Hi I'm Jimmy in this video
we're looking at the growth stocks
that are gonna make up our growth
portfolio from our Dow
30 analysis.
Now if you're new to this channel
Well we've been doing an analysis
that we're calling the Dow 30
analysis where we analyze all
30 companies in the Dow Jones
industrial average.
We then take that analysis.
We're building three different
portfolios a value
a dividend and a growth portfolio.
This is a growth portfolio.
We already did the value in the
dividend portfolio.
So my goal here is
to pick companies that are
growing relatively quickly
or they're growing we expect them to
grow relatively well over the next
few years and they could make up
good long term investments.
Now because this is part of the Dow
30 series Well we're picking
we're sticking with companies that
are in the Dow Jones industrial
average and that's somewhat
tricky because these are very large
blue chip companies that have been
around for a long time.
So it's going to leave out key
growers like Facebook
or Google that would easily make
this list if they
if we were not restricting ourselves
to the Dow 30 companies.
Okay our first sector is the
financial sector.
Now we actually have four different
companies from the financial sector.
First let's look at both American
Express and Visa.
This is a chart of American Express
is earnings going back the past
couple of years and as we could see
it's been moving higher at a decent
pace when we switch over to visa
while visa has been doing even
better than American Express.
Now personally I think that these
two companies are great additions
to a growth portfolio because
they're likely to remain very
important in the economy
as technology pushes things forward
even services like Venmo
or Apple Pay or Samsung pay whatever
it might be as they pick up ground
they're not leaving them.
Visa and American Express behind
there is simply incorporating those
services into their own
business.
So I believe that Visa and
American Express companies like that
are gaining more ground and grinning
gaining more importance.
So I expect them to grow nicely in
the coming years.
Then we have the Travelers Companies
now travelers are not actually
using earnings per share.
I'm using revenue because
I think this belt better illustrates
their growth potential and their
growth over the past few years since
earnings per share for insurance
companies can be a bit deceptive.
So on the revenue chart we can
see that travelers is expected
to pick up a decent amount of
ground. We could see that with the
green bars green bars our analyst
estimates.
So I think that this is likely to be
a good thing for travelers stock as
they continue to grow.
Then we have the last company the
financial sector.
This is Goldman Sachs.
Once again I use a different
financial measure other than
earnings per share. This is the last
time I'm doing everything else going
forward. The earnings per share here
I use book value per share
and I did this because if
you remember that Goldman Sachs
video well price to book value is a
very popular way to try
to value a financial stock
like Goldman Sachs and Morgan
Stanley or a company like that.
So as you can see their book
value per share has grown nicely
and although we don't have estimates
for book value I
believe that book value per share
for Goldman will continue to do
quite well in the coming years.
Okay next up we have the information
technology sector here we have two
companies. First one is Apple.
Now obviously Apple's a solid
company and they're a good fit for
most growth portfolios.
And as we could see Apple's earnings
per share is growing and expected to
continue to grow in the next few
years.
Apple is pushing to expand
their current content offerings and
this seems like a smart move going
forward.
Plus they always have their great
products like their iPhones iPads
things along those lines.
So overall I expect as they continue
to expand their content offerings
Apple's earnings per share and
likely their stock price will
continue to grow.
Okay now right in line with this our
next company is Microsoft.
And as we could see Microsoft has
started to pick up their earnings
per share over the past few years.
And we expect
according to the green bars which is
analyst estimates that they're going
to continue to grow
in the coming years.
I think Microsoft is one of the
stronger companies out there.
And I think that this makes a good
addition to most growth portfolios.
Okay. Now we slide over to the
health care sector where we got two
companies. The first one is Johnson
of Johnson now Johnson and
Johnson's growth.
Their earnings per share growth was
a bit stale a few years ago
leading up to about 2015 and the
growth really started to pick up.
And as we could see by analyst
estimates while growth is expected
to continue to grow for the next
few years.
So I think that this will make a
good addition to the growth
portfolio.
Plus Johnson and Johnson
is somewhat of a defensive company.
So I think that that's a nice way a
nice thing we should incorporate
since we've been on a bull run for
so long.
It's probably good to have some
defensive names in here.
Okay. Next up we have UnitedHealth
which is another defensive holding
for our growth portfolio.
And as we could see in their
earnings per share.
Sharp Well just like Johnson
and Johnson they've begun to pick up
speed recently and analysts
estimates have their earnings per
share continuing to grow which
should make them a good addition to
the growth portfolio.
Plus like I said with JNJ
they're a defensive name they should
be a defensive name.
So in the event of a market pullback
I think we would be happy that we
added these two companies.
Okay now we move over to the
industrials but we have two more
companies. The first one United
Technologies now UTI
ex is an interesting one because
they're in the middle of a merger
with Raytheon and I believe that
this could be a very good thing for
UTI ex over the long run.
And clearly we can see that their
earnings per share estimates
are supposed to they have been
picking up pace in the next couple
of years. So I think that this is
going to make a solid growth
has the potential to make a solid
growth addition to our growth
portfolio.
Okay. Next up we have Boeing now
Boeing is an interesting one and
I've gone back and forth on this
one. Now this is a
chart of Boeing's earnings per share
going back the past few years
and as we could see for 2019
Boeing's EPA took a nosedive.
Now this is an estimate because
right now the first and second
quarter for Boeing are already in
but the third and fourth quarters
are just estimates.
So we're making the whole thing an
estimate. But either way in Q2
Boeing took a big loss
after all the issues that they've
run into with their planes and with
many of the things that I'm sure we
all know about going that that have
happened recently but
that dragged down their 20 19
estimates. But we add 20 20
well analysts estimates have
them growing almost as
if this didn't happen.
And I would expect solid growth
after 2020 for at
least a few more years which is why
I think it would be smart to add
Boeing to our growth portfolio.
Okay next up we have consumer
discretionary the first stock
in the consumer discretionary sector
is Home Depot.
Now I've been a fan of Home Depot
for a while and I believe they've
been a solid growth stock and
I expect for their growth to
to remain relatively strong over
the next few years.
So once again I think that this
is a nice addition to a growth
portfolio in general.
Okay. Next we have Nike.
Now I actually think that Nike has
done quite well in the past
few years and I expect them to do
well in the next few years as they
try to revitalize their company.
Now the trade tensions have weighed
a bit on Nike and
even though that most of their
products are made in Vietnam I think
it's about 20 percent 25 percent is
made in China.
But that may be behind us now
as a deal looks like it could be
getting worked out either way I
would expect for Nike's earnings per
share to continue to grow over the
next couple years which could be a
good thing for Nike stock and
ultimately our growth portfolio.
Okay. Next up we have Disney which
is our only communication services
company. Now as you could see
on the earnings per share chart
growth has somewhat stalled out
making this a somewhat
counterintuitive pick for a growth
portfolio but I think that the stall
has happened mostly because
they've had to expend an excessive
amount in their direct to consumer
platforms recently plus
they've had a call it a rough start
to integrating the fox assets
that they bought into their business
but I expect this to be sorted out
over the next year or two and then
there's somewhat sluggish growth
should resume after that
I believe over the long run Disney
should do quite well.
The earnings per share should do
quite well and ultimately their
stock and our growth portfolio
because of it. Okay.
So that wraps up all the companies
from the Dow that I thought were a
good addition to the growth
portfolio at this time.
Now there are a few other companies
that could make interesting
additions to this a company like
Tesla as an example.
I think we all know that they've had
fantastic growth but
they're not in the Dow so I couldn't
included.
I mentioned Facebook or
Google. Those are companies that
would definitely belong
in a growth portfolio
but not so much because they're not
in the Dow for our case.
Now I could easily make a case for a
company like Horizon and
AT&T rises in the Dow
AT&T isn't that one
I was borderline adding that to this
but I expect there to be a lot of
outlay of capital sort of like
Disney was a few years ago I expect
horizon to be having to do that for
the next couple of years as they
expand to 5G.
So where I think that they will grow
in the long run over the next decade
or so.
I believe that the companies
here are more likely to grow sooner
rather than later.
So that's our growth portfolio.
Now my question to you is are there
any Dow 30 companies that you
think belong on this list that I
shouldn't. Would you have taken any
off.
I know that there's tons of
companies from let's say the S&P 500
that should make a growth portfolio
but since this was part of our Dow
series I tried to limited to those.
There's also a few growth ETF s
that could do quite well.
Please let me know what you think in
the comments below.
Any companies that you would add or
take away put those in the comments
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icon. Thanks so much for stick with
me all the way into the video and
I'll see you in the next video.
Thanks.