The new goods and expanding industries propelling America's long-term prosperity

The VT Tyndall North American Fund manager, Felix Wintle, lists his top three US stocks in which he would invest

We invest in businesses that are increasing their earnings, margins, and revenue. If you notice that all three of these factors are increasing simultaneously, you can be sure that your stock will do well. A large portion of our stock analysis is focused on identifying companies that exhibit these traits, as we frequently discover that they are at the start of a new product cycle.

We combine macroeconomic analysis with our foundational research to determine our current business cycle position. This influences our risk tolerance, which is defensive in bear markets and aggressive in bull markets. Lastly, we time our buys and sells using technical analysis.

We prefer to identify stocks that have strong share price momentum, which indicates that the market supports our fundamental beliefs. Our approach is active. When building our portfolio, we use a two-pronged strategy: tactical selection based on inflation and growth prospects, and core stock selection based on identifying long-term thematic winners.

The resulting portfolio typically differs greatly from our peer group and the index. The three stocks listed below, in our opinion, have significant upside potential.

Two key themes for investments.

Defense and AI, two of the most important investment themes of our time, are centered around Palantir (Nasdaq: PLTR). In order to help organizations like the US military and CIA understand and make use of the massive volumes of data they receive every day, software developers are integrated into these organizations.

In addition to its commercial uses, Palantir aids businesses in streamlining their supply chains and other operational processes. The company is distinct because, in terms of the range of products it offers, it has no real rivals. Its revenue is increasing at a rate of 55% annually, and it appears that its impressive performance will continue.

The company that was once known as Taser, Axon Enterprises (Nasdaq: AXON), is still the manufacturer of the well-known Taser product. Since its non-lethal alternative has become more popular around the world, it has achieved its goal of drastically lowering the number of firearm-related deaths. The true potential is in its bodycam product, which it also offers. Suspect arrests are captured on camera by the bodycam, and Axons AI software then uses the footage to create reports for police officers. This saves four hours of police time every day on average and is one of the few practical uses of AI that exists today. As Axon's market share in international markets remains in the single digits, we think it can sustain its 27 percent top-line growth.

More value for the money.

We think Dollar General (NYSE: DG) is just beginning a significant recovery. The primary cause of this is that Family Dollar, one of its rivals in the dollar-store industry, is rapidly closing locations, giving Dollar General market share in the process. This thesis was supported by the company's most recent earnings call, in which it reported increasing revenue and margins and saw a 16 percent increase in stock price.

We believe that worries about household spending and tariffs have been factored into the price of this stock, and since the company is trading at 0.9 times sales, it is inexpensive and ready for a rerating.