Many investors jumped out of expensive growth stocks and into quality cyclical stocks earlier this year to capitalize on the economic recovery. But investors’ interest in growth stocks has been returning lately. This is evidenced by the…
SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 5.4% returns over the past month versus the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 1.7% loss and the SPDR S&P 500 Trust ETF’s (SPY) 1.9% gains over the same period. People’s gradual return to “analog” lifestyles as COVID-19 restrictions are removed, along with continued fiscal and monetary policy support for economies, should help many stocks generate solid growth in the coming quarters.
The Fed has said that it expects to make at least two interest rate hikes in late 2023 but has left interest rates unchanged for now. Furthermore, the Conference Board expects U.S. real GDP growth to be 6.6% in 2021. These factors should bode well for growth-focused stocks.
So, we think it could be wise to bet now on PetroChina Company Limited (PTR – Get Rating), Starbucks Corporation (SBUX – Get Rating), and Vale S.A. (VALE – Get Rating). Each has solid growth prospects.
PetroChina Company Limited (PTR – Get Rating)
Headquartered in Beijing, China, PTR does business in a range of petroleum-related products, services, and activities internationally. The company has a total of 31,151 km of pipelines that includes 22,555 km of natural gas pipelines, 7,190 km of crude oil pipelines, and 1,406 km of refined product pipelines. It is a subsidiary of China National Petroleum Corporation.
The company’s operating income increased 16.3% year-over-year to ¥551.92 billion ($85.43 billion) for its fiscal first quarter, ended March 31, 2021. Its operating income was ¥44.15 billion ($6.83 billion) compared to a ¥9.25 billion ($1.43 billion) operating loss in the prior-year period. Its net income came in at ¥31.64 billion ($4.90 billion) versus a ¥13.35 billion ($2.07 billion) net loss in the year-ago period. Its EPS was ¥0.15 ($0.02) compared to a loss per share of ¥0.09 ($0.01) in the prior-year period. Its EPS and net income have increased at CAGRs of 32.7% and 32.2%, respectively, over the past three years.
Analysts expect PTR’s EPS and revenue to increase 245.5% and 34.7%, respectively, year-over-year to $5.01 and $377.55 billion in its fiscal year 2021. The stock has gained 61.7% over the past nine months to close yesterday’s trading session at $49.03.
PTR’s POWR Ratings reflect solid prospects. The company has an overall A rating, which translates to Strong Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. It has an A grade for Growth, and a B grade for Value, Stability, and Sentiment.
Click here to see the additional POWR Ratings for PTR (Momentum and Quality). PTR is ranked #1 of 50 stocks in the B-rated Foreign Oil & Gas industry.
Starbucks Corporation (SBUX – Get Rating)
World renowned SBUX operates as a roaster, marketer, and retailer of specialty coffee. The Seattle, Wash., company operates through three segments: Americas; International; and Channel Development. It operates roughly 32,000 stores and offers its products under the Starbucks, Teavana, Seattle’s Best Coffee and Evolution Fresh brand names.
Last month, SBUX announced in partnership with…
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