Connect with us

Business

Finance: Growth stocks to beat market

Published

 on 

PHUKET: Growth stocks are always popular with Wall Street and retail investors alike because they are companies with sustainable positive cash flows along with revenues and earnings that are expected to grow at an above-average rate relative to the stock market.

Here are a couple of individual growth stocks that could be a good fit for your portfolio:

Gilead Sciences, Inc (NASDAQ: GILD) is a large cap biopharmaceutical stock with a nearly US$150 billion market cap. Gilead Sciences’ portfolio of products and pipeline of investigational drugs includes treatments for HIV/AIDS, liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions. In other words, a fairly well diversified portfolio covering some of the most common ailments faced globally, plus shares had an attractive 1.68 per cent dividend yield as of late September.

However, there could be an additional risk for investors in biotech/pharmaceuticals to consider as, although the next US Presidential election is still one year away, the political silly season has already begun with a Hillary Clinton tweet railing against drug prices.

Enanta Pharmaceuticals Inc (NASDAQ: ENTA) is a small cap biotechnology stock with a market cap nearing US$700 million. It is focused on developing drugs for viral infections and liver diseases, including hepatitis C virus (HCV) and non-alcoholic steatohepatitis (NASH). An estimated 130–150 million people globally have chronic hepatitis C infections, while NASH is becoming more common in developed countries affecting two to five per cent of Americans, possibly due to rising rates of obesity.

Enanta Pharmaceuticals is also positioned for growth as it developed one of the two direct-acting antivirals used in AbbVie’s (NYSE: ABBV) FDA approved Technivie treatment for hepatitis C (as well as another AbbVie hepatitis C combo therapy) and it’s therefore entitled to milestone and royalty payments on net sales of the drugs.

Synaptics, Incorporated (NASDAQ: SYNA) is a small cap tech stock with a market cap around US$2.4 million. It is a worldwide developer of custom-designed user interface solutions such as touch, display and biometrics products that are designed for mobile computing, communications and entertainment devices in the mobile, PC and automotive industries. Synaptics itself would also be an important supplier to both Apple and Samsung or any other device or technology makers in Asia.

Growth stocks also tend to come with a catch for income-seeking investors, as they usually don’t pay dividends because management is focused on reinvesting any retained earnings into capital projects to keep up the growth momentum.

Finally, individual growth stocks may also be held by the ETFs and other funds that you own – meaning you could have exposure to them without realizing it. That’s why you should always consult with an investment advisor who will make an appropriate asset allocation based upon your entire portfolio.

Don Freeman,BSME is president of Freeman Capital Management, a Registered Investment Advisor with the US Securities Exchange Commission (SEC). Based in Phuket, he has over 15 years’ experience working with expatriates, specializing in portfolio management, US tax preparation, financial planning and UK pension transfers. Don can be reached at: 089-970-5795 or email: freemancapital@gmail.com.

— Don Freeman

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

What you get for $X1 hour ago

What $100,000 buys you for a condo in Bangkok, Phuket, Pattaya, Koh Samui and Hua Hin

Thailand3 hours ago

Thailand News Today | Activists plan protests all across Thailand

Thailand3 hours ago

Snitching on parking space hoggers could earn you 5,000 baht in Thailand

Sponsored11 hours ago

10 Best Seed Banks that Ship Cannabis Seeds Discreetly to You (Free US Shipping)

Weather3 hours ago

Storm Noru weakens from typhoon to depression as it moves across Thailand

World4 hours ago

Suicide bombing in Afghanistan hits students preparing for exam

Politics5 hours ago

BREAKING: Prayut reinstated as Prime Minister of Thailand

Join the conversation on the Thaiger Talk forums today!
Technology5 hours ago

What role for Thailand in China’s great European EV invasion?

Cambodia5 hours ago

Cambodian delegation in UK to seach for stolen treasures

Thailand5 hours ago

20 baht notes printed with errors, says Bank of Thailand

Crime6 hours ago

Loan shark bombs debtor’s house in southern Thailand

Thailand7 hours ago

Thai researchers develop flood-resistant rice strain

Press Room7 hours ago

Southeast Asia’s hospitality leaders step into the ring to fight for sustainability at PHIST 5

Crime7 hours ago

Horrified relatives attempt ID of disfigured suitcase victim

Travel7 hours ago

Things to do in Bangkok that cost next to nothing (2022)

Travel7 hours ago

5 best spa treatments in Bangkok to pamper yourself this September – October

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending