Hello,
I have a portfolio with 50% fixed income and 50% low volatility ETFs (diversified exposure to American markets, emerging markets, Canadian markets, real estate, etc.). I'm looking to introduce a growth component to my portfolio.
For this component, I'm considering Visa or YUMC. Visa seems like a good company as they make money on transaction costs and their network as opposed to debt like the other CC companies. Of course this means that the stock behaves more like a tech stock than a financial stock and has higher volatility. But I believe that as Visa continues to expand in the east, there is potential for massive growth. Plastic payments are not as ubiquitous in the east as they are in the west. The current P/E of 50+ is a little worrisome, but according to finviz, forward P/E is 24.
YUMC just released earnings and missed some estimates. This is primarily due to missing growth on pizza hut which seems to be rejected by the Chinese market, but KFC seems to have grown better than expected and YUMC expects the number of KFC in China to double in the future. YUMC is on sale right now, due to a 14% drop in stock price at the time of writing this due to earnings (which I believe is an overcorrection due to the great KFC numbers which make up for the pizza hut failure). I believe that as the Chinese middle and lower middle class grows and matures, KFC, taco bell and pizza hut will continue to grow in China. YUMC has a P/E of 28 and a forward P/E of 24.
I would like opinions of people on this sub: based on fundamentals and future growth potential, would you prefer V or YUMC in your portfolio as a growth stock?
Discuss below, thanks.
Submitted July 06, 2017 at 02:27PM by Koush22 http://ift.tt/2tN2p81
