The company just posted third-quarter earnings, featuring revenue and earnings each up more than 30%. Bulls like its expansion into the health-care industry and telemedicine. QUALCOMM, Inc. (NASDAQ:QCOM) recently hiked its dividend by 40%, and its yield is now at 2.3%. The stock’s P/E ratio near 17 and its forward P/E near 13 are both well below its five-year average of 24 .
Other companies didn’t do as well last year, but could see their fortunes change in the coming years. Domestic tobacco giant Altria Group Inc (NYSE:MO), for example, gained 8% and yields 4.8%. This company has an impressive history, but its growth prospects are more constrained these days, due to rising taxes, regulations, competition from discount cigarettes, and a shrinking smoker base. In its latest quarter, revenue shrank 3% while earnings rose 5%. Meanwhile, the latest news in the tobacco industry is that the FDA might tighten regulations on (or even ban ) menthol cigarettes, which many see as a gateway smoke for young people. A ray of hope for tobacco companies is the growth of electronic cigarettes.
The big picture
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The article Investing in Growth Stocks — With Ease originally appeared on Fool.com is written by Selena Maranjian.
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