The Boeing Company (BA) announced today that profits will barely rise in 2016. The previous forecast reflected earnings growth of 14%. Therefore, Boeing is no longer a growth stock, and no longer meets my investment criteria.
I recommend that you sell Boeing and move your capital into WellCare Health Plans (WCG) or Cardinal Health (CAH).
By making this move, you will trade a non-growth stock for a growth stock, and you will acquire a stock in a sector that’s prepared to rise.
There are many other industry groups with far less bullish charts. Make no mistake, our goal is to achieve capital gains. Therefore, putting money into one of the more bullish sectors in the market is going to enhance your chances of making profits sooner rather than later.
Cardinal Health (CAH) is a strong Buy-rated stock in the Growth & Income Portfolio. The stock corrected with the broader market in early January, and has now begun its rebound. The price will likely rise to 86, pause for a short while, then continue climbing.
WellCare Health Plans (WCG) is in the Growth Stock Portfolio. Today, I’m raising its rating from Hold to Strong Buy. The share price suffered with the January stock market downturn. However, it quickly bottomed and stabilized, trading in a tight sideways range since January 7. The stock appears ready to climb to upside price resistance at 82, where I expect it to pause before resuming its recovery