October 2017 Stock Picks TOP 25 STOCKS October-17 RANK TICKER NAME   RANK TICKER NAME SECTOR INDUSTRY 1 CELG Celgene Corporation 08 - Health Care 0803 - Biotechnology & Drugs 2 FB Facebook Inc 10 - Technology 1018 - Computer Services 3 BABA Alibaba Group Holding Ltd 09 - Services 0948 - Retail (Catalog & Mail Order) 4 URI United Rentals, Inc. 0939 - Rental & Leasing 5 V Visa Inc 0909 - Business Services 6 WLK Westlake Chemical Corporation 01 - Basic Materials 0106 - Chemicals - Plastics and Rubbers 7 GOOGL Alphabet Inc 8 DHI D. R. Horton Inc 02 - Capital Goods 0215 - Construction Services 9 PYPL Paypal Holdings Inc 07 - Financial 0703 - Consumer Financial Services 10 ULTA Ulta Beauty Inc 0963 - Retail (Specialty Non-Apparel) 11 USCR US Concrete Inc 0212 - Construction - Raw Materials 12 COST Costco Wholesale Corporation 13 HD Home Depot Inc 0960 - Retail (Home Improvement) 14 AAPL Apple Inc. 1003 - Communications Equipment 15 DEO Diageo plc (ADR) 05 - Consumer Non-Cyclical 0503 - Beverages (Alcoholic) 16 EW Edwards Lifesciences Corp 0812 - Medical Equipment & Supplies 17 AMZN Amazon.com, Inc. 18 GD General Dynamics Corporation 0203 - Aerospace and Defense 19 FDX FedEx Corporation 11 - Transportation 1103 - Air Courier 20 DWDP DowDuPont Inc. 21 GS Goldman Sachs Group Inc 0718 - Investment Services 22 DAL Delta Air Lines, Inc. 1106 - Airline 23 C Citigroup Inc 0727 - Regional Banks 24 BAC Bank of America Corp 25 AGN Allergan plc As of September 29th, 2017- Subject to change.

October 2017 Growth Stock Picks As of September 29th, 2017. Subject to change.

October 2017 Growth Stock Picks As of September 29th, 2017- Subject to change.

October 2017 Growth Stock Picks As of September 29th, 2017- Subject to change.

October 2017 Growth Stock Picks As of September 29th, 2017- Subject to change.

October 2017 Growth Stock Picks As of September 29th, 2017- Subject to change.

Apple Inc. (AAPL) Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers. The company also provides iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod, a line of portable digital music and media players. Further, the company sells Apple-branded and third-party Mac-compatible, and iOS-compatible accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service; AppleCare that offers support options for its customers; and Apple Pay, a mobile payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California. Source: FinViz.com, September 2017

Apple Inc. (AAPL) POSITIVES: Apple just released three new phones. On September 12, Apple (AAPL) announced the new iPhone 8 and 8 Plus models, and the more radical iPhone X. Obviously, all three models differ in both size and key features, but there is one interesting thing that they all have in common, the A11 Bionic processor. While many marvel at the iPhone X with its new OLED screen and groundbreaking Face ID security unlocking system, the A11 is arguably the most revolutionary part of the package. The iPhone X camera reads the face of the user, extracts muscle movements and generates the animoji effects instantaneously. The processor is not simply the thing that makes it work, it is an integral part of Apple’s product, and designed with as much care and dedication as are the more visible parts and the software. The A11 SoC gives the new iPhones a Triple-A advantage: Alacrity + AR + AI. The stunning performance metrics on multi-core and graphics, the addition of the Neural Engine. Possible concerns: Apple's earnings and revenues have stagnated despite its rapid rise this year. For instance, Apple's revenues have dropped over the past two quarters. And, overall revenues look relatively weak. The exception is the first quarter of fiscal year 2017, which benefited from a strong holiday season. Earnings per share also dropped for the second and third quarters of FY 2017. Source: Seeking Alpha, September 2017

Allergan plc (AGN) Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Specialized Therapeutics, US General Medicine, and International segments. The company offers a portfolio of products that provide treatment for the central nervous system, gastroenterology, women's health and urology, ophthalmology, neurosciences, medical aesthetics, dermatology, plastic surgery, liver disease, inflammation, metabolic syndromes, and fibrosis, as well as Alzheimer's disease. It is also involved in developing ocular implants that reduce intraocular pressure associated with glaucoma; medical devices for the correction of prominent ears; and intranasal neurostimulation devices, as well as other dry eye products. In addition, the company distributes generic and branded pharmaceutical products primarily to independent and chain pharmacies, nursing homes, mail order pharmacies, hospitals, clinics, and physician offices. Further, it develops a portfolio of breast implants and tissue expanders; and RM-131 (relamorelin), a peptide ghrelin agonist for the treatment of diabetic gastroparesis. The company has licensing agreement with Assembly Biosciences, Inc.; Mimetogen Pharmaceuticals, Inc.; Almirall, S.A; Naurex, Inc.; and Merck & Co. The company was formerly known as Actavis plc and changed its name to Allergan plc in June 2015. Allergan plc was founded in 1983 and is headquartered in Dublin, Ireland. Source: FinViz.com, September 2017

Allergan plc (AGN) POSITIVES: Allergan boasts dominant growth franchises in several areas and is strengthening its product portfolio through strategic acquisitions. In 2017 so far, through the accretive acquisitions of LifeCell and ZELTIQ, Allergan has expanded its medical aesthetics business into regenerative medicine and body sculpting, respectively. Allergan sold its generics business in Aug 2016 and the Anda distribution business to Teva Pharmaceuticals TEVA in Oct 2016. Following the closure of the Teva deal, Allergan can now focus on the branded segment and is using the proceeds to buy back shares, pay down debt and pursue additional deals. Key products like Botox and Linzess and new products such as Viberzi and Vraylar are supporting sales growth at Allergan. In fact, at the second quarter conference call, Allergan raised its previously issued earnings and sales guidance for 2017, following a strong first-half performance and solid outlook for the rest of the year. This year, Allergan is extending its R&D pipeline to adjacent categories like NASH, Parkinson's disease, and gene therapy with many promising phase II/III programs in development. Allergan has nine product launches planned for 2017. Biosimilars also represent significant opportunity. Allergan and Amgen, Inc. AMGN have a collaboration agreement for the worldwide development and commercialization of biosimilar versions of Roche’s RHHBY cancer drugs, Avastin, Herceptin and Rituxan. The biosimilar version of Avastin, to be marketed by the trade name of Mvasi, received FDA approval this month, making it the first cancer biosimilar to get FDA nod. Possible concerns: However, while analysts remain optimistic about the company’s growth prospects, it is facing generic competition for legacy brands like Namenda and Asacol HD as well as patent challenges for some of the other products in its branded portfolio. Source: Zacks Equity Research, September 2017

Amazon.com Inc. (AMZN) Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. In addition, the company offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, it provides compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreements services. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington. Source: FinViz.com, September 2017

Amazon.com Inc. (AMZN) POSITIVES: Amazon dominates North American online retail with an estimated GMV of approximately $180 billion in 2016. With more than half of the world's Internet users coming from developing markets, Amazon has sizable international growth opportunities, including Europe, Japan, and India. Kindle products and complementary devices like Fire TV, Dash, Echo, and Alexa represent intriguing customer acquisition and retention tools that capitalize on the shift to digital media while simultaneously promoting Prime memberships and AWS' various capabilities. Amazon is the most disruptive force to emerge in ecommerce in several decades, and with its $13.7 billion acquisition of Whole Foods it is poised to further upend traditional brick-and-mortar retail stores. Amazon owns one of the wider economic moats in the consumer sector and is likely to reshape retail, digital media, and enterprise software for years to come. Possible concerns: Amazon's margin expansion trajectory is likely to be uneven at times, given its global logistics and content investments, new sources of competition, and physical store aspirations. International expansion brings unique challenges such as local e-commerce regulations, infrastructure investments, and incumbent competition in some markets. Certain Amazon Web Services products will face competition from well-capitalized peers like Microsoft and Google, potentially exposing it to more aggressive price competition and longer-term margin pressures. Source: Morningstar, September 2017

Alibaba Group Holding Limited (BABA) Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; Juhuasuan, a sales and marketing platform for flash sales; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China. In addition, it offers cloud computing services, including elastic computing, database, storage and content delivery network, large scale computing, security, and management and application services, as well as big data analytics and a machine learning platform through its Alibaba Cloud Computing platform; Web hosting and domain name registration services; and payment and escrow services, as well as develops and operates mobile Web browsers. The company provides its solutions primarily for businesses. Alibaba Group Holding Limited has strategic collaborations with Driscoll's and Thai Union/Chicken of the Sea to launch their food products to China. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China. Source: FinViz.com, September 2017

Alibaba Group Holding Limited (BABA) POSITIVES: Alibaba is aggressively experimenting with physical stores as part of its New Retail strategy. The company is trying to replicate its online success in the offline retail channel. The company started using the phrase “new retail” in the last few months to signify a blending of online and offline retail through better logistics and data processing. It is now building its own physical mall in Hangzhou. This shopping center, called “More Mall,” is near Alibaba’s headquarters. It will have new retail technologies and experiences including virtual fitting rooms and makeup-testing mirrors. Offline stores still account for close to 85% of the total retail sales in China. By moving into the physical retail space, Alibaba will significantly expand its total addressable market. It is estimated that total retail sales in China will be close to $7 trillion by 2020. Building a strong physical presence through malls, supermarkets and convenience stores will help Alibaba increase customer loyalty for its ecosystem. It has also entered into a strategic alliance with Bailian Group by acquiring 18% stake. This will allow access to 3,600 supermarkets and chain stores across the country. Through this alliance, Alibaba hopes to deliver big data analysis to retail stores. With the current strategy, Alibaba can deliver high levels of growth for the next few years which should allow the bullish momentum to continue for its stock. Possible concerns: The only thing which can limit the bull run in Alibaba’s stock is the investors’ concern about the company’s ability to grow at over 40% due to already high sales on its platform. As Alibaba moves into the physical space through its asset-light approach, it can get into partnership with retail chains to provide the payment gateway, logistic support, big data analysis and other technological support. This expands the addressable market for Alibaba significantly. This move reduces investors’ fear about a possible slowdown in online retail sales in China. The company is now focused on providing services in both online and physical retail segments which can help the company grow at the current rate for the next few years. Source: Seeking Alpha, September 2017

Bank of America Corporation (BAC) Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans. This segment provides its products and services through approximately 4,600 financial centers, 15,900 ATMs, call centers, and online and mobile platforms. The Global Wealth & Investment Management segment offers investment management, brokerage, banking, and retirement products, as well as wealth management and customized solutions. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, real estate lending, and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina. Source: FinViz.com, September 2017

Bank of America Corporation (BAC) POSITIVES: Bank of America is up 15% year to date after dropping in August and bullish momentum is building in the stock.. Economic growth is accelerating in all key regions with more pressure on bonds. It's not Trump's tax plan but the fact that traders are finally discovering this macro trade again. The Federal Reserve is on a path of tightening monetary conditions, which should lead to better profit margins going forward. Moreover, after emerging from the financial crisis, BAC is attempting to both improve its balance sheet as well improve operating efficiency. Finally, the company trades at a lower valuation multiple than its peers, signaling that share repurchases should continue to drive BAC’s share price higher. Additionally, BAC’s balance sheet was destroyed during the financial crisis, leading the company to trade at a relatively low valuation multiple to its peers. If the bank can continue its turnaround efforts. However, it could provide the most return to shareholders of any of the big money center institutions. Possible concerns: Due to BAC’s heavy reliance on the U.S. retail banking and wealth management, the bank is vulnerable to domestic economic weakness. This contrasts to its other money center peers that have international operations, potentially insulating them from U.S. weakness. Although the U.S. economy is projected to remain strong in coming years, it is still something to be aware of. Source: Seeking Alpha, September 2017

Citigroup Inc. (C) Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. In addition, this segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2016, it operated 2,649 branches in 19 countries. The Citi Holdings segment provides consumer loans; and portfolio of securities, loans, and other assets. Citigroup Inc. was founded in 1812 and is based in New York, New York. Source: FinViz.com, September 2017

Citigroup Inc. (C) POSITIVES: Citigroup has had a strong run higher in recent months, but still remains well below its financial crisis highs. This has a strong global presence, and should benefit as the global economy improves. Moreover, rising revenue growth and expanding valuation multiples should lead the bank's share price higher in coming years. Citi is a global financial-services company, operating in more than 100 countries. The company's core business consists of its global consumer banking segment, which provides basic branch banking around the world. Additionally, its institutional clients group provides large customers with investment banking, cash management, and various other products and services. Due to Citi's global footprint, it differentiates itself from most of its banking peers. A large portion of its revenue is derived from both Latin America and Asia, meaning economic recovery in both regions should translate into top-line growth for the bank. Additionally, it is also the bank of choice for many global corporations due to its vast network of operations. Within emerging markets, there is an attractive combination of both high margins and rapid credit growth currently. Ultimately, Citi is betting on the health of the global consumer, which looks to be improving. Emerging markets are strong, and asset prices in these regions continue to outperform developed market assets in 2017. Moreover, as global interest rates increase, Citi's profit margins should benefit. With a lot of revenue growth potential going forward, Citi could see its share price double in coming years. Possible concerns: With Citi's large emerging market presence though, it is important to be careful. If credit growth expands too rapidly in these regions, it could lead to an unsustainable bubble, ultimately leaving Citi in a vulnerable position. Moreover, Citi's investment bank continues to underperform expectations, and could be a drag on revenue going forward. Source: Seekingalpha, September 2017

Celgene Corporation (CELG) Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodulatory drug for multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; POMALYST/IMNOVID to treat multiple myeloma; OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis, psoriasis, and ankylosing spondylitis; and ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers. The company's products also include VIDAZA, a pyrimidine nucleoside analog for intermediate-2 and high-risk MDS, chronic myelomonocytic leukemia, and acute myeloid leukemia (AML); THALOMID to treat patients with multiple myeloma and erythema nodosum leprosum; and RITALIN and FOCALIN XR products. Its clinical stage products comprise OTEZLA for use in treating various immune-inflammatory diseases; luspatercept for beta-thalassemia and MDS; CC-486 to treat MDS, AML, and solid tumors; AG-881 for glioma with IDH mutations; LSD1 inhibitor to treat non-hodgkin lymphoma and solid tumors; CC-122 and CC-220 to treat hematological and solid tumor cancers, and inflammation and immunology diseases; and durvalumab, an anti-PDL-1 antibody, for multiple hematological cancers. The company has a strategic collaboration with BeiGene, Ltd. It also has collaborative agreements with Acceleron Pharma, Inc.; Agios Pharmaceuticals, Inc.; Sutro Biopharma, Inc.; bluebird bio, Inc.; FORMA Therapeutics Holdings, LLC; OncoMed Pharmaceuticals, Inc.; NantBioScience, Inc.; AstraZeneca PLC; Lycera Corp.; Juno Therapeutics, Inc.; Nurix Inc.; Jounce Therapeutics, Inc.; and Dragonfly Therapeutics, Inc. Celgene Corporation was founded in 1980 and is headquartered in Summit, New Jersey. Source: FinViz.com, September 2017

Celgene Corporation (CELG) POSITIVES: Celgene continues to perform within expectations and has continually reaffirmed long-term goals. A forward P/E of approximately 15x combined with a growth rate above 20% is attractive, which equals a PEG ratio below 1x. This is a lower PEG ratio than all other large-cap pharmaceutical stocks. Management recently reaffirmed 2020 Revenue goals of $21 billion, which is almost double from current levels and adjusted diluted EPS is expected to exceed $13.00. These are aggressive goals, but they appear achievable given Celgene's clinical portfolio and pipeline. Consensus Wall Street estimates indicate 14% upside potential in the stock. Possible concerns: Celgene could suffer a few clinical trial failures, yet the company has long-term patent protection on existing blockbuster commercial drugs, so the company is almost guaranteed to see strong growth through 2024. Source: Seeking Alpha, August 2017

Costco Wholesale Corporation (COST) Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio; meat, bakery, deli, and produces; and apparel and small appliances. It also operates gas stations, pharmacies, optical dispensing centers, food courts, and hearing-aid centers; and engages in the travel businesses. In addition, the company provides gold star individual and business membership services. As of August 28, 2016, it operated 715 warehouses, including 501 warehouses in the United States, Washington, District of Columbia, and Puerto Rico; 91 in Canada; 36 in Mexico; 28 in the United Kingdom; 25 in Japan; 12 in Korea; 12 in Taiwan; 8 in Australia; and 2 in Spain. Further, the company sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington Source: FinViz.com, September 2017

Costco Wholesale Corporation (COST) POSITIVES: Costco Wholesale Corporation (COST) remains one of the most under-appreciated retail companies in terms of recent performance versus market sentiment. As the market keeps looking for companies that post strong online sales growth, the traditional grind of Costco is being overlooked, and it’s almost as if the near-90% membership renewal rate means nothing whatsoever. In the last 52 weeks, Costco’s comparable store sales grew 4.1%; and, excluding the impact of gasoline prices and foreign exchange, it grew by a reasonable 3.8%. Comps growth has, in fact, accelerated in the last four weeks, as Costco reported 7.4% growth in the US during the month of August, and 6.1% when excluding the impact of gasoline prices and Forex. Comparable store sales are growing and, as a result, net sales are increasing, while membership renewal rates continue to remain at around the 90% levels that they have traditionally maintained.The hidden upside comes from the fact that Costco not only stands resilient against a resurgent Wal-Mart and an Amazon running amok, but it is able to increase comps on its own inherent strengths without having to resort to margin erosion through excessive discounting. And that upside will remain for as long as Costco keeps its current business model. Possible concerns: n the long run, Amazon and Walmart will make things extremely difficult for smaller retailers to survive. As the market goes through a consolidation phase, where smaller companies vanish and larger ones merge, it will free up plenty of customers for Costco to poach, helping it to further increase its customer base in the United States. Source: Seekingalpha, September 2017

Delta Air Lines Inc.(DAL) Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered around a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile applications/Web, telephone reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; staffing, and professional security and training services, as well as aviation solutions to third parties; vacation packages to third-party consumers; and aircraft charters, and aircraft management and programs. As of February 2, 2017, the company operated a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia. Source: FinViz.com, September 2017

Delta Air Lines Inc. (DAL) POSITIVES: Delta Air Lines appears to have fundamental strengths that are not currently reflected in its stock price. Delta Air Lines has a strong management team that has increased their focus on profitability in the last few years. This has allowed the company to post healthy margins while keeping its debt at a reasonable level. While other carriers like American Airlines have gone on an aircraft buying binge, DAL has been much more conservative in its capacity expansion. Within the airline industry, one of the most important metrics is passenger revenue per available seat mile (PRASM). Delta has started posting quality improvements in this metric. The company showed 3.5% PRASM growth in May, 2.5% gain in June and 2.7% growth in July compared to the year ago period. Management has also forecasted 2.5%-4.5% growth in PRASM in Q3. On the other hand, rival United has forecast -1% to 1% PRASM growth due to higher competition on its most profitable routes. Operationally, the airline is a much stronger carrier than either United or American. It has a strong capital structure and provides a healthy dividend yield to investors. At the same time, the stock trades at a discounted valuation to other carriers. Analysts estimates show Delta has over 30% upside relative to its current trading price offering investors a quality margin of safety. Possible concerns: The September quarter has been marked by a series of Atlantic hurricanes and tropical storms (see image below), their impact to the travel industry, particularly in the Unites States and the Caribbean, is yet to be fully quantified. In the wake of Hurricane Irma, 13,000 flights had been canceled across the sector by September 10th, with Delta and its main hub in Atlanta likely significantly impacted. I would not rule out seeing in the 3Q17 results additional, one-time costs incurred as a consequence of re-booking, flight rearrangement efforts and operational difficulties. Aside from an active hurricane season (but to an extent related to it), crude oil prices have recovered strongly in 3Q. Accounting for 17% of last quarter's total operating expenses, second to personnel, fuel costs should be a key line item dragging Delta's profitability down this quarter. Sources: Seeking Alpha, September 2017

Diageo plc (ADR)- (DEO) Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness. The company also provides adult beverages and non-alcoholic products. Diageo plc was founded in 1886 and is headquartered in London, the United Kingdom. Source: FinViz.com, September 2017

Diageo plc (ADR)- (DEO) POSITIVES: Alcohol stocks have been performing well of late, primarily backed by the rising demand for flavored whisky, premium tequilas and spirits. The industry has recently witnessed the spirits segment gathering momentum, accounting for about 36% of the total alcohol market, grabbing share from beer and wine sales. Diageo plc DEO, which has been witnessing strong growth driven by rising demand for beverages. Diageo is always on the lookout for expansion opportunities, frequently undertaking acquisition-related activities. In June 2017, the company announced the acquisition of Casamigos, one of the fastest-growing premium tequila brands in the United States. This buyout is likely to strengthen Diageo's market share in the tequila category along with the existing Don Julio brand, acquired in February 2015. Notable acquisitions in the past includes; De Leon Comb Wine & Spirits, United Spirits Limited, Mey Içki, Shui Jing Fang and Halico. Diageo, like most other multinationals, is turning attention to the emerging markets. It is the leading international spirits company in markets of Africa, Latin America and Asia. Diageo, like most other multinationals, is turning attention to the emerging markets. It is the leading international spirits company in markets of Africa, Latin America and Asia. Possible concerns: Although the beverage sector is not particularly prone to disruption or rapid change, one possible source of disruption is startup brands. With the advent of micro-breweries, plus social media and other forms of viral marketing, new drinks can quickly scale up into significant businesses. Source: Zacks Equity Research, September 2017

D.R. Horton, Inc. (DHI) D.R. Horton, Inc. operates as a homebuilding company. It engages in the acquisition and development of land; and construction and sale of homes in 26 states and 78 markets in the United States under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, Regent Homes, Crown Communities, and Pacific Ridge Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, triplexes, and condominiums. It is also involved in the origination and sale of mortgages; and provision of title insurance policies, and examination and closing services. The company primarily serves title insurance agents, homebuyers, and homebuilding customers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas. Source: FinViz.com, September 2017

D.R. Horton, Inc. (DHI) POSITIVES: Homebuilders are one of the best-performing equity sectors in 2017. The sector has surged more than 30%, nearly tripling the performance of the S&P 500. Strong US economic data - and the accompanied income growth - has renewed hopes that pent-up demand will be unleashed from the rental markets into homeownership. Homebuilders delivered a strong 9% YoY growth in orders, but the benefits of the recovery continue to accrue to the largest homebuilders. Small builders have struggled with rising construction costs. Possible concerns: Two devastating hurricanes — Harvey and Irma — are taking a toll on homebuilders’ forecast for the soon-to-be-reported quarter. D.R. Horton, Inc. DHI has reduced its fourth-quarter as well as fiscal 2017 forecasts due to delays caused by the recent tropical storms. Two devastating hurricanes — Harvey and Irma — are taking a toll on homebuilders’ forecast for the soon-to-be-reported quarter. D.R. Horton, Inc. DHI has reduced its fourth-quarter as well as fiscal 2017 forecasts due to delays caused by the recent tropical storms. Source: Seeking Alpha, September 2017

DowDuPont Inc. (DWDP) DowDuPont Inc is jointly owned by Dow and DuPont for the purpose of effecting the mergers. The company segmented its operating activities into three reportable business units: Agriculture, Specialty Products, and Material Science. Source: FinViz.com, September 2017

DowDuPont Inc. (DWDP) POSITIVES: Dow and DuPont have finally completed their merger, creating DowDuPont (DWDP). The plan remains the same, break DWDP into three companies. The new plan includes not making the materials business as strong, following the spinoff. So, now the materials business will be smaller, with the specialty products business being bigger than expected. The move helps focus the materials sciences business, which was previously expected to be too broad. Still, the materials business will be big - with annual revenues of upwards of $40 billion, the specialty products business will be $20 billion, and agriculture business will be just under $15 billion. The recent changes by DWDP to its break-up plan include shifting the focus from the materials business and getting more attention for the specialty business. The big change is that DWDP will now move $8 billion in revenue (roughly $2.4 billion in EBITDA) planned for the materials business to the specialty business. As a standalone company, the specialty products company could easily attract buyout interest as well. In the end, the $3 billion in cost savings from the merger is nice. Possible concerns: But now, the real work begins. Sources: Seeking Alpha, September 2017

Edwards Lifesciences Corporation (EW) Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. It offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and their delivery systems for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral replacement, and minimally invasive aortic heart valve system; and tissue heart valves and repair products, which are used to replace or repair a patient's diseased or defective heart valve. In addition, it produces pericardial valves from biologically inert animal tissue; and provides heart valve repair therapies, including annuloplasty rings and systems. Further, the company offers critical care products, such as hemodynamic monitoring systems to measure a patient's heart function in surgical and intensive care settings; pulmonary artery catheters; and Oximetry Central Venous Catheters for continuous measurement of central venous oxygen saturation. Additionally, its critical care products include disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection; and peripheral vascular products used to treat endolumenal occlusive disease, such as embolectomy catheters for removing blood clots from peripheral blood vessels. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California. Source: FinViz.com, September 2017

Edwards Lifesciences Corporation (EW) POSITIVES: Edwards Lifesciences holds a leading position in patient-focused innovations for structural heart disease and critical care monitoring. The company’s portfolio includes products like annuloplasty rings, catheters and heart valves that enable the treatment of patients with cardiovascular disease. Edwards Lifesciences is focused on developing transformational structural heart therapies and estimates that the global transcatheter aortic valve replacement (TAVR) opportunity could cross $5 billion by 2021 driven by increasing awareness, expanding indications and improving technology. Edwards Lifesciences claims to have a very well-diversified and yet related product portfolio. Hence, any downturn in demand for TAVR will be offset by increasing adoption of SAVR therapies. And, the company is well-positioned to benefit from each of these trends. Possible concerns: Unexpectedly, Edwards Lifesciences is facing tougher regulatory environment in Europe as compared to USA for testing its early-stage technology. Besides, each of the country in Europe is implementing different regulatory framework resulting in loads of administrative work and high amount of resource deployment for the company. And, this has been a major factor delaying commercial launch of some of its most innovative technologies in the continent. Edwards Lifesciences has also claimed that patients entering the trial for the surgical valves are already very sick and also suffering with other co-morbidities. This is proving to be a major challenge for the company while performing transcatheter procedures, even when they are minimally invasive. The nature of the patient sample may even affect final trial results. Source: Zacks Equity Research, Seeking Alpha, September 2017

Facebook, Inc. (FB) Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2016, it had approximately 1.23 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California. Source: FinViz.com, September 2017

Facebook, Inc. (FB) POSITIVES: Key metrics, such as user base and advertiser base, have a long runway for growth, while others like ad load and the average price per ad are already near their peaks. This is one of the reasons why Facebook is pushing hard into the video segment in order to increase engagement and time spent per user. That will allow some breathing room for ad load and price per ad to keep growing. Facebook is also building communities and undertaking other engagement initiatives towards the same objectives: keep the supply side growing so the demand side has enough to feed on, and get users to spend more time on the platform so they can be shown more ads. The above-50% advertising revenue growth rate has to slowly come down over the long term, but the fact that most of these metrics are still growing at double-digit rates is a good indication that revenue growth is not going to sharply or swiftly come down. It might take several quarters or even two to three years to take effect, and it will be a slow and steady downward move. Possible concerns: Facebook is possibly trying to prepare investors well in advance for the slow move downwards, and trying to minimize the impact on the company’s valuation by repeatedly talking about ad load, and about revenue growth becoming more moderate. Source: Seeking Alpha, September 2017

FedEx Corporation (FDX) FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information; and offers transportation management and temperature-controlled transportation services. Its TNT Express segment provides international express transportation, small-package ground delivery, and freight transportation services; and business-to-consumer services. The company's FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages, as well as offers integrated supply chain management solutions. Its FedEx Freight segment offers less-than-truckload freight and freight-shipping services. As of May 31, 2017, this segment operated approximately 66,000 vehicles and trailers from a network of approximately 370 service centers. The company's FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; copying and digital printing, professional finishing, document creation, direct mail, signs and graphics, computer rentals, and ground shipping and time-definite shipping services; and packing services, supplies, and boxes. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee. Source: FinViz.com, September 2017

FedEx Corporation (FDX) POSITIVES: FedEx exited its 2017 fiscal year with strong earnings momentum, posting 14% growth in adjusted earnings per share for the full year. However, the package delivery giant stumbled out of the gate to begin fiscal 2018 due to a damaging ransomware attack that hit its TNT Express subsidiary in late June. While the ransomware attack on TNT Express was obviously a costly problem for FedEx, it also highlighted some opportunities for speeding up the merger integration process. For example, the company reacted to the cyberattack by shifting more volume from TNT Express into the FedEx delivery network. Based on this experience, FedEx believes that it can move up the timetable for integrating the two express delivery networks. Excluding the impact of the cyber attack, company performance of FedEx was largely along expected lines. Possible concerns: The late June ransomware attack disrupted TNT Express' operations for weeks. Not surprisingly, many TNT Express customers were extremely frustrated by the fallout from the cyberattack, which caused huge delays and made it impossible to track shipments. In some cases, this caused longtime customers to consider taking their future business elsewhere. As a result, TNT Express shipment volumes still haven't recovered to pre-crisis levels. Source: the Motley Fool, September 2017

General Dynamics Corporation (GD) General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, and outfits business-jet aircraft; provides aircraft services, such as maintenance, repair, aircraft management, charter, fixed-base operational, and staffing services; and performs aircraft completion services for other original equipment manufacturers. The Combat Systems group is involved in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This group offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; armaments; and maintenance and logistics support and sustainment services. The Information Systems and Technology group provides technologies, products, and services that support a range of military, federal/civilian, state, local, and commercial customers. This group offers information technology solutions and mission support services; communication, command-and-control, and computer mission systems; and imagery, signals, and multi-intelligence systems for customers in the defense sector, intelligence and homeland security communities, and the United States allies. The Marine Systems group designs, constructs, and repairs surface ships and submarines for the United States Navy and Jones Act ships for commercial customers. This group offers nuclear-powered surface combatants, auxiliary and combat-logistics ships, and commercial product carriers and containerships; and provides design and engineering support services, as well as maintenance, modernization, and lifecycle support services. General Dynamics Corporation was founded in 1899 and is based in Falls Church, Virginia. Source: FinViz.com, September 2017

General Dynamics Corporation (GD) POSITIVES: General Dynamics enjoys a dominant position as a Navy contractor. This is because it is one of the only two contractors in the world equipped to build nuclear-powered submarines. The company is a prime contractor for the development of Virginia-class submarines (another class of nuclear-powered submarine). General Dynamics enjoys a dominant position as a Navy contractor. This is because it is one of the only two contractors in the world equipped to build nuclear-powered submarines. The company is a prime contractor for the development of Virginia-class submarines (another class of nuclear-powered submarine). The growing cross-border tension due to North Korea’s continuous nuclear tests, along with radical terrorism has boosted the defense sector in the recent times. Recently, the U.S. Senate Armed Services Committee approved fiscal 2018 defense policy bill. The National Defense Authorization Act for fiscal 2018, worth $700 billion, includes $25 billion to boost Navy shipbuilding. Notably, the bill is expected to boost revenue growth for General Dynamics, which is one of the prime shipbuilders in the United States. The conflict with North Korea is likely to be an ongoing concern. General Dynamics is likely to thrive in this fear environment. Possible concerns: If the current situation with North Korea cools off, the demand for defense products could be reduced. However, it is possible that North Korea would be hurt by sanctions over time and stop testing missiles as a result. If this happened, the U.S. might consider reducing the defense budget. Source: Zacks Equity Research, September 2017

Google Inc. (GOOGL) Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also sells digital contents, apps and cloud offerings, and hardware products. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, X, and Google Fiber. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California. Source: FinViz.com September 2017

Google Inc. (GOOGL) POSITIVES: As the number of online users and usage increases, so will digital ad spending, of which Google will remain one of the main beneficiaries. Android’s dominant global market share of smartphones leaves Alphabet’s Google well positioned to continue generating top-line growth as search traffic shifts from desktop to mobile. The significant cash generated from the Google search business allows Alphabet to remain focused on innovation and the long-term growth opportunities that new areas present. GOOGL is finally doing something right in the smartphone space. By taking total control over hardware engineering and software, it will be able to compete head-on with Apple and Samsung. Apple commands only 13% of the global smartphone sales and makes a fortune. Alphabet could probably easily surpass this number by virtue of the fact that the Android OS commands about 86% of the global market. Furthermore, if GOOGL plans on making its own processor, this might bring more innovation to Android and consolidate the fragmentation of the space. Thus, it will be able to compete head-on with companies such as AAPL that seem to have the lead in augmented reality. Possible concerns: There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and the state of the search ad space. Alphabet is allocating too much capital towards high-risk bets, which face a very low probability of generating returns. Google’s dominant position in online search is not sustainable, as more companies and regulatory agencies are contesting the methods through which the company has been extending its leadership. Source: Morningstar, SeekingAlpha, September 2017

Goldman Sachs Group Inc. (GS) The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other prime brokerage services, as well as markets in and clears client transactions on primary stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans to provide financing to clients; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured loans to individuals through its online platform. The Investment Management segment offers investment management products and services; and wealth advisory services consisting of portfolio management and financial counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York. Source: FinViz.com, September 2017

Goldman Sachs Group Inc. (GS) POSITIVES: The company recently announced a bold revenue plan to produce up to $5 billion in new revenues over the next three years. As for the FICC business, the company is expecting to generate $1 billion in new revenues by closing the gap to its peers with increased penetration into the asset managers and banks. It is undoubtedly a bold plan for action; of course, time will tell how successful the company is in meeting this revenue plan. A lot is dependent upon the market conditions. Volatility remains low across all sectors, which reduces the money making opportunities. Company expenses continue to trend favorably. The compensation to net revenues ratio of 41% was the lowest first half accrual in the company's history and 100 basis points lower than 2016. Possible concerns: This is a high beta stock with very little dividend appeal. If the market enters any semblance of a bear market, the stock will get hammered. Source: Seekingalpha, September 2017

The Home Depot, Inc. (HD) The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its DIFM customers through third-party installers. It primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. The company also sells its products through online. It operates through approximately 2,278 stores, including 1,977 in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 119 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia. Source: FinViz.com, September 2017

The Home Depot, Inc. (HD) POSITIVES: Home Depot remains an attractive holding, even as it continues to hit fresh record highs. The home improvement retailer is in the midst of a structurally attractive economy for home buying, which should continue to drive fundamental performance. In addition, the company's valuation multiple is attractively priced relative to historical readings. Moreover, management is committed to its capital allocation plan, returning a healthy amount of cash flow to shareholders. With the number of tailwinds currently behind Home Depot, it is likely its stock price continues higher over coming years after breaking out to new highs this week. Within the home retail sector, Home Depot has shown to be the top player, growing both revenue and margins. In its most recent quarter, Home Depot saw comparable-store sales accelerate to 6.3% pace, up from 5.5% in the prior quarter. Management now states that Home Depot is on track to expand comps by 5.5% in 2017, ensuring another year of market share gains against rival Lowe's, which is expected to expand its comps by less than 4% over the next year. Moreover, Home Depot's operating margin is rising towards 15% of sales, a record high, compared to Lowe's, who recently reduced its profitability outlook and is closer to a 10% margin. Home Depot's management projects it should pass the $100 billion of annual sales mark in fiscal 2018, while also exceeding 15% operating margins. Home Depot is worth owning on its fundamentals before the tragic storms of the last month. Their earnings growth, financial stability,and healthy dividend would be attractive to most investors. That financial strength is likely to get an immediate and longer-term boost as a result of these tragic storms, and the rebuilding that will follow. Possible concerns: Over 25% of US stores are in states and provinces affected by hurricanes Harvey, Irma, and Maria. And when this turn is made, the company best positioned to provide the needed tools and supplies is Home Depot. Dow component Home Depot is the largest big box home improvement store in the United States. Due to this situation, there are no strong immediate concerns for the firm at the moment. Source: Seeking Alpha, September 2017

PayPal Holdings, Inc. (PYPL) PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. It enables businesses of various sizes to accept payments from merchant Websites, mobile devices, and applications, as well as at offline retail locations through a range of payment solutions, including PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The company's platform allows consumers to shop by sending payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California. Source: FinViz.com, September 2017

PayPal Holdings, Inc. (PYPL) POSITIVES: PayPal’s growth has been phenomenal in the last few years as the company continues to notch up 20% growth quarter after quarter. What makes PayPal’s growth phenomenal is that, despite being a new entrant to the payments processing industry and being pitted against formidable and well-established players, PayPal did a lot better than Visa (V) in terms of revenue increase over the last five years. Between 2012 and 2016, PayPal added $5,180 million to its top line, compared to Visa’s $4,661 million and MasterCard’s (MA) $3,385 million. One of the firm’s key metrics for growth is PayPal’s merchant services. By the end of the first quarter of 2016, PayPal had 14 million merchant accounts, which grew to 17 million by the end of the recently concluded second quarter of 2017. The three million additions in merchant accounts has resulted in a nearly $25 billion increase total payment volume. The metric also shows that merchants have been increasing their engagement with PayPal. It could be due to several factors, such as increased trust, PayPal continually adding more services and more customers, and so on. The combination of merchant accounts, ably supported by cross-border trade, is a wide moat that will be extremely hard for its competitors to break. Its customers who are already using the PayPal platform are not going to switch services that easily unless the competitor’s offering brings some tangible additional benefits. The growth of e-commerce already has shrunk global markets, and it will continue to connect merchants and customers all over the world. PayPal has made it extremely easy for merchants and customers to conduct their trade in a transparent manner, and the company has earned their trust. It’s a self-feeding cycle that PayPal has been constructing over the past several years, and that’s going to fuel the company’s growth over the next decade at least. With such a long growth runway and a robust ecosystem of products to keep customers and merchants coming in and coming back, this is one of the better investment opportunities in the payments industry. Possible concerns: One possible concern is the large concentration of business with eBay. Also, there might be a pullback due to Apple’s in-message payment recently announced. Source: Morningstar, September 2017

ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA) Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company's stores provide cosmetics, fragrance, skincare, haircare, bath and body products, and salon styling tools, as well as others, including nail products and accessories. It offers private label products consisting of Ulta Beauty Collection branded cosmetics, skincare, and bath products. As of March 9, 2017, the company operated 974 retail stores in 48 states and the District of Columbia. Its full-service salon offers hair, skin, and brow services; and provides products through its Website, ulta.com. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was founded in 1990 and is based in Bolingbrook, Illinois. Source: FinViz.com, September 2017

ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA) POSITIVES: The company has an enviable balance sheet with no debt and $273 million in cash. Currently trading at price to yearly sales ratio of 2.5% and a price to annual cash flow of almost 21 times. In addition, the company's P/E ratio is just shy of 23. All of these metrics are at a premium when compared to industry averages. However, with projected growth rate on earnings of 20%, this company has a lot of potential and is well worth the price even at these valuations. The sell-off in Ulta has been overdone. The company has a strong balance sheet, solid growth trajectory, a management team that has demonstrated an ability to execute and take advantage of the growing "selfie" market to defend and expand its piece of the cosmetics pie. Further, the retail beauty segment of the business is to some extent protected against internet rivals like Amazon as the largely female target market prefers to sample products in the store before they make their purchase. As a result of the "test then buy" process, Ulta, with over 20,000 different products on the shelves of its 1,000 store locations, has an effective defensive moat against internet retailers. Possible concerns: After Ulta’s earnings report in August, the stock price initially cratered on concerns that the beauty market in general is slowing which some experts contend means Ulta will have to deal with increased competition from the likes of traditional department store rivals as well as the increasing threat of online retailers like Amazon, all leading to a smaller piece of the pie and tighter margins. Source: Seeking Alpha, September 2017

United Rentals, Inc. (URI) United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power, and Pump. The General Rentals segment engages in the rental of general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools. This segment serves construction and industrial companies, manufacturers, utilities, municipalities, and homeowners. The Trench, Power, and Pump segment is involved in the rental of specialty construction products, including trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and HVAC equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment; and pumps primarily used by energy and petrochemical customers. It serves construction companies involved in infrastructure projects, municipalities, and industrial companies. The company also sells new equipment, such as aerial lifts, reach forklifts, telehandlers, compressors, and generators; contractor supplies, including construction consumables, tools, small equipment, and safety supplies; and parts for equipment that are owned by the company's customers, as well as provides repair and maintenance services. It sells its used equipment through its sales force, brokers, and Website, as well as at auctions and directly to manufacturers. As of January 1, 2017, the company operated 887 rental locations in the United States and Canada. United Rentals, Inc. was founded in 1997 and is headquartered in Stamford, Connecticut Source: FinViz.com, September 2017

United Rentals, Inc. (URI) POSITIVES: United Rentals was one of the beneficiaries of the so-called Trump Trade, as investors bet that it would benefit from increased infrastructure spending. It gained 88% from a low of $70.92 on Nov.3 to a high of $133.36 on March 1, but had dropped 20% through last Friday's close. But with construction needed to repair the damage from Harvey, United Rentals could see an uptick in demand for its products. Last month, United Rentals reported 8.5% higher earnings per share for its second quarter, backed by a 13.5% year-over-year jump in rental revenue. Encouraged by strong ongoing demand for equipment, management upgraded full-year revenue guidance to $6.25 billion-$6.4 billion, representing nearly 10% upside at the midpoint from last year's revenue level. Furthermore, management expects to generate strong free cash flow, to the tune of $825 million-$925 million, this year. Between its strong operational standing and a potential uptick in infrastructure spending in the U.S. in the wake of Trump's signing an executive order to expedite infrastructure-project approvals, United Rentals' stock appears to have solid upside potential. More so because at a trailing P/E of 16, United Rentals is trading at a significant discount to its five-year metric, as well as the industry average. Possible concerns: The stock has been struggling to maintain momentum, having lost nearly 14% of its value in the past six months. But if United Rentals' recent bumper quarterly numbers are anything to go by, there's every chance the stock could whip up solid returns going forward. Sources: Barron’s, August 2017 The Motley Fool, August 2017

U.S. Concrete, Inc. (USCR) U.S. Concrete, Inc. produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. The Ready-Mixed Concrete segment engages in the formulation, preparation, and delivery of ready-mixed concrete to customers' job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs. The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; and operation of aggregates distribution terminals, as well as transfer trucks for transporting cement and aggregates. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders. As of December 31, 2016, the company operated a fleet of approximately 1,540 owned and leased drum mixer trucks; 125 owned volumetric mixer trucks; and approximately 1,440 other rolling stock and vehicles. U.S. Concrete, Inc. was incorporated in 1997 and is based in Euless, Texas. Source: FinViz.com, September 2017

U.S. Concrete, Inc. (USCR) POSITIVES: Shares of U.S. Concrete rallied 12.4% since Harvey wreaked havoc on Aug 25. Demand for building materials for the repair of damaged properties is expected to increase, thus boosting the top line for building material companies. U.S. Concrete has remarkably beaten earnings estimates in three of the trailing four quarters, recording average beat of 60.6%. The company currently has a trailing 12-months Price-to-Earnings (P/E) ratio of 23.4, while the industry’s average stands at 24.9. Moreover, its forward P/E ratio (price compared to this year’s earnings) is lower at 20.66. This indicates that a slightly more value-oriented path may be ahead for U.S. Concrete. The company has put up a historical EPS growth rate (average trailing 12-month EPS growth rate over the last 3-5 years of actual earnings) of 64.9%, compared with the industry average of 20.5%. For 2017, the company’s earnings are likely to grow 44.9%, while its industry’s average calls for just 30.3% growth. The company also plans to continue to boost organic growth through expansion in existing markets. It is also focused on expanding its ready-mixed concrete and aggregate products platforms and entering into new major metropolitan areas through acquisitions. Possible concerns: Roughly 95% of U.S. Concrete’s revenue is concentrated in just three markets, increasing the potential impact of local market issues impacting company-wide profits. Source: Zacks Equity Research, September 2017

Visa Inc. (V) Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. In addition, it provides digital products, including Visa Checkout that offers consumers an expedited and secure payment experience for online transactions; and Visa Direct, a push payment product platform, which facilitates payer-initiated transactions that are sent directly to the Visa account of the recipient, as well as Visa token service that replaces the card account numbers from the transaction with a token. Further the company offers corporate (travel) and purchasing card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. The company has a strategic partnership agreement with Oman Arab Bank to convert the bank's current electron cards to chip-and-PIN debit cards. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California. Source: FinViz.com, September 2017

Visa Inc. (V) POSITIVES: The world's largest retail electronic payment processor is one of the most recognizable brands in the world. They provide transaction processing for credit, debit, and prepaid card transactions. In addition, they have a robust commercial payment system, and an ATM network that supplies cash in more than 200 countries. And all of these transactions generate income for Visa. Revenue per share has increased each and every year, from $2.03 per share in 2008 to $7.05 in 2016. Earnings per share have also increased every single year (from .56 in 2008 to 2.84 in 2016). In that same time, operating margins have stayed quite high. The lowest year being 2008, where they had a 46.9% margin. An example of their ability to use their size to build business could be seen in their victory in taking Costco's business from American Express, and in doing so secure a loyal and growing customer base with a massive number of transactions. By owning the largest piece of the pie, they stand to reap the most gains from the growth of this type of transaction worldwide. Possible concerns: Visa does have an average annual P/E Ratio of 25 over the life of the company. That is high when compared to others. Source: Seeking Alpha, September 2017

Westlake Chemical Corporation (WLK) Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products. It operates through two segments, Olefins and Vinyls. The Olefins segment offers ethylene, polyethylene, styrene monomer, and various ethylene co-products, as well as sells propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The Vinyls segment provides specialty and commodity PVC, VCM, EDC, chlorine, caustic soda, chlorinated derivative, and ethylene products. This segment also manufactures and sells products fabricated from PVC, including pipe, fittings, profiles, trims, mouldings, fence and decking products, window and door components, and film and sheet products. The company's products are used in various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as other durable and non-durable goods. Westlake Chemical Corporation also offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses primarily in North America and Europe. The company was founded in 1985 and is headquartered in Houston, Texas. Westlake Chemical Corporation is a subsidiary of TTWF LP. Source: FinViz.com, September 2017

Westlake Chemical Corporation (WLK) POSITIVES: Westlake Chemical’s shares are hitting new highs following the company’s strong second-quarter earnings release. The company’s profits (as reported) shot up around 38% year over year to $152.8 million or $1.17 per share in the quarter. The bottom line was boosted by earnings contribution of Axiall acquisition, lower effective tax rate, higher sales price of major products and lower costs associated with turnarounds and unplanned outages. Westlake Chemical also saw a roughly 82% jump in its net sales to $1,979.2 million. Sales in the quarter benefited from higher sales contributed from Axiall and increased selling prices for major products. The company is making notable progress in integrating and achieving the expected synergies associated with the acquisition of Axiall business. Westlake Chemical believes that continued investment and acquisition will help to fully leverage the improving Vinyls market. The Axiall acquisition has diversified the company’s product portfolio and geographical operations, creating a North American leader in Olefins and Vinyls. The company is on track to realize around $120 million in synergies and cost savings related to the acquisition in 2017. Ethylene production is heavily concentrated in Texas, and Hurricane Harvey caused 40% of domestic production to go offline. Westlake Chemical has no capacity in the storm's path and is set to reap the benefits from likely price increases across all its product lines. Possible concerns: There might likely be a short-term bump in earnings fade. Source: Zacks Equity Research, September 2017

Lee Johnson Capital Management uses research and investment information from sources that it deems reliable. This information is not a recommendation to buy or sell, but for illustrative purposes. Please consult your advisor before investing in these or like investments, as not all investments are suitable. Each investor has different goals and objectives.

LJCM uses our proprietary screening to determine what we consider, the Top 25 Growth Stocks to own in our All In Growth Model. Within this model LJCM will purchase a 4% position of each stock. These stocks are evaluated on a weekly basis and due to market conditions LJCM may make adjustments to the stock percentage and holding positions through out the month. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Lee Johnson Capital Management, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Please remember to contact Lee Johnson Capital Management, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. A copy of the Lee Johnson Capital Management, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request.