The past two years have been dominated by value stocks. In 2015 investors fled to Utilities, Food & Necessities for safety and dividend yield (as bond rates were low). 2016 saw a surge in Banks and Energy, as investors anticipate a better economy.

What’s been left behind in all this is growth. Often, big sector moves occur when you least expect them. Bank stocks soaring after the elections. I didn’t see that coming. But after a +25% move higher the move may have been played out. For a while anyway.

But in the end stock growth correlates to profit growth, and higher profit growth stocks have lagged the last two years. These ten stocks have an average Estimated Long-Term Growth Rate of 15%. Yet some haven’t gone up in a year. Perhaps they catch up in 2017?


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David Sharek

David Sharek is stock portfolio manager and CEO of DavidSharek.com. David believes a company's profits ultimately drive the price of its stock. His book The School of Hard Stocks can be found on Amazon.com.