CURRENT GUNDERSON TOP 5 LIST - Constant Contact

[Pages:67]June 23, 2017

Password for this week's Client Newsletter archive is: global

CURRENT GUNDERSON TOP 5 LIST

This past week was a very good week in the stock market. All of the major U.S. stock indexes hit new high all-time highs last week. The Donald Trump trade is back on.

The eight year plus bull market is still well intact and I continue to ride it for all it is worth. Leadership in the market has changed several teams during the bull market run. Right now the Technology and Healthcare sectors continue to be the fastest growing sectors in the entire market, and are therefore the two strongest groups.

While these two sectors currently continue to be the best sectors in the market, the Energy and Commodity sectors are still the worst sectors in the market. Bricks and mortar retail is also a terrible sector to be invested in. Instead, online retail is the place to be.

Here are my current top five best stock picks: 1

Before I get to the picks I want to look at some recent developments in the market, and with some major upgrades coming to my Gunderson Best Stocks Now App.

Let's first look at some recent developments in the market. The Trump trade was back on last week. Jay Sekulow, one of President Trump's attorneys made the rounds on TV last Sunday. He denied that Trump was being investigated. This got the market going again. The Trump "impeachment scenario has been buried once again.

The second quarter will end this Friday, and the earnings parade will begin all over again. The technology and healthcare sectors still have the best earnings growth, and that is why these sectors continue to lead the market. As long as they don't get too expensive, they will continue to lead the market.

Oil prices continue to tank. This is a threat to the overall earnings of the S&P 500. So far, I have seen little impact, but if oil continues to go lower it could hurt the overall market, as it did in 2015 and 2016.

THE BIOTECH SECTOR: On Tuesday the Trump Administration announced a much more efficient FDA. The goal is to speed up the drug approval process. This was music to the biotech sector's ear. The biotech sector lifted off on the news.

THE HEALTHCARE SECTOR: The Senate version of the Republican Healthcare Plan was released on Thursday. Many of the healthcare stocks also lifted off on the news. It appears that many of the subsidies will still be in place.

Now for some news on my app.

GUNDERSON BEST STOCKS NOW APP EXPANSION: The major expansion of the app is now underway. We are adding about 300 more stocks to the U.S. Index immediately.

We will next add about 1,300 European Stocks and about 4,500 Emerging Market stocks. China, Canada, and India stocks are also coming soon. Users of the app will be able to sort by regions or globally. This will be very valuable as the action in the market now moves around the globe much more than it did in the past. Information on these global stocks is now much more available than it was in the past.

App users in Europe and in Canada have been asking me for regional version of the app for quite some time, and now we are going to deliver it. The same technology of performance, value, safety, and technical patterns will continue to determine the overall rankings.

Many of these global stocks are also now available for individual investors to buy. Many of them have U.S. ADRs. The app will now be able to look under a whole lot more rocks than it is currently looking at. The more rocks you turn over, the more potential nuggets may turn up.

Once again, it is important to remember that app users will be able to sort by region or globally. Remember, everything is relative to one another. For instance, the best stock in Europe may or may not rank that well when compared globally.

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We will also be adding a much more complete ETF and Mutual Fund database. Users will also be able to sort by the ETF or Mutual Fund universe or globally against the entire database. When the project is complete, I would anticipate an additional 10,000 stocks being added, and about 5,000 more stocks and mutual funds. The App will also have many new features added to it. The goal is still the same: To find the very best stocks that best fit our various strategies and risk profiles, and keep the process and the app simple. The app is currently one of the top 50 financial apps in the world. My goal is for it to be the number one tool that investors turn to for their stock market research. Speaking of research, here are my current top five overall stock picks: I chose them using my app. #5 is Tencent Holdings (TCEHY) out of China.

Data from

Tencent is a $342 billion dollar large-cap Chinese company. It is a provider of internet and mobile, value added services and online advertising.

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As you can see from the chart below, the relative strength of the stock is very good. It is outperforming the red-hot NASDAQ and the S&P 500 by a wide margin over the last twelve months.

The screenshot of the app below shows how the stock has performed vs. the market over the last 1, 3, and 5 years.

Data from

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I currently have a five year target price of $70 on the shares. The stock close Friday at $36.02. Earnings have been growing by 31% per year over the last five years, and it is expected to grow earnings by an average of 20% per year over the next five years. #4 is (NTES). It is also a Chinese company. It too is a large-cap stock at $43 billion in size.

Data from

Netease also continues to outperform both the NASDAQ and the S&P 500. The companies earnings have been growing by 31% per year over the last five years.

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Check out the performance show below of the stock vs. the market over the last 1, 3, 5, and 10 years. No wonder that the stock earns a performance grade of A+.

Data from

I like to combine performance with valuation. I also like the current valuation on NTES. I come up with a five year target price of $580 per share, which still gives it plenty of upside potential.

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#3 is Facebook Inc. (FB). Ever hear of it? It was started by some guy named Zuckerberg. From a dorm room at Harvard to a $444 billon dollar company in the Silicon Valley.

#3 is Facebook The relative strength of the stock is not as good as the first two mentioned, but it is good.

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Here is how the stock has performed against the market over the last 1, 3, and 5 years.

Believe it or not, I find the valuation to be quite compelling at the current time.

The shares are currently trading at a discount to its anticipated five year growth rate. I currently have a five year target price of $280 per share.

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