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Adding Home Runs to Your Portfolio

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This bull market may be a little long in the tooth, but there are still many miles to run. Just think back to how many market pundits talked about "selling everything that isn't nailed down" and similar calls to get to cash. They have all been dead wrong.

We have seen some corrections, but they have been rather short lived. Investors have been trained by this market to "buy the dip" but that has required excellent market timing to sell near the top and then buy back in near the bottom.

If you don't have timing skills to rival Chronos, then you better have a sizable amount of cash on the sidelines and be ready to pounce. The problem with that philosophy is that the cash isn't working for you on the way up and you once again have a timing problem.

Admittedly, this bull market cannot last forever and many years may have already passed you by. It is time to make the next few years really work in your favor. It is time to add some Home Runs to your portfolio.


Just What Is A Home Run?

Hitting on a great stock is an excellent feeling. You get your money in early, and then let it grow. Over time, the stock has doubled and that is what we define as a Home Run.

The first component of hitting more homers is to make sure you have the patience that is required. Stocks don't double in just a few months (most of the time) and they certainly aren't overnight success stories. It takes patience and time to see a 100% or more return.

The stocks that do have a stratospheric run are probably the names that you want to stay away from. Oftentimes it's wise to shun penny stocks and low digit stocks ($3 or less) as they often contain a much higher degree of risk. Instead look for small and mid-cap names because the real big stocks take years to double.

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Zacks' Best Home Run Stocks

Today you can look inside our market-beating "home run" portfolio and see its live buy recommendations. Recently, it closed gains of +106.2%, +238.9%, and +361.9%.1

This winning strategy is grounded in long-term aggressive growth principles, but applies timely Zacks Rank predictive power to promote quick starts and limit risk.

See live buys now >>

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Primed For Growth

Growth investing isn't for everyone. It requires a lot of faith in management to guide a business to where the demand is and that is no easy task. No one knows what the future brings, but every few months we get a glimpse of the future.

The guidance management offers around earnings season is about as close to a vision of the future as we can get. Earnings almost always come a month (or more) into the next quarter so at least a third of expected sales are already booked. Trusting this trend is somewhat easy.

But not all guidance is good, rarer still is excellent guidance that can get you well on your way to a home run. Some of the best stock picks I have made come after great guidance was given. That look forward allows many investors to pile on, as a solid degree of risk is removed from what is already a good growth story.


Being Well Positioned

When investing in growth stocks, choosing the right ones makes all the difference. There is an inevitable idea of timing involved but there are a few steps that tend to help mitigate that concern.

The first signal that a stock is already on the right path is the Zacks Rank. This takes in all the earnings estimate revisions from the major brokerages and looks for the best consensus moves. The details are explained on the site, but the basic idea is that a strong Zacks Rank tells me I am instantly on the right path.

This is not the only Rank that I lean on. I also look for a strong Zacks Industry Rank. I never try to chase the top 3%, it is far too likely that stocks in that industry have already made their move. Instead, focus on industry ranks that are improving and still have room to run.


Lean On Some Experience

As a professional in the investment world for 20+ years, I have seen my fair share of ups and downs. While there have been some strike outs, I have also led plenty of investors into some big time home runs.

Over the years at Zacks, I have found that the combination of a hot industry and good guidance coupled with a strong Zacks Rank can lead to some excellent stocks. But even when the stars seemed aligned, a constant diligence is required.

Just because you found a good stock doesn't guarantee a home run is coming. You have to stay on top of the news feed. Keep your ear to the ground for all the analyst estimate changes and potential upgrades and downgrades. Of course the ever-changing ebbs and flows of the broader market must also be taken into consideration.


An Easier Way to Find Home Run Stocks

Starting today, you are invited to let me do the finding for you. Go ahead and look inside my portfolio service, the Zacks Home Run Investor.

Its trades have generated quite a buzz. In recent weeks, we've closed gains of +361.9%, +238.9%, +90.8%, +100.1%, and +161.0%. 1

And right now, I'm getting ready to pull the trigger on a stock with the same kind of explosive upside.

One of the best features of our home run strategy is that it starts with strong Zacks Rank stocks, which correlate with a 1 to 3-month profit horizon. Then I add growth and value metrics so our selections stand a good chance of beating earnings and then continuing those beats for many quarters to come. So this is one long-term strategy that looks to start fast - which is exactly the way I like it.

Here's one more reason to look into Home Run Investor right away. You may download our newly released Special Report, Zacks' 7 Best Stocks for the Next 30 Days free of charge. From the current list of 220 Zacks Rank #1 Strong Buys, our experts predict that these 7 will break out the soonest.

Don't miss out. Your chance to download the free report ends Sunday, May 13.

Check out Zacks Home Run Investor and 7 Best Stocks Now >>

All the best,

Brian Bolan

Brian is our growth stock expert and one of the hottest hands at Zacks with a reputation for double and triple-digit gains. He is the editor of the Zacks Home Run Investor.

1 The results for the trades listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors.