictions, I find it advisable to consider it as an opportunity for significant price appreciation when it exceeds expectations again.

5. Prioritize Consistent Dividend Growth. For those focused on dividends, target companies that regularly increase their payments. By reviewing the last four dividends, you can assess whether they are climbing, falling, or remaining stable. A decreasing dividend can be a warning sign of financial trouble.

Investment Guidance for Every Investor

If you’re uncertain where to start, my Stock Grader can be a valuable asset. Simply enter a stock of interest, and it will provide an automatic grade: an A-rating indicates a “Strong Buy,” B is a “Buy,” C is a “Hold,” D is a “Sell,” and F is a “Strong Sell.” You’ll quickly know if a stock is worth pursuing or best avoided.

For those looking for solid investment ideas, I recommend exploring Growth Investor. It offers a selection of fundamentally strong companies across various sectors, positioning you to benefit when the market rallies or to safeguard your investments during downturns.

Now is the time to strategically position your portfolio. Stocks with strong fundamentals stand to gain from anticipated pension funding in the coming weeks, alongside the seasonal uptick during this time of year.

By being part of my Growth Investor group, you’re aligning with stocks that exhibit exceptional sales and earnings growth. Join Growth Investor today to optimize your investing potential.

Sincerely,

Louis Navellier

Editor, Market360