HIGHEST GROWTH COMPANIES
The highest growth companies, April 3rd, 2025. Hi, my name is Joe Cantu, Ronald Liston and I from Cantu Tactical Wealth Management wanted to show you some of the stocks that we own. The biggest question that we’re receiving from many of our customer clients, friends and associates is will the stock market stay down based upon these President Trump tariffs imposed on other countries outside the United States.
Hopefully by looking at the analysis of some of these companies, this will answer that question. So, what are some of the highest growth companies in America that we own in our portfolios? Well, we’re going to be looking at the revenue growth rate and also the profit margin. But that will indicate where the stock is going. So, zooming in here, we’re going to take a look. At “Super Micro Computer”. We own this in most of our portfolios and if you look at the revenue growth rate for the last four quarters, it’s 125%. NVIDIA. Which we also own is 114%.
Now, let me talk about that just for a moment because when you think about it, what I’m saying is these companies revenue that they’re receiving in one year is doubling in size. Alright, so now let’s take a look at where the stocks are trading today. If you look at where the stocks are trading today, based upon this analysis, if the revenues growth is doubling in one year, then likewise those two companies stock price. Theoretically, in less than 12 months, we believe that stock could double in price based upon its revenue. What’s even more interesting, if you take a look at NVIDIA. It was trading at about $144.00 a share back in December. And over the last two quarters, it’s also beat revenue. And yet the stock is trading down below $100 a share today.
When you think about It. Do I believe that that stock is going to be trading at these same levels? No, I don’t believe that. Based upon the revenue of the stocks that they will be double in price over the next 12 months because that’s how much revenue they’re making. Let’s continue on, and look at Micron. We also own “Micron Technologies” in the momentum strategy that’s growing at 71%. On the revenue growth rate, Newmont Mining is 58%, which is amazing and then Broadcom at 40% revenue growth rate, that’s amazing, as well. Let’s take a look at some other stocks.
In the energy space, we have heat. Yes, now Hess is growing, has a revenue growth rate of 22%, but his profit margin is so, so high. For example, comparing to grocery stores, most profit margins for grocery stores are around 2%. I mean, they’re very, very small, but this profit margin for Hess is 21%. And what is the President Trump theme in the United States? It is drill, baby, drill. We own Hess in our portfolios as well. Now taking a lookat Meta, which is Facebook, it has a 21% revenue growth rate. But look at the profit margin 37%, that is amazing. It’s profit margin is so, so high. My belief is these stocks can’t stay at this price. They have to move up and they will move up soon.
Finally, let’s take a look at two more positions in the energy positions we have. Diamondback energy. Again, revenue growth rate of 31%. Amazing, we own it almost in every portfolio. And then the profit margin for Diamondback is 30%, which is huge. That’s just a very, very strong profit margin.
Now taking a look at the travel area, we have Royal Caribbean that we own in several of the accounts. It has a growth rate of 18%. And yet the profit margin is equal to that at a 17% profit margin. So, likewise, we don’t believe that either of these stocks are going to stay where they’re at. We believe that based upon the profit margins and based upon the revenue growth rate, these stocks will move up in price. We don’t think they might. We believe that they will move up in price.
DISCLOSURES
Any representation of stocks are for educational and entertainment purposes only and do not constitute a recommendation. Investing has risk of loss. You may lose money investing in the stock market and you should consult with your own advisors on any financial decisions. Joe Cantu, Ronald Liston. Joshua Carvalho and “Cantu Tactical Wealth Management” are registered investment advisors in the States of California, Florida, Georgia and Texas, providing pure independent advice we’re fiduciaries and provide money management services.
