Today is a big day. I will add three names to the Growth Portfolio and Aggressive Growth Portfolio:
- Chuy’s (CHUY) is breaking out as it clobbered earnings estimates. The Tex-Mex food chain had flat profit growth in the last fiscal year, and is now back on the road again after posting profit growth of more than 50%. I think CHUY will run higher because people like Chipotle so much. Here’s an article on Chuy’s telling more about the story.
- Acadia Healthcare (ACHC) runs psychiatric centers here in the US and in the UK. The company is also breaking out after beating the street. ACHC is a top growth stock right now, typically ranking #1 in Investors Business Daily’s top growth stock list. The downside here is the P/E is high, but the company is growing fast because it’s acquiring other operators and that’s giving a big boost to profits.
- Cognizant Technology Solutions (CTSH) is also breaking out after beating the street and upping guidance. This Indian IT outsourcer is one I have owned on and off for many years. CTSH is not as sexy as the other two stocks, as its only a 20% grower. It’s also in the Conservative Stock Portfolio.
- I will also sell AutoHome (ATHM) from the Aggressive Growth Portfolio because it is down today after posting profits that beat expectations. ATHM, a Chinese auto site, will be reviewed next week in-depth, and I will evaluate whether to hold on to or sell the stock in the Growth Portfolio.