Core Insights - A significant downturn is occurring for growth stocks, with Q3 earnings season acting as a negative catalyst for many companies [1] Group 1: Market Conditions - The current market environment is characterized by a risk-off sentiment, leading to caution among investors [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and advising startups, providing insights into current industry trends [1]

Core Insights - The article discusses the volatility of growth stocks, emphasizing that while growth is essential for companies, market corrections can be severe when growth trajectories decline [1]. Group 1: Growth Stocks to Sell - **Mission Produce (AVO)**: - One-Year Revenue Growth: +25.3% - Current trading price is $12.21 per share, with a forward P/E ratio of 18x [3][5]. - **Guardant Health (GH)**: - One-Year Revenue Growth: +30.4% - Current stock price is $94, implying a valuation ratio of 10.4x forward price-to-sales [6][8]. Group 2: Growth Stock to Buy - **Netflix (NFLX)**: - One-Year Revenue Growth: +15.4% - Revenue base of $1.43 billion is a disadvantage compared to larger competitors, with a projected sales decline of 7.1% for the next 12 months [9][10]. - **Positive Aspects of NFLX**: - Global streaming paid memberships are increasing, allowing for revenue growth without additional customer acquisition costs [12]. - Share buybacks have led to a 29% annual earnings per share growth, outperforming revenue gains [12]. - Free cash flow margin increased by 18.4 percentage points, providing more resources for growth initiatives [12].

Core Viewpoint - The article discusses the investment research services provided by Cestrian Capital Research, Inc., emphasizing its focus on growth stocks, index ETFs, and risk management strategies [1]. Group 1: Company Overview - Cestrian Capital Research, Inc. is an independent investment research firm regulated by the SEC, led by CEO Alex King, who has 30 years of investment experience [1]. - The company specializes in covering growth stocks, index ETFs, and index options, as well as long-run investing and swing trading [1]. Group 2: Services Offered - Cestrian offers a full-service investing group called Growth Investor Pro, which includes features such as weekly webinars, real-time trade alerts, and access to stock ratings and charts [1]. - The platform also provides a community chatroom for members and direct access to Alex King and his team for inquiries [1].

Core Viewpoint - Growth stocks are expected to outperform in 2026 across all three markets, driven primarily by bond yields rather than earnings growth [1] Summary by Relevant Categories - **Market Positioning** - Growth stocks are identified as the optimal investment choice for 2026 [1] - **Performance Determinants** - The key performance determinant for growth stocks will be bond yields instead of earnings growth [1]

Core Insights - The article discusses the investment strategies and services offered by Cestrian Capital Research, Inc., highlighting its focus on growth stocks, index ETFs, and risk management through hedging [1][2]. Group 1: Company Overview - Cestrian Capital Research, Inc. is an independent investment research firm regulated by the SEC, led by CEO Alex King, who has 30 years of investment experience [1]. - The company specializes in covering growth stocks, index ETFs, and index options, emphasizing long-run investing and swing trading [1]. Group 2: Services Offered - Cestrian provides a full-service investing group called Growth Investor Pro, which includes features such as weekly webinars, real-time trade alerts, and access to stock ratings and charts [1]. - The platform also offers a community chatroom for members and direct access to Alex King and his team for inquiries [1].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Tyler Technologies (TYL) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company operates in the information management software sector, which is characterized by strong growth potential [3] Group 2: Earnings Growth - Tyler Technologies has a historical EPS growth rate of 13.2%, with projected EPS growth of 19.1% this year, surpassing the industry average of 15.5% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Tyler Technologies is currently at 15%, exceeding the industry average of 9.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 8.6% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Tyler Technologies, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month [9] Group 5: Investment Positioning - Tyler Technologies holds a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [11]

Core Insights - The article discusses the financial planning of an individual named Devon, who has received a $200,000 windfall and is considering how to invest it for retirement, aiming for $100,000 a year in passive income by age 67 [5][10]. Investment Strategy - Devon's investment strategy should involve a mix of stocks and bonds, with a heavier allocation to stocks in the early years and a shift towards more stable assets like bonds as retirement approaches [6][16]. - A conservative estimate of a 7% return on the $200,000 investment over 22 years would result in approximately $886,000, which may not be sufficient to generate the desired $100,000 in passive income solely from investment returns [7][10]. Passive Income Sources - The article highlights that a diversified portfolio could yield a dividend income of around $44,000 annually, assuming a 5% yield on the $886,000 portfolio [9]. - Social Security benefits are also a significant component of passive income, with projections estimating a monthly benefit of $5,785 in 22 years, leading to an annual income of about $69,430 [9][10]. Retirement Planning Considerations - The average retirement savings for Americans aged 45 to 54 is reported to be $115,000, indicating that Devon's financial situation is relatively favorable compared to her peers [3]. - Inflation poses a risk to retirement income, but Social Security benefits are adjusted for cost-of-living increases, which can help mitigate this risk [11][12]. Investment Types - The article contrasts value stocks, which typically provide higher dividends and stable growth, with growth stocks, which focus on rapid growth but often pay little to no dividends [13][14]. - A balanced approach that includes both value stocks and bonds is recommended for generating passive income while maintaining portfolio stability during retirement [15][16].

Core Viewpoint - Despite recent declines, certain growth stocks are still considered strong long-term investment opportunities due to their potential for recovery and growth [1]. Group 1: Viking Therapeutics (VKTX) - Viking Therapeutics' stock is down nearly 57% from its 52-week high of $81.73, primarily due to concerns over the high discontinuation rate of its leading drug VK2735 in clinical trials [4][5]. - The company is still developing VK2735, with an injectable version in late-stage trials, which could serve as a significant growth catalyst if approved [5][7]. - Currently, Viking Therapeutics has a market cap of $4 billion, with a current stock price of $38.17, and it has shown potential for weight loss of up to 14.7% after 13 weeks of treatment [6][7]. Group 2: Cava Group (CAVA) - Cava Group's share prices have decreased over 46% this year and are down nearly 65% from their 52-week high of $172.43, attributed to a slowdown in growth [8][9]. - The company's same-store sales growth was only 2.1% in the most recent quarter, a significant drop from 14.4% a year ago, yet it remains positive amid challenging economic conditions [9]. - Cava Group has plans to expand from 400 to 1,000 locations by 2032, indicating potential for future growth despite current challenges [9][11]. Group 3: Figma (FIG) - Figma's stock has fallen from a high of $142.92 to around $53, reflecting a significant decline since its public debut [12][15]. - The company has a market cap of $24 billion and reported $249.6 million in revenue for the period ending June 30, representing a 41% increase year-over-year [13][15]. - Figma's valuation is comparable to Adobe's previous bid of $20 billion for the company, suggesting it may be undervalued at its current price [13][15].

Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) focuses on growth companies within the S&P 500, while the Vanguard S&P 500 ETF (VOO) provides exposure to both growth and value stocks [1] Summary by Category Performance Metrics - VOOG has a 1-year return of 28.6% compared to VOO's 18.3% as of October 28, 2025 [2] - Over five years, a $1,000 investment in VOOG would grow to $2,200, while the same investment in VOO would grow to $2,083 [4] Expense and Yield - VOOG has an expense ratio of 0.07%, higher than VOO's 0.03% [2] - The dividend yield for VOOG is 0.49%, while VOO offers a higher yield of 1.15% [2] Risk and Volatility - VOOG has a maximum drawdown of -32.73% over five years, compared to VOO's -24.52% [4] - VOOG has a beta of 1.03, indicating slightly higher volatility compared to VOO's beta of 1.00 [2] Holdings and Sector Allocation - VOO holds 504 stocks, with technology as the largest sector at 35%, followed by financial services at 14% and consumer discretionary at 11% [5] - VOOG focuses on 217 growth stocks, with a heavier concentration in technology (43%), communication services (15%), and consumer discretionary (12%) [6] Historical Performance - Over the last 10 years, VOOG has averaged a return of 17.49% per year, outperforming VOO's average of 15.26% [8] Investment Considerations - VOO is broader and more diversified, making it suitable for risk-averse investors seeking stability [7] - VOOG's focus on growth stocks positions it for substantial growth, albeit with more short-term volatility [9]

Group 1: Ultrapar Participacoes (UGP) - Ultrapar Participacoes is a major Brazilian industrial group and one of the largest distributors of liquefied petroleum gas in Brazil, also a leading producer of petrochemicals and chemicals [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen the Zacks Consensus Estimate for its current year earnings increase by 33.3% over the last 60 days [1] - Ultrapar has a PEG ratio of 2.01, which is lower than the industry average of 2.63, and possesses a Growth Score of A [2] Group 2: Urban Outfitters (URBN) - Urban Outfitters is a lifestyle specialty retailer offering fashion apparel, accessories, footwear, home decor, and gifts [2] - The company carries a Zacks Rank of 1 and has experienced a 5.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Urban Outfitters has a PEG ratio of 1.07, compared to the industry average of 1.66, and has a Growth Score of B [3] Group 3: Western Digital (WDC) - Western Digital is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies [3] - The company holds a Zacks Rank of 1 and has seen a 2.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Western Digital has a PEG ratio of 0.97, significantly lower than the industry average of 2.27, and possesses a Growth Score of B [4]